The Nonpartisan Leader Newspaper, January 13, 1916, Page 3

| | | | } .element of our population. I am glad to accep.t your kmd invi- tation ' to . write short articles for . your paper because I am interested in the unique movement which you represent. - That movement offers possibilities for good—and possibili- ties for good; which are at the same time alive and powerful are rare in this old world, at least in North Da- kota, North Dakoh a'Fnrm State North Dakota is a farming state and will never be anything else. What is for the present and future welfare of the farmers of the state is best for all of us who are engaged in legitimate business, mo ~matter what its nature. Not only are our farmers in the vast majority, but they constitute intelligen conservative and wealthy Other classes think on more subjects, but they do not think as deeply as do the farmers. Others have much at stake in good, laws and institutions, but the farmers have most of all'at stake because.they, come weal, come woe, have got to stay by their land: and face the music. Since they have the numbers, the intelligence and the vital interest, I see no reason why the farmers of North Dakota should not insist that legislation should be for their bene- fit and, that it should be_enforced when enacted. To bring this to pass is, I understand, the object: of ‘your i Ieague. ot Legislation for Farmers Benefit The question of improved market conditions’ seems to. interest your readers before all others. I do not know anything about raising, thresh- ing or marketing wheat. .Y am one of the few town men in North Dakota who do not claim to be sble to tell the farmers about their -own busi- ness. -1 'do not pretend to know whether ‘or' not the state can oper- ate a terminal elevator with success. _But this'I do know: If a great ma- jority ~of the farmers of the state want_to try the experiment, then it should be tired. If it is a success, it will be a great step forward. If it fails, the lesson will be worth the cost and we can then go about se- likewise the most The System of Farm Credits Is at Fault and a Change - Is Sadly Needed and Can Be Brought About by A - Farmer Legislature----Politictans Will Not Do--- - Farmers Must Do This Work Themselves. By HORACE BAGLEY, Towner curing fair market some other way. conditions in Finance Is Leading Question Personally, I am inclined ‘to think that fair market conditions and fair conditions of all' kinds will only come when each individual = farmer who is worthy of credit can proper- ly fiflance himself. . When farmers and groups of farmers can get money at reasonable rates of interest and for the time they need .it, they will be masters of the situation, and not till then. No business can expect-to prosper when it depends for its success upon getting financial support from those whose economic interests are oppos- ed to that success. The farmers of this state have:.ample credit. Every dollar that comes into the state for investment comes into it on the ul- timate credit of its farmers. When the farmers learn to utilize that vast storehouse of credit directly and, not through the middle man, they have solved their problems. That they can so utilize their own credit is proved by the example of Germany and Denmark. What the Germans and the Danes have done, we should be able to do. Two Kinds of Credit Needed That better financial conditions in this state are indispensable is al: most self-evident.. Farmers need two kinds of credit. First, seasonal credit stock to mature. 'Second, capital while they wait for their crops and credit, that is credlt for the pur- chase ‘of land and 1}8 improvement. Without such credit the: average man is helpless: to materlally lmprove his condltxon To illustrate: By the census of 1910 there were 2635 farmers in Mc Henry county during the 6 years from Jan. 1, 1910, to Jan. 1, 1916, these 2635 farmers gave 37,161 sep- arate chattel mortgages in order to secure the seasonal credit necessary to grow the grain and meat upon which we all live. Isn't is rather .foolish for the farmers of McHenry county to worry about the gulf into which their river of wheat empties when its source is sucked dry by 37,161 chattel mortgages in six years? A Dehbt of $7,000,000 A careful examination of the rec- ords and a thorough knowledge of conditions, leads me to believe that the farmers of McHenry county are mortgaged, for a sum in, excess of $4,- 000,000. = The reports of the banks in the county show that the farmers owe those institutions about $2,000,- 000. This amount is largely secured by chattel mortgage. In addition, it is safe to say that the farmers owe - $1,000,000 for farm machinery, store bills and for money borrowed privately.. This makes a burden of debt of at least $7,000,000 borne up- on the shoulders of the farmers of this county, or about $2,6:6 for each individual farmer. Upon this in4 : debtedness they pay 8 per cent per annum upon their mortgage cent upon the balance, or seasonal indebtedness. 2 These figures mean that the farm- ers of the county pay annually $620,000- in interest charges and that capital or farm ‘each man-Jack-of-them pays an aver- age of $236 out of his annual crop before a cent of his receipts can be touched to buy shoes for the chlld- ren. Credit Systoin }:t Fault Do not misunderstand me, Mr. Ed- itor. The farmers of McHenry coun- ty are not borrowing too much money. The bankers are not to blame for getting all they legally can for the money they loan. The milk in the cocoanut is this: That seven million dollars our McHenry county farmers borrow is practically indebtedness and 10 per’ all outside money—money the bankers and real estate agents get from “down below.” 'The ultimate loaners of that seven million dollars in the east do not get over 5 per cent’ per annum for their money. ‘And most years money could be se- cured even more cheaply than that if the loaners were absolutely sure the money would reach the actual farmers, In other words, the farmers of Mc- Henry county could save at least $270,000 each year if they had back of them a reasonable, adequate credit system. If anywhere near the same saving could be made in the other counties of North Dakota, the financ- ing of a terminal elevator would cease to be a-problem, In fact, I think the “other fellows”. would be good without the need of any such elevator. Farmer Legislature Needed I do not wish to cast discredit upon the bankers of the state. Many a banker of my acquaintance has grown grey trying to supply credit to his customers during the past bad years. The system, not the banker, is to blame. There is and always will be a legetimate place for .the com- be a legitimate place for the com- as the farmers prosper, not other- wise. I cannot trespass upon your space farther. Suffice to say, in conclus- ion, that our present system of farm credits is as bad as it can be. A farmer legislature could not make it worse—they might make it better. The farmers of Denmark and Ger- many have bettered their condi- dition in just this way almost ke- yond belief. The farmers’ banks of Germany are at the basis of that country’s marvelous resisting power today. The Congress of-the Umted States is likely to pass a farm credit law at this session. If it does, that law should have the enthusiastic support of our state government. Would it get_such support from our present state officers, or other politicians like them? Certainly. not unless some such organization as the Non- partisan League throws the fear of God into their hearts. : Nonpartlsan Political League’s Official Program The matter of hail msurance is no msxgmficant affair. In a small grain state and_where hail storms are fre- quent, hail insurance is an economic necessity. - . The Saskatchewan government has recognized the importance ‘of such 2 necessity and” has provided that the various = municipalities: '(which correspond, to our counties) may by:a . majority vote of the farmers, adopt a bylaw wlnch brings them under such a.law. = Here and In Gan-h “In the year 1913 there ‘were 16 old line insurance companies doing busi- ness in this state. They collected as : premh\ms *the sum of $1,079,813.62. - They paid a loss of $500,109.10, thus * the farmers of the state contnbuted .. $679,704.61 without return. To put the matter in a dxii‘erent light, in 1914 the, Sascntchewan gov- o 2 ‘ernment made Aha.rge of $8:6,994,- he 3 Concerning State Hail Insurance . Article No. 4 e ' By OTTO T. MONROE : actually benefit the farmers and per- haps by men who are agents of old line insurance companies. ~The North Dakota state hail in- surance department makes a. charge of 80 cents per acre, while under the -Saskatchewan system charges are only - 4 cents per acre. (01d line companies make a charge of app,roximately $63 per: $1000. ‘The socalled hail insurance depart- ment demands cash ' in - advance, whereas the: private companies will take the farmer’s note. All this makes the present law unpopular-and. also gives a black eye to the princi- ple of state hail insurance in gener- al. In all probability it was desxgn— ed to do that _very thing. - - It is impressive to note the differ- ; cost of insurmg all the alled state hail ‘insurance om ared wnth the’ Saskntche-f * decided to do so by a majority of the ~voters. votmg on the questlon. state of North Dakota. The farmers of Saskatchewan saw how they were being robbed by pri- vate insurance =companies. They brought - pressure - to bear and the ‘provincial government gave them a decent law. . - Under the. Saskatchewan act when 26 municipalities (or counties) of the province have signified their de- sire to come under the provisions of the act,” then. a commission, called the 'Hail Insurance Commission, is nominated, one member by the lieutenant ' governor and the other two by the board of officers of the municipalities voting on the coming under the act. This commission has complete charge of .putting the act .into force. After the first 25 muni- cipalities: have come under the act ‘then any one or more.such addition- al mumclpalitxes may . come . under, the act at ‘any. regular election if * Who May Withdraw 1t 'owever, there be those resid- - 'mumclpahty whlch has proof withdraw such lands from un- der the provisions of the act. All land within such municipality, according to the act, is to be assess- ed at not to exceed 4 cents per acre and this assessment insures each acre up to a maximum of $500. - There may be, some day, a better system of hail insuranec devised, but up to date there is nothing that ap< proaches the Saskatchewan law. Ths ‘commissioners and the secretary- treasurer are paid a reasonable sal- ary for their services and their nec<« essary traveling expenses. But no profit is made by the institution. Moreover, surpluses left over are ap- plied in reducing the rate of charge§ for subsee{uent asgessments. The old line insurance companies fought this bill manfully but to no avail. Since it went into effect they have all abandoned the Sascatchewean province. There is nothing left for them to do that is profitable and not being able to make profits they re- . fuse to:do business at all - There may be valid objections to .the principle of compulsory hail in« surante but, at least, it is a decided improvement over thnt of mvate » ‘hail insurance. / An what can be done IR oo g S