Short-Time Rural Credits

Short-Time Rural Credits

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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1921 edition. Excerpt: ... greater uniformity and opportunity for borrowers to get loans iit approximately the same rate of interest. What the Federal farm loan act did in standardizing rates on farm mortgage loans can be done for short-time farm loans. In discussing credit conditions in Texas, the size of the State and the wide range in variation of climate and character of the industry must be considered. It is interesting to note, however, that the rates given in the preceding table show less variation than that given for some of the other States. Bankers of Texas charge from 10 to 15 per cent on the face of the loan whether it runs for a long or short period. They justify their practice on the ground that in rural districts there is no other call for the money, yet they must keep money on hand to meet the needs of the farmers throughout the year.29 This practice of charging a fixed per cent regardless of the length of time for which the money is needed makes a wide variation in the actual rate of interest. Bankers also state that their rates, though high, are lower than those charged by credit merchants. It may be conceded that these are good arguments, but they are not a justification for the practice. If funds can not be placed at interest and then secured as needed, a new system should be provided to meet this situation instead of making the local farm borrowers pay interest sufficient to cover idle bank funds. 7. Short-time credit to-day---The present banking system is inadequate for supplying the credit that agriculture needs and should have. Bankers, economists, financial writers, and leaders in farmer movements emphasize this fact.30 Myron T. Herrick states that--Agriculture, when considered from year to year and over extended areas, is in returns more

Product details

  • Paperback | 88 pages
  • 189 x 246 x 5mm | 172g
  • United States
  • English
  • black & white illustrations
  • 123678510X
  • 9781236785107