The Enid Events. (Enid, Okla.), Vol. 21, No. 27, Ed. 1 Thursday, April 16, 1914 Page: 7 of 8
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THE ENID EVENTS.
0. J. Fleming, President
John F. Curran, Vice Pres
S. T. Alton, Vice Pres.
Frank H. Let son, Cashier
E. T. Fleming, Asst. Cashier
Chas. A. Wilson. Asst. Cshr.
ENID NATIONAL BANK
ENID, OKLAHOMA
Capital - . . 1100,000.00
Surplus and Undivided Profits 45,000.00
Stockholders Lialilities - 100,000.00
Total - - $245,000.00
Accounts of Individuals and Bankers Solicited
We have an abundance of ready cash to loan
Our assets are clean
All good business solicited
S. T. Alton,
Glen A. Walters,
Frank H. Letson,
DIRECTORS
John F. Curran,
J. E. McCristy,
O. J. Fleming,
E. T. Fleming
The Source of the Bank Account.
The Quality Store
THE MODEL GROCERY CO.
Fancy Groceries and Meats
120 N. Indep.
Phones 194 and 195
Exclusive Agents for Chase & Sanborns Teas and
Coffee, Club House and Telmo Canned Goods
Heinz Pickles and Preserves
In our Neat Department we handle the very best corn fed
beef. In the grocery line we have the very best the market
affords. Will have at all times a complete line of fresh
fruits and vegetables. Watch our windows.
Quality and Service at a reasonable profit is our motto.
Kswmmmm v~ir ■•nn —-^rffiTTarrwiMT
Co-Operative Farm
Products Marketing
How It Is Done in Europe and May Be Done
in America to the Profit of Both
Farmer and Consumer
By MATTHEW S. DUDGEON.
WE BEAT TEN MEN 1
Cutting Weeds
No Levers in
your way on
this machine
Intended for shallow cultivation and at the same time cuts all
the weeds in its path. Leaves ground worked up fine. Roller
follows breaking up clods. Phis machine used once a week in
the cornfield will guarantee a big Crop of fine corn instead of a
stunted corn and healthy weeds, Machine operated with one
horse. We guarantee results. Write for particulars or call at
factory and give cultivator a personal inspection.
Selsor's Dry Farming Cultivator
R. P. SELSOR, Inventor
Series 1600-No. 803792
Factoty located at
116-18-20-22JW. Park St.
ENID, OKLA.
*1f Anything Happens,
Bell Telephone
Illness and accidents are unpleasant at all
times—but how much better to be prepared, to
feel secure, than that the emergency should
catch you unprepared and helpless.
To call the doctor, to get his first aid advice,
to order medicine—all this the telephone is de-
signed to do. Bell Service in the home has met
countless cases of trouble, has saved thousands
of lives.
Ckn you afford to be without it?
Call the Business Office to-day and order •
Bell Telephone for yorir home.
Pioneer Telephone
and Telegraph Company
(Copyright, 1U14, Western Newspaper Union
WILL THE BANKERS REFORM?
Copenhagen, Denmark.—The Ameri-
can banker must reform. It he does
not he will be up against it as am
others who refuse to mend their ways.
The American farmer cannot get
money of American bankers upon
terms suited to his needs. He is go-
ing to have the money from some
source. If the banker will not give
it to him he will organize a new kind
of a bank, for you may rest assured
that the American farmer is going
to have an opportunity to borrow
money upon some suitable basiB. The
Irish farmer can get money on favor-
able terms; the Belgian farmer co-
operating with his neighbors does his
own banking; in Germany the co-
operative banks do a business that is
astonishing in its volume; in Denmark
it is easy to get money for buying a
farm or for temporary investment in
seeds, fertilizers or stock. The same
is trye of the farmer in Italy and
France; even in benighted Russia
farm credits are cared for by co-
operative organizations.
Do the bankers of America think
that the American farmer is going to
consent to continue to be the only
civilized agriculturist who has no ade-
quate borrowing facilities. That is
not the American way. What, then,
can possibly prevent the formation of
co-operative credit associations all
over America? Nothing, except the
presence of some institution that will
do for the American farmer what co-
operative credit is doing for the Eu-
ropean farmer. If the American bank-
er wishes to do the banking business
of America so far as the farm is con-
cerned, he and he alone can give the
farmer this sort of an institution and !
thus make co-operative credit socie-
ties unnecessary. It is up to the
banker.
Capital for Farming.
Formerly when an American farm
could be acquired by living upon it,
when horses and cows and implements
were cheap, and when fertilizers,
blooded stock, and special high-grade
seeds were unknown, a young man
with comparatively little capital could
begin farming. Now considerable capi-
tal Is as necessary to success in agri-
culture as it is in the manufacturing
industries. Every wise farmer knows
that money* judiciously expended in
better stock, better buildings, labor-
saving machinery, proper fertilizers,
and good seed will net large returns.
But it takes money to do these things.
Consequently there is a demand for
loans.
In America the farmer can seldom
get a loan on terms that meet his
needs. In Ireland, Belgium, Germany,
Holland, Denmark, France, Italy and
elsewhere upon the continent the
banks have forced the farmers to or-
ganize co-operative credit societies. In
many instances the government also
has aided the co-operative banks In
obtaining money for leans. These so-
cieties are taking a safe, proluablo
business away frcm the bank. Now
when it is too late the banks realize
their mistake.
The question just now is this: Will
the American bankers forestall co-
operative credit companies by meet-
ing the needs of rural borrowers or
will they force the farmer to go Into
the banking business as did the bank-
ers of Europe? It is up to them. Will
they beat co-opcrative credit banks
by beating them to it?
Buying Farm Easy in Denmark.
To buy a farm there are a number
of different methods open to the Dan-
ish farmer. It must ba remembered
that in Denmark a farm is consid-
ered as having live stock and imple-
ments used in working the land in-
separably attached to it, hence the
purchase price to be paid includes all
equipment neceEsary to the operation
of the farm and all mortgages are se-
cured by a pledge of this personal
property as well a3 of the real estate.
I-; the would-be bu;. <r has forty per
cent, of the purcharo price he may
apply to a credit society for a long-
time loan amounting to sixty per cent.
of the value of the larm and all equip-
ment and stock upon it. The loan may
run from forty-five years to seventy-
nine years. The borrower has his
prospective purchase surveyed and as-
sessed. He makes out a mortgage and
delivers it to the co-operative society.
This mortgage and hundreds of oth-
ers like it are delivered to a trustee
with a trust deed which pledges them
as security for a series of bonds. The
co-operative society guarantees the
bonds also.
It is from the sale of these bonds
that the co-operative society obtains
its funds. These co-operative credit
associations have In the beginning no
capital whatsoever. Each is simply
an agency whose functions are to see
(1) that the real estate security of-
fered is assessed at its true value;
(2) that the title is clear; (3) that the
mortgages are properly executed;
(4) that they are grouped, pledged
and deposited with the trustee;
(5) that the trustee Issues bonds;
(6) that the land, buildings and equip-
ment are properly cared for and their
value is not permitted to deteriorate;
(7) that the payments of principal and
interest are promptly met.
Easy Repayment of Loans.
The farmer pays from four to six
per cent, of the principal amount each
year. This is not wholly interest, how-
ever, for it includes a Email install-
ment of principal, for the mortgages
are all amortization mortgages. Pay-
ment of this fixed sum annually or
semi-annually for the fixed period
therefor automatically discharges the
debt. A small amount out of each
payment is also set aside for reserve
for the co-operative society and for
an expense account. It has been the
universal experience, however, that
the expense runs very low.
Still Easier for the Farm Laborer.
There are other forms of loans even
more advantageous to the borrower,
particularly if he is one of the poorer
farm laborers. If such a laborer seeks
to become a land owner on a small
scale he may under certain conditions
secure a loan for nine-tenths of the
value of the proposed purchase, being
required to advance only one-tenth of
the purchase price in cash. The gov-
ernment furnished the funds for these
loans. The conditions are (1) the bor-
rower must have been engaged in ag-
ricultural labor for five years (women
may take advantage of this law as
well a6 men); (2) the land must not
exceed ten acres in extent nor $2,144
in value; (3) the borrower and pro-
spective purchaser must agree to crop
the farm in a certain manner, dividing
it up into five or seven fields and fol-
lowing a certain rotation of crops, thus
Insuring continued productiveness and
preventing deterioration of soil fer-
tility. Under these mortgages the
borrower pays three per cent. Interest
with no installments upon the princi-
pal for the first five years. Then ho
pays, in addition to the interest one
per cent, upon two-fifths of the loan as
an installment upon principal, doing
this until the two-fifths of the loan is
entirely discharged. Thereafter ho
pays an annual Installment of one per
cent, upon tho three-fifths remaining
of the principal, this being in addi-
tion to his three per cent, interest
as before. TI" b'fi'ls may be issued
upon unstamped paper and are free
from tax.
Does the Danish farmer take advan-
tage of these opportunities? Are tho
tenants becoming land owners? The
facts are these: Denmark has 2,000,000
population, sonuwhat less than that
of Chicago. It lias about 500,000 fami-
lies. Including those in cities and vil-
lages as well as those in the rural re-
gions. These co-operative credit soci-
eties have a membership cf over
200,000; that i3 to Bay, two out of
every five families in the entire coun-
try aro represented in them. Largely
ns a result of this credit system ninety
per cent, of the farmers of Denmark
own their own land.
How Character Is Capitalized.
Obtaining a loan en personal secur-
ity has been euphoniously termed
"capitalizing character." It is not an
| CENTRAL STATE BANK |
^ Capital $50,000 ^
i* The Personal Service Bank
$
*
|
1
*
*
*
1
a
§
Open an account with us and you|will be sur-
prised to see how fast it will grow.
We extend every courtesy possible to our cus-
tomers and give Jthem every safeguard for their
funds.
We will appreciate your business.
Our deposits are guaranteed by the
Depositors Guarantee Fund
OFFICERS
A. E. Stephenson, Pres. E. A, Pendarvis, Cashier
Geo. J. Gens man, V. Pres. [0. L. Fisher, Asst. Cshr.
Phone 110
A handful of Eastman's
"N-C" Film Cartridges
the only omunition you
need when you hunt
with a
KODAK
See the word "Kodak"
is on the end of the
spool.
Sold only by
THE WATROUS DRUG CO
Phone 79. Enid, Okla.
Inept phrase since any farmer who has
a good character, who is a sober, hon-
est, industrious, intelligent, productive
worker, has a capital that is consid-
ered a proper basis for credit and he
can in fact capitalize his character.
His character is in very truth under
these conditions his capital. Hero is
the way it is done here in Denmark:
By the law enacted in 1SD8 the gov-
ernment Is authorized to turn over to
the credit association $1,250,000, for
which the associations account to the
government at the rate of three per
cent, per annum. This sum is placed j
at tho disposal of the farmers' credit
association in order that these asso- '
clations may be ready to give small
loans to their members. When any
farmer finds it urgently necessary to
secure a loan in order to meet ex-
penses such as the payment of wages,
the price of better seeds, or of artifi-
cial manures, or of feed for cattle, he
makes application to one of these as-
sociations. In determining the amount
of the loan to be granted to each man
it is the theory that the earning ca-
pacity of the borrower should be taken
into account. This is thought to be
best indicated by the number of dairy
cows which he owns. A member may
thus obtain a loan to about $13 per
head of cattle fed and milked on the
place. The loans must be repaid in
from one to nine months. Interest
must not, according to the original law
exceed 4% per cent, per annum to
the borrower.
Danish Bankers Have Reformed.
The fact that there are in Denmark
many banks which are organized for
the sole purpose of meeting the needs
of the farmers has awakened the Dan-
ish banker to the fact that the rural
credit is a big business which he can-
not afford to ignore. Compared with
the American banker the Danish
banker most decidedly has reformed.
He does meet the needs of the farmer
in a manner which would surprise
Americans. This is particularly true
of the method in which he assists in
financing co-operative associations.
When the big Trifolium dairy associa-
tion was formed, for example, it was
done in this way: One hundred farm-
ers, most of them owners of large
farms, formed an organization for the
manufacture of dairy productB and for
the further purpose of supplying milk
to the city of Copenhagen. These one
hundred farmers were the owners of
something like 12,000 cows. While
they individually had property, real
and personal, they had no money
which they wished to invest in a co-
operative organization. They there-
fore sent their leaders to the bank
to borrow the money. They simply
asked the bank for a loan of $125,000
on the note signed by these leaders.
The bank did not require the other
members of the association to sign
the note, although by the terms of the
agreement into which all had entered
in the formation of the co-operative
association all were liable, jointly and
severally, for the debt contracted at
the bank. As a matter of course the
bank made the loan to these farmers
at a low rate of interest.
A most interesting feature of this
transaction is the method of repay-
ment. It was agreed that the loan
should extend over a period of twenty
years with the privilege on the part
of tho association to repay out of its
profit each year a sufficient sum so
that at the end of the twenty years
tho debt should be discharged. At
this time the association has been run-
ning for twelve years and has been
more than able to keep up its amorti-
zation pa; -: ,;ts. At the end of fiifiM
years more tho debt with the bank
will be discharged. At Fredericks-
sund, out some little distance from
Copenhagen, there Is a co-operative
egg association which Is composed of
10,000 farmers. These 10,000 farmers
had no capital which they wished to
invest In an egg-packing and shipping
organization. Their leaders went to
the bankers as did the leaders of the
Trifolium dairy association and made
a similar loan except that In the case
of the 10,000 farmers who wished to
start an egg-packing establishment the
period of repayment was over a period
of ten years rather than twenty. This
seems to be quite an ordinary prac-
tice.
Can Banks Supply Rural Credit?
I have said it is up to tho banker
to supply the American farmer with
loans similar to those supplied to the
European farmer. But there are those
who say that the joint stock bank can
never meet the farmers' needs as do
co-operative credit societies and that
co-operative credit will come In spite
of all the bankers can do.
Dr. Charles McCarthy Is of this
number. He bases his conclusion on
these grounds: First, no joint stock
bank can afford to tie its money up
for long-period loans as do the credit
banks. These deposits are all short-
time deposits. They have no way of
hypothecating one series of loans in
order to raise money for another se-
ries. Their system of finance is not
sufficiently elastic to lend itself to the
transactions demanded in an adequate
line of rural credit.
Second: No money-making concern
can possibly serve the farmers as do
co-operative credit societies whoBe solo
aim is to aid the borrower and to pro-
tect his interests.
But in agriculture a system of rural
credit cannot be a substitute for
brains and business sense and a mar-
keting system. Unless the farmer pro-
duces a good product and sells it to
advantage his farming will be a fail-
ure. Easy loans will only make it
a bigger failure. Co-operative credit
is important, but with it must come
a better system of marketing either
co-operative or otherwise, which will
give the farmer more than half what
Is paid for the farm product. And so
far as we can learn co-operative mar-
keting 1b the system which will do thla.
PANAMA TOLLS DEBATE
A<JA'l \ KltlDAV XIGHT.
The second high school debate this
season will be held at the Enid high
school Friday night, when the affirm-
aiice team composed of Roy H.lam.
Newman Baker and Vernie Goltry,
who recently defeated the Guthrie
team on the question, "Resolved that
no tolls shall be levied on United
States vessels passing through the
Panama Canal," will debate with the
negative team ctf Chickasha. Chick-
asha met Guthrie recently on the
above question and won. The result
of the debate Friday night will deter-
mine the championship of the three
teams and much interest in manifest-
ed by the high school students in
all three cities. ,
160 ACRES of lane: in Cireer county,
Oklahoma for exchange for mer-
chandise or good five passenger au-
tomobile. For further Information
see or write the editor of this paper.
tr. • ■
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Purcell, F. Everett. The Enid Events. (Enid, Okla.), Vol. 21, No. 27, Ed. 1 Thursday, April 16, 1914, newspaper, April 16, 1914; (https://gateway.okhistory.org/ark:/67531/metadc161208/m1/7/: accessed April 25, 2024), The Gateway to Oklahoma History, https://gateway.okhistory.org; crediting Oklahoma Historical Society.