AGRICULTURAL ECONOMICS 



this means of borrowing money is the rate of 

 interest, which is usually higher than it should be, 

 and higher than the farmers would have to pay 

 for the use of money if they had the benefit of a 

 good credit system. 



But neither the local money lender nor the 

 agent of the insurance company provide the farm- 

 ers with a means of investing their savings. The 

 young farmer who saves but a few hundred dol- 

 lars each year, cannot hope to lend this money 

 on a mortgage, because those who wish to borrow 

 money to invest in land generally desire a larger 

 sum at one time. Hence the farmer finds the 

 country bank with its low rate of interest, about 

 the only chance for investing his savings during 

 the years when he is trying to accumulate enough 

 capital to enable him to invest in land. When 

 the time has come for him to make an investment 

 by paying half of the value of a piece of land from 

 the savings of many years, he is embarrassed by 

 the fact that while he has been able to get no 

 more than four per cent, for the use of his money, 

 he must pay six per cent, for the money which 

 he wishes to borrow. This should certainly be 

 enough to convince the farmer that something 

 is wrong. The important question is, Can any- 

 thing be done to remedy this condition of affairs ? 



Something has been done in other countries, 

 and there is no reason why something cannot be 

 done in this country to give the farmer a better 



