XIV. RURAL CREDITS 



QUESTIONS 



i. Is the rural-credit problem something which has come upon us 

 suddenly in the last few years ? Is the present agitation something 

 in the nature of a reappearance of a difficulty which had been acute 

 in the past, become quiescent, and then again broken out ? 



2. What was the time of the earlier manifestation of this problem ? 

 What were the circumstances which caused it to command public 

 attention at that time ? 



3. Was the real trouble at that time too great difficulty in securing 

 loans upon farm mortgages ? too lavish and easy extensions of credit 

 on western farms ? Is it possible that there were several somewhat 

 inconsistent phases of the matter ? 



4. What was the nature of the remedies advocated at that time ? 



5. Can you discern any significant change in the general outlook 

 revealed in present-day discussions of the problem ? 



6. What did the Census report of 1890 show as to the purpose for 

 which incumbrances were incurred ? Point out several of the signifi- 

 cant local or sectional peculiarities. 



7. Were the loans in the main for nominally productive uses? 

 Were these expenditures the most productive employment to which 

 capital could be put in the United States at that time ? Explain. 



8. In what sense could loans made for the purpose of securing 

 better dwellings, water supply, and the like, be said to be productive ? 



9. Might it be said that every effort of the farmer to make the 

 agricultural industry more productive tended to increase its capitaliza- 

 tion and to enlarge by so much the rural credit problem ? FrOm this 

 point of view were we better off before we had a rural credit problem 

 or after ? Would it be good policy to check the growth of agricul- 

 tural capitalization? 



10. Did the farmer who increased productivity profit by the 

 increase ? Did society ? Did any individuals lose ? Who, and how ? 



1 1 . What institutions for supplying the farmer with capital grew 

 up in the latter part of the nineteenth century ? Explain their method 

 of operation. 



12. Point out the beneficial character of their work. Indicate any 

 abuses which were allowed to creep in or harmful effects of their 

 operations. 



13. Was the borrower the only one to suffer from the unscrupulous 

 mortgage company? Can you draw a line between the evils of the 

 system and the sins of those who conducted its operations ? 



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