454 FA KM FINANCE 



does he possess, that is, what confidence can the lender 

 place in him for the materials or money to be advanced. 1 



Why is it that when a farmer asks for assistance from 

 one of the sources of supply, his credit is not regarded as 

 good as that of the average manufacturer ? A banker of 

 Stark County, North Dakota, as quoted in a recent issue 

 of The American Review of Reviews, says that often the 

 farmers are themselves to blame. 



" It is our belief," the banker says, " that the scarcity of 

 money and the high interest rates are largely due to poor 

 fanning. The people having money to loan know well 

 that our farmers here have an uncertain income, according 

 to their present methods of farming, and would expect a 

 much higher rate commensurate with the risk taken than 

 when they can find people where money can be placed 

 more safely. As conditions are now, some people have not 

 paid all their interest for at least three or sometimes for 

 four years. ... As soon as farmers can show that they are 

 safe and can take care of their obligations promptly, they 

 can command the lowest interest rates that may exist. 

 We believe it is more necessary to work on better farming 

 methods, encouraging them, than on better interest ra'tes ; 

 for the lower interest rates are the natural consequence to 

 better farming." 2 



We will now take up the main loaning facilities open to 

 farmers more in detail. 



328. The Country Store. The country store has always 

 exerted a marked influence on the business and social 

 activities of farm life. This influence, however, has often 



1 Credit has couie to be the chief instrument of business. Most of the 

 world's work is being carried on through credit. A manufacturer gives his 

 note in payment for the materials he must have. He expects to pay off the 

 note from the proceeds of the business made possible from these materials. 

 The note based on credit is a substitute for money. 



2 This view, of course, expresses the lender's side of the question. 



