REFERENCES 465 



13. What objection is there to credit given by ordinary commercial 

 banks? 14. What are some of the characteristics of cooperative 

 land banks? 15. What did Herr Raiffeisen do for his neighbors? 

 16. Discuss rural credits in the United States. 



HOME EXERCISES 



1. Ask some one at home what the prevailing rate of interest is 

 and how long different kinds of loans are usually made to run. 



2. While it is very natural for people not to want the general 

 public to have too much information on their private affairs, yet it is 

 possible wit.hout giving the least offense to make a copy of blank 

 mortgages, notes, and other business papers of the farm and have the 

 copy brought to school for explanation. If no blank papers can be 

 found among the patrons at home, no doubt the local Justice of the 

 Peace would supply them. 



3. If some one would loan your father f 100 for six months for any 

 farm purpose, how much do you think he might make with the 

 money ? 



4. Would it pay to borrow $ 200 to buy improved farm machinery? 

 Figure this out on the basis of labor cost which would be saved. 



SUGGESTIONS 



1. One of the first needs of many farmers is to keep accurate ac- 

 count of their business operations. If the average business man knew 

 as little about the money end of his affairs as the average farmer 

 knows about his receipts and expenditures, there would be much more 

 financial distress to-day than there is. In most cases it is not necessary 

 to keep on paper an elaborate account of all minor farm operations. 

 Some transactions may be carried in the head. But the tendency is 

 to try to carry too much in the head. Farmers should have a simple 

 method of bookkeeping. 



2. Before a dollar is borrowed the purpose for which it is to be used 

 should be clearly thought out and discussed. Under the rural credit 

 system this discussion must be with the other members of the union. 



3. It will be easy to pay the interest on the loans, but the payment 

 of the principal is the main difficulty. Better not borrow than be 

 unable to repay. 



4. The main point to be brought out in the discussion of rural 

 credits is the long-term mortgage having low rates of interest with 

 repayment of principal in easy annual installments. 



