12 BULLETIN 409; U. S. DEPARTMENT OF AGRICULTURE. 



farm-loan business, while the farmers of their vicinity generally are 

 obtaining loans on better terms than those living under similar 

 agricultural conditions elsewhere. 



It is realized that the farmers in some sections of the country are 

 accustomed to carrying check accounts with banks and are as familiar 

 with the requirements of banking relations as other business men. 

 There are other regions, however, where many farmers have not had 

 such experience in commercial matters and where the bankers could 

 be of practical assistance in making the farmers better acquainted 

 with banking methods. The banker should remember that the 

 farmer is not subject to the periodic visits of an examiner, requiring 

 that certain matters receive attention promptly within definite time 

 limits. This is one reason why farm el's do not always realize the 

 importance of meeting their obligations on specified dates. One plan 

 that has proved helpful in this connection is to have the banker give 

 the farmer the benefit of ample written notice with reference to the 

 maturity of interest or other payments. 



Existing bankmg methods and practices as related to farm loans 

 are often criticised by reason of the unwUlmgness or inabiUty of 

 certain bankers to carry over farm loans until the farmer is prepared 

 to meet his obligations. Complaint is often heard of cases where a 

 banker, with a little extra effort, could make arrangements to carry 

 over the loan of some farmer patron, but where in fact an apparent 

 indifference to the weKare of the farmer is shown. It is interesting 

 to learn, however, that many bankers manifest exactly the opposite 

 attitude, and use every resource at their command, includuig such 

 assistance as they can obtain at larger financial centers, in order to 

 carry over their farmer patrons until such time as payment on loans 

 can be made conveniently. 



Where banks are active in developing farm-loan business they 

 realize the importance of understanding the requirements of safe and 

 progressive agriculture and also the importance of educational work 

 among farmers in the interest of improved agriculture. Such knowl- 

 edge gives the banker a better understanding of the merits of farm 

 loans and at the same time tends to raise the standard of farm-loan 

 paper. These considerations not only make possible a safer and larger 

 loan business for the banker but also lead to a decrease in the interest 

 rates paid by the farmer. 



WASHINGTON : GOVERNMENT FEINTING OFFICE ; 1919 



