26 BULLETIN 1048, TJ. S. DEPAETMEISTT OF AGEICLT^TURE. 



merely for tlie purpose of making a crop, but to give him a start in 

 efficient production so as to enable Mm to acquire a working capital 

 of Ms own. When tie has accumulated all the capital he himseK can 

 profitably use, he contmues to save a part of Ms mcome and at a 

 reasonable profit to himself assists in supplying thiose less advanced 

 than himself with the capital that they need. It is only where a 

 spirit of energy and thrift prevails in a commumty, whether agricul- 

 tural or industrial, that real progress in prosperity and well-bemg is 

 made — a prosperity that is shared by all whether they are engaged 

 in a profession, m trade, or m agricultm'e. 



One of the greatest defects of bank loans to farmers under existing 

 conditions is that credit is not available for such a length of time as 

 is frequently needed by the farmer to mature Ms products and to 

 market them in an orderly manner. For the production and market- 

 mg of crops, loans for a term of from 8 to 12 months are frequently 

 needed, and the producer of live stock, as contrasted with the feeder 

 or finisher of such stock, often needs credit for a period of from 1 to 

 3 years. To obtain a loan under existmg conditions, farmers not 

 infrequently are obliged to agree to repay the same at a time prior 

 to that at wMch they have any expectation of bemg able to meet it, 

 and to rely on the hope of bemg able to renew the loan when it falls 

 due. Such a state of affairs is discouragmg at the best, and often 

 leads to serious results for the borrower. At present, as shown by 

 Table 7, the maximum term with nearly half the banks is 6 months 

 or less, and oMy m the case of a very small percentage of the banks 

 are loans made for a year or more. Some means must be found for 

 providkig the crop and live-stock producer with credit running for 

 such term as the nature of their busmess demands. 



ADDITIONAL COPIES 



OF THIS PUBLICATION MAT BE PROCUEED FROM 



THE SrPEEINTEXDENT OF DOCUMENTS 



GOTEENMENT PRINTIN-G OFFICE 



■SVASHINGTON, D. C. 



AT 



5 CENTS PER COPY 

 V 



WASHINGTON : GOVERNMENT PRINTING OFFICE : 1922 



