10 BULLETIN 409, U. S. DEPARTMENT OF AGRICULTURE. 
capital invested it is the duty of the adviser to visit the f arm from 
time to time to see if the plan adopted is adhered to and if the 
investment is yielding proper results. Such a plan means added 
protection to both the farmer and the banker. 
RELATION OF THE FARMER TO THE LOAN AGENCY. 
The banker often makes a difference in his interest charges between 
the regular patron and the man who is not a regular patron, other 
conditions being equal. If it is a question of favoring the one or the 
other, the banker generally favors his patrons. The farmer, there- 
fore, who desires credit on favorable terms at a bank usually finds 
it important to establish banking connections by opening a checking 
account. In this way he becomes familiar with banking methods and 
with the general banking requirements for the extension of credit. 
A farmer who maintains this direct relation with his bank will 
understand something of the need for a definite basis for his financial 
rating, and will realize the importance of keeping farm accounts so 
that he can make a fairly definite showing of his resources and 
liabilities and of his farm income. The value of this realization can 
not be emphasized too strongly, in view of the fact that relatively 
few farmers keep accounts sufficient to give them a knowledge of 
their farm income, partly because of lack of training and partly 
because of a disinclination for this kind of work. Moreover, niany 
farmers are occupied so completely with other duties that they feel 
they have fit tie time to keep accounts. 
Attempts are being made to overcome these difficulties in various 
ways. In one rather thickly settled farming region in Massachusetts, 
for example, the farmers have hired a bookkeeper cooperatively, 
who visits the farms and keeps the farm accounts. In certain States 
a plan has been adopted whereby the banker virtually becomes a 
bookkeeper for the farmer. Under this plan the farmer agrees to 
deposit all his receipts with the bank and to make all his payments 
by check. The farmer's deposit slip shows the source and character 
of each item, and there is a space on each check in which to indicate 
the purpose and character of the expenditure represented. Under this 
plan the banker is in a position to send the farmer a fairly complete 
monthly statement of his receipts and disbursements. 
HOW COLLECTIVE ACTION AMONG FARMERS MAY IMPROVE THEIR RELATIONS TO 
LOAN AGENCIES. 
In some parts of the country where farmers, if they obtained loans 
at all as individuals, were compelled to pay very high rates of interest, 
plans have been tried out under which groups of farmers have been 
able collectively, to establish improved relations with banks. In 
several localities of the Central Western and Rocky Mountain regions, 
