136 
FLORIDA STATE HORTICULTURAL SOCIETY 
a bank has lent so much of this money and 
begins so sell its bonds, it begins to be an 
endless chain. To keep this endless chain 
going, it must have the confidence of the 
people of the country. 
We are figuring this bank in Kansas 
will have to turn over its capital of $750,- 
000 every few weeks. If we could issue 
one large issue of bonds and put it be¬ 
fore the country and be done with it, the 
matter would be simplified, but we are 
going to be on this bond market every few 
weeks forever, and we cannot afford to 
have any bonds come before this country 
that there will be the slightest question 
about. 
I hope these men who are interested in 
the farm loan question, will realize that 
they alone make the first valuation of 
their lands. After that comes the ap¬ 
praiser, and yet these men should realize 
that the whole system depends on these 
bonds, and that they ought to look at this 
thing with a cold-blooded view, to make 
these bonds safe. 
You doubtless can comprehend that in 
every state, the people who live in it think 
that their state is the best and that their 
land is the best. This is a very pardon¬ 
able pride. I sincerely hope if there are 
any growers here, that you will see that 
you look at this thing from an entirely 
reasonable point of view, and value your 
lands at actually what they are worth. 
I should like very much down here to¬ 
day, to get an idea from some of the 
bankers here, just to ask one or two ques¬ 
tions. I do not ask these questions with 
a view to criticize or with a view of 
“knocking,” but I would like to know this : 
we are told that some of these groves are 
worth $1,000.00 an acre. I have no 
doubt they are. Now, I would like to 
know what the local banks will lend on 
these groves on their valuation. May I 
have an answer ? 
Mr. Gillette: No local bank in Florida 
would loan $500.00 per acre on any grove 
that I know of. 
Mr. Smith: That is one of the points I 
wanted to be assured of. 
Mr. -: I would state that I have 
borrowed $600.00 per acre from the banks 
on my grove on short loans. And the 
bankers, when it came due, were willing 
for it not to be paid then, but were willing 
to carry it. 
Mr.-: I am attorney for a bank, 
and I know they will lend more than $500 
per acre on grove property in our section 
of the state, that is, productive groves. 
But they will not lend for long terms and 
they must be assured the man who bor¬ 
rows the money has other security to pay 
back the loan. 
Mr. Smith: There is one other point 
that is well worthy of a little consider¬ 
ation. 
Under the present system of lending, 
where a man goes to a banker, the moral 
risk has a great bearing upon the matter. 
If the banker knows that man is person¬ 
ally all right, that he understands his busi¬ 
ness, he may, in many cases, give him a 
considerable loan to carry him for a few 
years. But we are making these loans for 
thirty-six years, and the moral risk at the 
time the loan is made may be safe. But 
later on the man who borrowed the money 
may not live the thirty-six years and some¬ 
one else may get hold of the place and it 
may not be good security. 
