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THE BAKU’S PART IN
THE FARM PROBLEM
By H. LANK YOUNQ
| Member American Banker* Associa
tion Agricultural Commission
of the most discussed and least
O NE understood
questions regarding
"1
5
the termer’s problems Is the part the
bank has played,
or Is to play. In
y^R R ^k
I fin an cin g
the
farmer. The basis
fe?
of co-operation
-M tR li
between the two,
jP R H K i
however, Is a very
,
simple one.
Both sides are
\
subject to
clsm for the con-
dltlon that exists
today. The major
ehare of the blame
rests on those
H. Lane Young
banks that have
failed through disregarding funda
mental principles in loaning other
people's money, that have encouraged
the farmer to expect bank loans with
out first putting his business on the
earning basis which would justify a
bank to lend him money.
One of the underlying reasons for
the failure of so many country banks
has been the existence of too many
banks. With the limited business of
the commmunity divided among too
many banks It was impossible for them
to make enough money to justify the
employment of officers with the proper
ability to manage the bank success
fully. Then the scramble for business
was so hard that good judgment and
foresight wore forgotten In granting
loans, with the resultant failure of
the weaker Institutions.
In the future, banks are not going
to loan the money of their depositors
■without the kind of security that can
be immediately realized upon in case
the loan is not paid, or unless the ap
plicant presents a sound and success
ful record of business operation—
whether that business be manufactur
ing, merchandising, or farming.
Farming-Bank!:.] Interdependent
This Is a perfectly obvious attitude,
because country banking cannot be
successfully and profitably carried on
unless farming Is successfully and
profitably operated—the two busi
nesses are dependent upon each other.
There is no longer any question that
the time has arrived for these inter
dependent businesses to reach a com
mon ground of understanding of the
requirements that both must meet for
their mutual welfare.
There is no doubt but what the fu
ture prosperity of the farmer and the
basis of cooperation between banker
und farmer Is the Intelligent diversi
fication of crops. It h necessary, how
ever, to have tho right conception of
diversification.
The mistake that many farmers
have made In attempting to diversify
has been to invest too much money,
time and land In u new and untried
crop—sometimes a hazardous crop, or
one for which no Immediate market
has been developed, resulting in a loss
of tho Initial effort and discourage
ment of future efforts on a more con
servative basis.
Disregarding the primary and essen
tial principle of farming—namely. In
creasing earnings by decreasing the
cost of production through the prac
tice of building up soil by crop rota
tion and intensive cultivation, is re
sponsible for a large share of the
farmers’ trouble today.
A« An Agriculturalist
Sees Farm Board’s Job
The new Agricultural Marketing Act
approaches farm relief from a materi
ally different point of view from that
of former bills before Congress In re
cent years, says Dean H. L. Russell of
Wisconsin University College, ef Agri
culture la the American Cankers As
sociation Journal.
"It contains a new Idea, fraught with
the greatest possibFitiea—the organi
sation of a Föderal Farm Doard,” he
eays. "It has been possible for farm
cooperatives to borrow from Federal,
aided institutions before, and at a ma
terially lower r.-.to thc-i city business
men had to pay for working capital,
hut this is the first set-up made by
tho government In which a commis
sion has been carefully chosen to give
undivided attention to an effort to
solvo the problems of a farm group.
"It Is hard to cnncrlro of a higher
degree of responsibility than must ha
assumed by this commiszlcn. No board
ever created by congressional action
has beon clothed with as wl-le plenary
powers. It la authorized r.ot only to
advise but to execute, to plan and put
Its plans into effective action, to buy
and hold, to dump, to dip Into the
Federal treasury to accomplish Its
ends with what would he almost un
limited resources to any private com
mercial concern. The beard's only
Job ki to succeed, and no ¿ovens-
mental agency even during the w.vr
time emergency had a wider latitude.
“Many will think the farm relief
program will he universally appllcab'e
to the lndtvldn.l land owner or oper
ator. Serb procedure is far from the
case. Aid Is to be extended through
cooceratlve organizations by making
It possible for such groups to obtain
rash advance.) to hold crops so a* to
permit of more orderly marketing.
“While the pr'mary relation is with
cooperatives, th^ t"dlvldnal or unor
ganised firmer will also profit by the
activities of hl* organised fellows. If
a rabilieed program of merchandising
V able to ell-ulnat. the surpluses that/
f— r r ~ — :----=•
exert such depressing Influence on
prices the general price relatlou
should be Improved. It this ocean the
Individual farmer should also benefit.
“It Is here the government Is pro
posing a novel attempt In eoonomics.
Through stabilisation corporations tor
each commodity It Is proposed to
make possible the handling of tho
surplus so as to lessen Its disturbing
Influença on prices. With rion-perlsh-
,able products such a program "Is, of
eoune, conceivably possible, but one
wonders what would happen If a sta
bilization corporatloa.had to handle a
perishable crop in great quantities.
“Is it going to bo possible for a sta
bilisation corporation to stabilUbT It
would be one thing if It had merely to
stabilize the «American situation, but
often that situation la complicated
with world conditions. Perhaps tba
very fact that such a stabilisation cor
poration is In position to function may
have a steadying effect on the market.
“Markets respond to psychological
stimuli as do Individuals. The vary
fact that the government has now def-
lnltely stepped Into the breach with
all of Its resources available to make
the new plan work will exert un
doubtedly a strong stabilising effect.
“It would be presumptuous to fore
cast what the ultimate effect of the
new act will be. It can, however, be
definitely stated that la the present
plqn much of the philosophy that had
been so drastically criticized as eco
nomically unsound has been elimi
nated. The existing plan Is worth
trying. It will undoubtedly cest the
Federal treasury no Inconsiderable
amounts of money, but if It produces
the hoped-for result It will have beea
well woTth while.”
BANKING FINDS THE
WAY’ TO SAFER ERA
By FRANK W. 8IMM OND8,
American Bankers Associstlen
In considering the banking situa
tion throughout the country, the fact
should be kept in mind that while one
bank In ten failed during the past
eight years, it Is far more Important
that nine banks out of ten, operating
In the same general field, serving the
same communities and meeting al
most Identically the same problems,
weathered the economic storm of re
adjustment successfully. This achieve
ment cannot be ascribed to any ele
ment of luck, but rather to consistent
adherence to sound banking principles
and profitable practices. Through
worthy and efficient management they
met the Issues and problems confrdnt-
lng them, squarely and successfullv^
Banking Is regarded as the keystone
of eur entire business structure, hence
bank failures are rightly regarded as
Intolerable public calamities that must
absolutely be prevented. The three
major objectives of all lnter-bank or.
ganlsations, whether local, county, dis
trict state or national, are to make
backing safer for all concerned and,
through Increased efficiency in bank
management and supervision, to lessen
or eliminate all forms of losses so that
greater rewards may accrue to bank
ing and better service to the public.
There Is definite evidence throughout
the country of a strong and growing
spirit of cooperation among bankers
and banking organisations, which Is
resulting more and more In strength
ening the work of all.
Clearinghouse associations among
banks in city, county or district groups
undoubtedly constitute the chief line of
defense against bad banking practices.
They have.demonstrated that they are
the principal factor In bringing about
reformation in banking regulations.
Improvements in banking methods and
the observance of sound banking prin
ciples. For many years the primary
purpose of a clearinghouse association
was the clearance of checks, but today
It is the clearance of banking Ideas
and the solution of banking problems.
Clearinghouses supply the local ma
chinery essential for setting up and
putting in practice necessary stand
ards and uniformities. There are now
435 clearinghouse associations In cit
ies, towns, counties and groups of
counties In the United States.
Men today are more Intelligently
group-minded than ever before. Bank
ing Is combining the best elements of
competition with sound group action.
By virtue of this combination, individ
ual thought has much wider possibili
ties of expression. In general, group
action has not stifled but has stimu
lated Individual thinking and Initia
tive. Better lnter-bank organization
and relationships afforded by clearing
houses would have undoubtedly shred
many Institutions that have suffered
failure 1® the past. The clearing
house activities of the American Bank
ers Association are conducted for the
purpose of encouraging ever widening
cooperation along fundamental princi
ples and practices among banks
through clearinghouse associations.
Bankers In every city, county or dis
trict can, through the agency of a
clearinghouse, promote better, safer
and more profitable banking and also
serve their communities better.
There never was a time when suc
cessful bankers were so alert to the
value of team work for putting the
entire banking structure in prime con
dition. Sound bank management le
the order of the day. Constructive
cooperation is more than a sentiment,
I* ts an economic necessity a maUei
Condon, August 21. Mr. Rodda 1*
Mr. and Mrs. A. L. Douglas left
Mr. and Mn. W. E. Elder sad Mr.
now employed on tho J. B. Saylor tor Ione laet Monday to look after and Mrs. Morton Elder were guests
ranch on upper Butter creek while ineresta on their wheat ranch in that at the C. M. Jackson horns last Sun
Bert Quick will help his father Harry section.
day. Their home la at McKay dans.
Quick erect a new twelve foot alio.
Among those who attended the
Mr. and Mrs. A. L. Douglas went
An Important land transfer was Three I and 0 picnic were Mr. and
to Athena August 19 to visit relatives consummated last week when Guy Mrs. F. B. Pennock, Mr. and Mm.
They were accompanied by a daugh Cronk purchased the 20 acre Peyton Norman Pennock and Mr. and Mrs.
ter, Mrs. Ruby Ward, of Portland Boone place. This place which ha3 W. G. Dyer and their five children.
and her son, Donald James, who is been vacant for several years has Mr. and Mrs. Dyer and four of their
on a furlough from the navy. Mr. one of the finest barns to be found children claim Ohio a* their birth
MINNEHAHA NEWS NOTES ♦ and Mrs. Arthur Dougins and daugh
on the entire project. It was built place.
♦ Mrs. M. T. Matott, Correspondent 4>
ter, Marjorie, and son, Aaron, of to house about 30 cows and has two
The Ugo Igo club will hold their
Athena spent Tuesday night at the large silos. Mr. and Mrs. Cronk who September picnic at the home of
Douglas home here
and
left contemplate keeping a dairy herd and J. M. Prlndle Thursday, Sept. 6.
Btekeepera of .Minnehaha both for Portland Wednesday morning
raising turkeys will be a welcome ad
large and small are not only blessed with Mrs. Ward and Mr. James. Ar
dition to our neighborhood. Mr. washed out last week and M. T .
with a heavy crop of honey this time thur Douglas is a prosperous wheat
Frank B. Pennock who has been look Matott la still wondering why hw
but are anticipating the best price rancher of the upper country.
ing after the place for the past year, asked him if he knew who did It.
>in years. Due to a partial failure In
handled the details on behalf of the
'the California crop It looks as if they
Mr. and Mrs. G. C. Crowner of Pen heirs. Miss Virginia and Peyton
( will receive as high as ten cents per dleton were Sunday guests at the
Boone, who live in the east.
pound In carload lots for the best home of Mrs. Crowher’s son, Chester
! grade of honey and much of the flow Flannigan.
Mr. W. G. Rodda appeared sad the
1 was of that grade. Those who have
other day and inquiry disclosed that
experimented with sweet clover pas
Mr. and Mrs. Roy Pearson and the Three I and O picnic made him
ture for their dairy herds have dis children Frnnk, Annie and Grace and
sad because coming from New Zea
covered that when pastured closely It Mr. and Mrs. Wiley Pearson and son
land he has no one to frolic with.
¡blooms continuously thus providing David, spent Sunday at the home of
Plans are under way to give him a
an abundant source of nectar for the their mother, Mrs. Lena Pearson at
one man picnic where not even Clara
! bees which produces an unusually Echo.
Bow will have anything on him for
I will have a specialist In th-
clear, well flavored honey.
he will have “It” and be "It.”
treatment of rectal «“J throat di.
Mr. and Mrs. Cleve Clark made a
ease by non-Surgical Ambulant
Dr. and Mrs. James A. Campbell business trip Io Pendleton August 19.
Mr. and Mrs. J. M. Prlndle re Methodh who will make a thorou 1:
and sons Jimmy, Jack and Bruce of
turned from Portland last week In a examination of your condition with
While m. kinr the rounds of his new Hupmobile six sedan.
Hanford, Cal., were guests at the E.
out charge.
L. Jackson home last Friday and duties as cow tester. Mr. Ernest
Painless, Bloodless H im lnafon »
Saturday. Dr. Campbell, who was HouRer stayed at the E. L. Jackson
Miss Madge Quick who has been
Piles
and Tonsils without hospital «
formerly a dentist in Hermiston, Is home this week.
spending the summer with her par pense or serious loss of time.
a cousin of Mrs. Jackson.
ents, Mr. and Mrs, Harry Quick, left
This specialist has handled sever
Interests on their wheat ranch In that last Friday for Noma Linda, Cali
al
cases In Pendleton in the past year
Mr. and Mrs. R. E. McFalls made | and «ons were breakfast guests of fornia, where she is a student of and Is highly regarded as to results—
Mr.
and
Mrs,
C.
Si.
Jackson
August
medicine
at
the
Adventist
college.
a business trip to Pendleton Aug. 14. i
They have been spending some tim e' 24. Mrs. Jackson were chums and
HE KNOWS HIS STUFF
Mr. and Mrs. Walter Garner and
In fixing a circle driveway Into their roommates several years ago.
Take advantage and be well for
children Zelma, Lyle and Gene, spent
garage this last week.
Round-Up.
Mrs. Jessie Hesser returned to her Sunday In Echo at the home of his
Mrs. James Turner of Gresham home from Newport and other coast parents. Mr. and Mrs. J. P. Garner.
was a guest at the Andy Douglas points the first of the week. Her They were accompanied home by Miss REMENMEE THE DATE AUG. 31
Mr. brothers, Clare and John Lemon, who Ruth Hudson who with her parents,
home the first of last week.
Douglas and Mr. Turner have been have been visiting here from the oast Mr. and Mrs. J. E. Hudson, and sis
for some time are returning to their ter, Miss Eula, are visitors here from
friends for many years.
home In Kansas by way of Califor Idaho. Mrs. Hudson and Mr. Gar The Best Equipped Physiotherapy
Office in Pendleton.
Wm. Rodda and Bert Quick re nia and Nevada.
ner are brother and sister.
turned from the harvest fields at
Phone 706.
Over J. C. Penny Store.
1
1
■ ■
.......
of enlightened self-interest, and suc
cessful bankers more and more are
utilising the agency of constructive
group action In developing and estab-
: lishing necessary standards and uni
formities In banking practices. Each
year banking is becoming more of *
science end attaining higher profes-
elonal standards.
if you have Piles or
Diseases Tonsils
Come to M y O ffice
August 31
D r. W . Boyd W hyte
H âve ym r tr ie d
R IC H F IE L D
A
performance in traffic and on the, straightaway'
'i ...under all driving conditions!
I
<
aid difference there is in
, Y o u can’t realize what aj
gasoline until you have trie
(tied this new Richfield.1,
FREE COAL?
j Developed by Richfield af^er three years con- ‘
slant research, it is notably different from any
other, on the market.jTo yds fuel has been
SOUNDS too good to be true, doesn't t i! But that’s exactly what we
are doiifg—giving away coal to the luoky people of this community who
purchase an Estate Heatrola in the Eighth Annual Heatrola Free Coal
padded ETH YL fluid, the on|y genuine anti-knock,
< compound for high ^compression motors.
Club—August 10 to 31.
Every member of this Free Coal Club will receive, without a penny of
cost, a ton of our finest grade of coal—a grade especially selected for
use with the Heatrola.
Of course, there is no obligation, br,t while we are delivering your ton
of F r e Coal, why not have ns put in your entire winter supply! That
will assure you ofuniformiy good coal for your Heatrola throughout the
winter. You will escape possibility of having to pay a higher price
later on—you will enjoy hat com
fortable and secure feeling that
comes from having the coal bin fill
ed and waiting before the snow flies.
With an Estate Heatrola and a bin
full of our coal you will be assured
of a cozy home the whole winter
through.
If yon are a member of the 1929
Free Coal Club, phone us today and
tell ns how many tons to deliver
along with the ton which you re
ceive free. If you haven’t yet join
ed the Fee Coal Club, get the details I
of this unusual offer at once fremj
the Heatrola dealer whose name is
given below.
Tum-A-Lum Lumber Co.
—DI8TKIB1T0KS OF FREE COAL FOR—
Oregon Hdwe. & Implement Co.
W
/V.
Want as to bring you
some
Be R eady for Winter
V » ’
»««»'»store for yon 77 V ahair» ,
trigger responseVwhen^pu stepson the '
throttle, oceans o f power*on hills, a flashing*
»
If you drive a high edmpresston ear with'prop
erly advanced spark,* yon asaut nsa an
V gasoline... Rwhfeeld-Ethyl is Ethyl at its beeil it
you drive anv « up , this new Richfield will give
Zi you a performance different and finer than you
have aver had/
I S ;
P 'ryUÜ* - u .
-
“am___
the cream striped R ich feeU -M yi p a n ? nod
prove the difference for yónrself!^,
£T H Y <
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