Abstract

Rural Credits on Trial

This article focuses on the trial of the rural credits. It is unfortunate that the Government's advanced position on rural credits could not have been tried out at a more opportune time. Under normal conditions, when prices of farm products were not swollen by war demands and the farmer could look at his investment without being dazzled by visions of vast wealth, there would have been a real test of the land bank. Today, with wheat selling at from 1.50 to $1.80 a bushel, corn at 80 cents to $1, live stock breaking price records, and everything the farmer has to sell bringing exceptional figures, the margin of profit is too large to make interest rates a matter of moment. It is difficult to estimate the real effect of a nation-wide rural credit system and the degree to which the farmer will give it acceptance.