New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-10-12
Mr.. TAFT HAS PLAN TO
LOWER COST Of LIVING
In Letter to Governors Urges
Legislation Favoring Amer
lean Farmer and Consumer.
FAVORS LOWER INTEREST
Scheme Based on Principles OF
Agricultural Cooperative
Credit in Use in
@. Europe

Beverly, Mass. Oct 11.-Radical legis-
| lation in favor OF the American farmer
and consumer as a means Of solving the
| question of the high cost Of living was
urged by President Taft to-day In let
| ter to the Governors of all the states
President Taft proposes to reduce the
cost OF foodstuffs on the American dinner
table by reducing the cost TO the farmer
of producing his crops. This would be
done by establishing In the interest OF the
farmer a financial machine which would
give him access 10 all the money centres
OF the world and afford him credit at
greatly reduced rates and upon more ad-
vantageous terms than he now receives.
The complete development Of our agri-
cult lral resources. which this would make
possible, thinks President Taft, would go
a long way toward settling the problem
Of the high cost OF living.
what this plan Offers" writes Presi-
dent Taft. lis a means to secure to this
country greater productivity. at less cost,
from the farms that are now under Gull
tivation, and, above all, to give US more
farms and more farmers" b.
The plan suggested is based on the
principles Of agricultural cooperative
credit now IN use In practically every
country of Europe. Uniform state legls-
lation, In the opinion of President Taft.
is essential to the successful adoption OF
this plan, and he has invited the Gov
errors Of all the states to a conference
on this subject at the time OF the annual
meeting OF Governors in Washington IN
December.
Were not the interval so short" writes
President Taft, my conviction of the
importance OF this subject would impel
me to invite you 10 a conference at a
still earlier date"
Based on Diplomats Reports.
President Taft bases his recommends
lions on reports submitted by the Ameri-
can diplomatic officers in Europe, who
have since last March been engaged IN
an Investigation of this question:. and
upon the special report Of Myron T. Her
rick, Ambassador at Paris, who has made
study for years Of the question OF adopt
ing cooperative credit In the United
States. President Taft writes:
A study OF these reports and OF the
recommendations OF Ambassador Herrlck.
which | am sending you, conVlnces me
OF the adaptabllity to American conll-
lions OF the co-opertiye credit plan US
set forth in the organization OF the Ratt-
feisen banks OF Germany The estap-
llshment and conduct OF such banks,
however, are matters for state control:
! suggest, Also the establishment OF
land mortgage banks under state CHAR
tiers and the formation OF cooperative
mortgage bond societies along the lines
49,
many, provided that uniform state lesis-
lation can be secured 10 govern their or
ganizatlon and operation. As a later step
favor the enactment OF laws by Con-
gress permitting the organization or ma,
tional land mortgage Dams 10 De operatte eS
under strict government supervision, with
the powe- TO guarantee and market the
guaranteed Gebcnture bonds OF the state
land moriga6e panAs or eo-opeIa'ISe s "a
cieties. J recommend for your consid-
GRAFTON the report and recommendalohs
OF Ambassador Herrck, now puolshed
by the Department OF State Tor senerai
The twelve millions o: farmers of the
United States add c1oh year to the ma
tional wealth $4,000 90. They are dolns
this on a borrowed capital OF B,o49 Wo,v0.
On this sum ,s,s sasS Bay annany commits.
sions and renewal charges, the interest
rate paid by the farmer OF this country
Is averaged NJ "a PEI cent, as compares
10 q rate OF ~. W oE NtB P"'N
the farmer FOR instance, OF France or
Germany.
Farmers Pay High Interest.
Again, the interest rate paid by the
American farmer is considerably higher
than that paid by our Industrial cor
porations, railroads or municipalities.
Yet think j. %ill DC ,ss a SaT mite in his
farm lands, is quite as sound as that
offered by Industrial corporations why.
then, will not the investor furnish the
farmer with money at as a snnlv 4, 10
the industrial corporations3 obviously,
the advantage enjoyed by the INDUSTRIAL
corporation lies In the financial machinery
at It's command. which permits II TO place
It's offer before the investor In more
attractive and more readily negotiable
form. The farmer lacks this machinery,
and, lacking II, he suffers unreasonaoiy'
This is not theory. -, -,
But the advantages to be gained by
the adoption Of this plan go beyond the
direct saving in interest charges TO the
farmer. The great necessity when
prompted the establishment and extension
OF this plan throughout Europe was that
OF checking the rapidly advancing In
creases In the cost OF foodstufrs, brought
about by the inevitable increase In con-
sumption and the failure OF the long
drained soil to afford a corresponding In
the people OF this country to-day-not In
40 severe q form as II threatened the
older countries or Europe, but stu as a
great and pressing economic problem
In Europe this problem has been sue
cessfully met, first, by reducing the cost
to the farmer Of producing his crops
and, secondly, by increasing hts produce
ton through the adoption OF improved
methods Of cultivation. Both the fed
eral and state governments In this coun-
try have done much TO afford the farmers
instruction In improved agricultural
methods. But II still remains for us to
reduce the cost OF the farmers produc-
ton by affording him the necessary cap
ital for the exploitation OF his soil upon
the most advantageous terms. He must
to adopt improved methods II must be
made profitable for him to place every
acre OF his ground under cultivation. This
offers the consumer relief from the In
creasing cost Of foodstuffs
President Taft strongly deprecates any
idea OF establishing cooperative credit In
the United States through the support Of
government subsidies. He says:
We must establish a credit system of,
for and by the farmers OF the United
States The country enjoys to-day great
prosperity, the factories are busy, the
workingmen are employed. and every
where the wheels Of Industry hum. The
farmer shares In this general prosperity.
sidlze the American farmer. Fortunately
for the country he does not need Il, nor
would he accept II.
President Taft warns the Governors that
In this plan, as In all financial schemes.
there is room for harmful exploitation for
personal GAIN adding: