Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1912-10-12
IN FAVOR OF THE
AMERICAN FARMER
TAFT WRITES TO GOVERNORS
OF ALL STATES
Proposes to Reduce Cost Of Food
stuffs on American Dinner Table
by Legislation to Reduce Cost Of
Producing Farmers Crops.
Associated Press.

AeSOcldteQ HreSS.
/ Beverly, Mass, oct.a 11.-Radical
legislation 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 today in letter to the COVER
nors of all the state.
President Taft proposes to reduce
the cost Of foodstuffs on the Amer
lean dinner table by reducing the
cost to the farmer of producing his
crops. This would be done by estab-
fishing in the interest Of the farmer
a financial machine which would
give him access to all the money CEN
tiers of the world and afford him
credit at greatly reduced rates and
upon more advantageous terms than
he now receives. The complete de-
velopment of our agricultural re-
sources which this would make pos
sible, thinks President Taft, would
go a long way toward settling the
problem Of the high cost of living.
What this plan offers" writes
President Taft, is means to Sc
cure this country greater productiv-
ity, at less cost, from the farms that
are now under cultivation, and,
above all, to give us more farms and
more farmers
The plan suggested is based upon
the principles of agricultural coop
erative credit now in use in practic
ally every country of Europe. Uni
form state legislation, in the opinion
of President Taft, is essential TO the
successful adoption of this plan and
he has invited the governor of all the
states to conference upon this sub
ject at the time of the annual meet
ing Of the governors in Washington
in December.
Were not the interval so short, =
writes President Taft, my convic-
tion OF the Importance Of this sub
ject would impel me to invite you
to conference at a still earlier
date.
President Taft bases mis- recon-
mendations on reports submitted by
the American diplomatic officers in
Europe, who have, since last March,
been engaged in an investigation of
this question and upon the special
report Of Ambassador Myron IT, Her
rick, who has made a study for years
Of the question Of adopting copera-
tive credit in the United States
"A study Of these reports" writes
President Taft, "and of the recon-
mendations of Ambassador Herrick,
which | am sending you convince me
of the adaptability to American con-
ditions of the cooperative credit
plan as set forth in the organization
of the Raiffeisen banks of Ger
many. The establishment and con-
duct of such banks, however, are
matters for state control. | suggest,
also, the establishment Of land mort
gage bond societies along the lines
Of the Landschaften societies Of Ger
many, provided tina tuniform state
legislation can be secured to govern
their organization and operation.
AS the later step, | favor the enact
ment of laws by congress permitting
the organization of national land
mortgage banks, to be operated un-
/ der strict government supervision
with the power to guarantee and
market the guaranteed debenture
bonds of the state land mortgage
banks or cooperative societies.
recommend for your consideration
the repor. and recommendation OF
Ambassador Herrick, now published
by the department of state for gen
eral distribution.
Enormous Wealth Produced by
Farms.
"The twelve millions of farmers OF
the United States add each year tc
the national wealth ss,400, 900, 900
They are doing this on borrowed
capital of 5000, 900. 900. On thi:
sum they pay annually interest
charges of $4,000. 900 Counting
commissions and renewal charges
the interest rate paid by the farmers
Of this country Is averaged at 5 IL
per cent, as compared TO rate Of
9 IL to 4 IL per cent paid by the
farmer. for instance, Of France and
Germany.
Again, the interest rate paid By
the American farmer Il considerably
higher than that paid by our indus