Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1912-10-15
TO HELP THE FARMERS.
President Taft's Plan to Reduce Cost
of Living.

OT LiNiHSs
Beverly, Mass, Oct. 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 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 financial ma
chine which would give him access to
all the money centers Of the world and
afford him credit at greatly reduced
rates and upon more advantageous
terms than he now receives. The COM
plete development Of our agricultural
resources 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 a means to secure
this country greater productivity, at
less cost, from the farms that are now
under cultivation, and, above all, to
give us more farms and more farm
ers."
The plan suggested Is based upon
the principles Of agricultural co-opera-
tive credit now in use in practically
every country of Europe. Uniform
state legislation, in the opinion Of
President Taft, Is essential to the sue
cessful adoption Of this plan and he
has invited the governors Of all the
states to a conference upon this sub
ject at the time Of the annual meet
ing of governors in Washington in De-
cember.
Were not the interval so short"
writes President Taft, my conviction
of the Importance Of this subject would
impel me to invite you to a conference
at still earlier date"
President Taft bases his recommen-
dations on reports submitted by the
American diplomatic officers In Europe
who have, since last March, been en-
gagged in an investigation Of this ques-
ton and upon the special report Of
Ambassador Myron T. Herrick, who
has made a study for years Of the
question Of adopting cooperative cred
it in the United States.
"A study of these reports" writes
President Taft, "and Of the recommen-
dations of Ambassador Herrick, which
am sending you, convinces me of the
adaptability to American conditions OF
the cooperative credit plan as set
forth in the organization Of the Raif-
feisen banks of Germany. The estab-
lishment and conduct Of such banks,
however, are matters for state control.
I suggest, also, the establishment OF
land-mortgage banks under state char
ters, and the formation Of cooperative
mortgage bond societies along the lines
of the Landschaften societies Of Ger
many, provided that uniform state leg
islation can be secured to govern their
organization and operation. AS a later
step, favor the enactment Of laws by
congress permitting the organization
Of national mortgage banks, to be
operated under strict government su-
pervision with the power to guarantee
and market the guaranteed debenture
bonds of the state landmortgage
banks or cooperative societies. I re-
commend for your consideration the
report and recommendations Of Am
bassador Herrick, now published by
the department Of state for general
distribution.
1.-The twelve millions Of farmers Of
the United States add each year to
the national wealth $S,400, 100000. They
are doing this on a borrowed capital
of s6,O4O, 900 OO0 On this sum they pay
annually interest charges of $510,000,-
900. Counting commissions and re-
newal charges, the interest rate paid
by the farmer of this country is aver
aged at 81 per cent, as compared to
rate of Al to 81 per cent paid by the
farmer, for instance, of France or Ger
many.
Again, the interest rate paid by the
American farmer is considerably high
er than that paid by our industrial
corporations, railroads, or municipali-
ties. Yet I think, it will be admitted
that the security offered by the farmer
in his farm lands is quite as sound as
supply it to the industrial corporations.
Why, then, will not the investor fur
nish the farmer with money at as ad-
vantageous rates as he is willing to
supply it to the industrial corporations
Obviously, the advantage enjoyed by
the industrial corporation lies in the
financial machinery at its command,
which permits it to place its offer be-
fore the investor in a more attractive
and more readily negotiable form. The