The Raymer enterprise., 1912-12-12
CREDIT SYSTEM IS NEEDED
Methods Employed BY American
F. armer Called Primitive and Way
Behind Those Of Europe.


European Rural Banking and Cred
1t Systems was the subject Of an ad
dress delivered before the Farmers
National Congress at New Orleans, by
Harvie Jordan Of Atlanta, Ga.
The speaker has made close study
of the way in which foreign farmers
have solved their financial problems
and the address was listened to with
keen interest.
Mr.. Jordan said In part:
THE credit system as employed by
American farmers is not only primi-
tive and out Of date. but 1t has per.
sistently kept the producers OF the
agricultural wealth Of the nation as
much enslaved, and as helpless in the
proper distribution OF their products.
as we're the peasants during the de-
cadence OF the Roman empire.
place the American farmer on tho
same footing as the European farmer
through his cooperative societies. his
rural banking systems. his marketing
methods and the use Of dynamic
money, and he will manage his affairs
with safety to himself and satisfac-
tion to the public at large.
I'VE must establish a credit system
OF. for and by the farmers OF the
United States. And this system must
be put into practical operation by the
cooperative efforts OF the farmers
themselves, under the enactment of
wise, safe and sound state and federal
laws.
While commerce has all the active
or dynamic dollars at Its command,
our great agricultural interests have
but little, II any kind Of money at
their command, and that little is most
ly static or dead money. which is
capable OF being turned over but once
a year.
1T is believed that this can be
successfully done by adopting the
methods employed In European coun-
tries through their systems Of rural
credit banks.
The Raitieison system OF banks in
Germany are small banks. organized
by small farmers In local communi-
ties. and the business done is on
loans granted upon ,the plan Of un-
limited liability. that Is to say, each
loan to each individual member OF the
bank Is guaranteed by Endorsements
Of all the members constituting the
shareholders OF the bank.
This system Of small banks in
Germany last year did a business ex-
ceeding one billion five hundred mil.
lion dollars, without losses and an in
terest charge not exceeding 4 per
cent.
These small banks are not operat-
ed primarily for the purpose OF max.
ing big dividends or paying large sal.
aries, but for the purpose Of main.
tanning a medium for financing the
membership Of the institutions with
ready capital when needed In the con-
duct Of their farming operations.
"The Schultze-Delitsch system Of
banks are known as the popular urban
banks and are operated somewhat aft
er the fashion Of our present country
banks. only tho stockholders are much
more numerous and the rate Of inter.
est does not exceed 1 per cent per
annum.
THE Landschaften system Of banks
are under the direct control and
operation Of the landowners Of the
various provinces where they do busi.
ness. These are the strongest and
most powerful rural banks In the
whole Of Europe. and under this plan
the system Of doing business is sub.
stantially the same as that Of the
American merger or trust corporation.
''In Germany alone last year, these
three systems Of agricultural cooper.
ative banks did business among
the farmers OF over five billion dollars,
and Germany is hardly twice the size
OF an American state.
III this commission should be able.
after thoroughly investigating the
European rural banking systems. to
devise practical plans for meeting the
requirements for an abundant supply
Of ready money for producing and
marketing our farm products, they
will succeed In lifting the yoke from
American producers, and lay the
foundation for revival In the inter.
est Of agriculture which IL essential
in working out scheme for the right
kind Of progress among our rural pop.
ulation."