Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-10-14
Easier Money for Farmers.

Whether Maine farmers are follow
crs of4President, Taft or not. they will
agree with him in the letter he has
just written to the governors of1all the
states. In this letter. the President
urges radical legislation in favor OF
the american. farmer, With the con-
sumernasi,a1 direct sharer in the pro-
fits. tits, as7mesInstse frequently urged
in the last two years, the direct, prae-
teal means of reducing the high cost
of living-make farming attractive and
profitable, and do away with unseru-
pulous and greedy middle men who
now manipulate both ends of the mar
ket for their own gain.
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 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
long way toward settling the prob
1..... .e ha n ;ol. re t,,rr
What this plan Offers writes Pres
ident 1'aft. a..is 4 means to secure this
country greater productivity. at less
cost, from the farms that are now I'M
der cultivation, and, above ali, to give
us more farms and more farmers"
The plan suggested is based upon the
principles of agricultural cooperative
credit now in use in practically every
country of Europe. Uniform state leg
is essential to the successful adop-
ton of this plan and he has invited
the governors of all the states TO a
conference upon this subject at the
time. OF the annual meeting of gov
ernors in Washington in December.
President, Taft bases his recommen-
datiohs 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 this
question of adopting cooperative credit
in theiUnited States
"a study of these reports" writes
President Taft. iand of the recommen-
dations of Ambassador Herrick, which
] am sending you, eonvinces me OF
the adaptabiIity to American condi-
tions Of the cooperative credit plan as
set forth in the organization of the
Raiffeisen banks of Germany. The es-
Establishments and conduct of such banks
however, are matters for state control
i suggest, also, the formation of coop
erative mortgage bond societies along
the lines of the Landschaften societies
of Germany, provided that uniform
govern their organization and opera
ton. AS a later step, | favor the en-
actment ofitlaws by Congress permit
ting the organization of national land
mortgage banks, to be operated undel
strict government supervision with tn
power of guarantee and market tn
guaranteed debenture bonds of til
State land mortgage banks or cooper
alive societies. / recommend for you
consideration the report and recon-
mendations of Ambassador HerricR
now published by the Department 0
State for general distribution.
.sThe twelve millions of farmers o
the United States add each year TO tn
national wealth ss.4o0,00O,o0 900. The
are doing this on q borrowed capita
of 5.04o, 900 900. On this sum they pa
annually interest charges of $4,000,
600. Counting commissions and renew
al charges. the interest rate paid b
the farmer of this country is average
at 81 per cent, as compared 10 a rat
OF ~ to 3iR per cent paid by the farm
er. for instance. of France or German!
"Aaain, the interest rate paid by tn
American farmer is considerably high
er than that paid by our industris
corporations. railroads, or municipal
ties.a Yet. / think. ii will be admitte
that the security offered by the farme
in his farm lands Is quite as sound
that offered by industrial corporation
Why. then, will not the investor furn
ish, the farmer with money at as ad
vantageous rates as he Is WILING !
supply it to the industrial corpora
tionsa obviously the advantage enjoy
ed by the Industrial corporation lie
IN the financial machinery at its com