The evening world. [volume] (New York, N.Y.) 1887-1931, 1912-10-11

cent, yet " mas declared dividends or
per cent? for the last ~ years.
HOW A FARMER 10 CARED FOR
IN OTHER COUNTRIES.
France has only one land mortgage
concern where the largest agricufturo,
credit Is supplied-thc Credit Foncier.
II groups the various local banks to-
gether and helps to finance them. The
Credit Foncier IL an Incorporated COM
pany with capital of 900. OoO. 900 francs.
The loans which the Credit Foncier
make TO land owners. for the most
part run for long periods-ten TO seven
ty-five years. and are secured by mort
gage.
The long time loans are repaid In tho
form OF an annuity which covers the IN
tercs; and partial payment OF the
principal. At the present time the rate
OF interest which It holds. the Credit
Foncier creates and sells bonds that
have a very wide and favorable market.
Tho local mutual credit banks and the
regional banks secure the greater part
OF their working capital from the State
In 1910 the regional banks had n paid
up capital OF tiS. 800. 90 francs. State ad-
vances amounted TO to.%oo.oo0 francs
and deposits to 100000 francs. Other
countries of Europe have developed
agricultural credit societies along lines
very similar &C. the Wrench and German
institutions.
I'm America the farmer. strange
70 say, pays . higher rate Of N
tersst for his money thaA almost
any other class Of investor IN the
country, while In Europe he farmer
secures loans on the same basis -
the biggsst railroad, Industrial COR
poration, or municipality. In spite
Of vast arsss Of land undsvslopsa
sufidient to maintain countless
Numbers OF people, yst We are COM
planning OF the increase Of prices"
HOW UNITED STATES COULD
"BACk UP" THE FARMER.
What would be the mode Of pro-
| cedure?" ! asked.
1.-THE great need Is to establish an out.
let for mortgage and farm securities,
thus producing an international market
for them. There should he large cen.
trail company with banking privilege,
| to sell IT'S bonds at home or abroad with
branch companies for the collection Of
mortgages and farmers paper. these I,
be turned to the central company with
guarantees. This would seem q prope
system for the United States. or cours,
II requires large capital. but money ha
usually been easily found for all big pro
Jects In America that there are goo,
prospects OF success.
"Such q company. under the man
sgement Of public spirited men. woul
undoubtedly meet with success. II
establishing lower interest rates In tn
South and West II could procure mos
safe and sound mortgages than II coul
handle. An active market would d.
velop for bonds at per cent. In Amei
. lea and 4 or ~ per cent. In Europ,
which would give considerable margl
for profit The large European bon
and mortgage companies pay dividend
OF . per cent and over a margin
one-fourth OF one per cent. OF she
. transactions.
, New York City companies obtal
equally profitable results on q workir
margin OF one half OF one per cent.
"vnfortunstsly. however. the
state laws rotating to trustee In
vsstmsnts vary considerably. These
would need be standsrdiEsd to rive
full SCOPE for national operations.
= A. IN indication OF what the Euro
Y psau mArkst would develop IL
4 might be mentioned that banking