Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-10-12
TO FINANCE FARMER PLEASED WITH TRIP
Taft Calls State Governors for Wilson Graed at His Recep
Discussion. ton in Tour Just Ending.
WOULD USE GERMAN IDEA HE is NOT FOR FREE TRADE
Cooperative Credit Plan Foreign Addresses Thong Filling Central
Banks Adaptable Here. Armory n Cleveland.
EXPECTED COST EULOGIZES HIS PARTYS
Banks and Behind Third Term
ederalC Control in
Taft Calls State Governors for
Discussion.
WOULD USE GERMAN IDEA
Cooperative Credit Plan of Foreign
Banks Adaptable Here.
EXPECTED TO CUT LIVING COST
Favors Organization of Land Mort
gage Banks Under State and
Federal Control.

Federal Control.
BEVERLY, Mass. October Fin a
letter to the governors of all the states,
President Taft proposes radical lesisla-
ton. which he desires be made so far
as possible. uniform throughout the
states. in favor of the American farmer,
by obtaining for the agricultural inter-
ests system of cooperative credits SIM
liar to that practiced by the banks of
Germany.
Would Lower Living Cost.
President Taft has asked the "house of
governors" to meet with him at the
White House. when they gather in Wash
ington in December for their annual
meeting. to discuss this new financial
plan. and. he believes, if it is put into
practice it will have a material effect in
lowering the cost of living by lowering
the cost to the farmer of production The
proposed plan would give the farmer a
financial machine which would gain him
access to all the money centers of the
world and afford him greatly reduced
rates of credit
More Farms and Farmers.
What this plan OFFERS writes Presi-
dent Taft to the governors, lis a means
to secure this country greater produc-
tivity at less cost from the farms that
are now under cultivation. and. above
all, to give us more farms and farmers. -
In asking the governors to take the
subject up with him at the White House
in December. President Taft SAYS: "My
conviction of the Importance of this SUBJ
1ect would compel me to invite you to a
conference at still earlier date, were
not the interval so short
On Reports of Diplomats.
President Taft bases his recommends.
tons on reports submitted by the Ameri-
can 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 T. Herrick. who has made a study
for years of the question of adopting
cooperative credit in the United States.
"A study of these reports writes
President Taft. land 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 Raiffeisen
banks Of Germany. The establishment
and conduct of such banks, however.
are matters for state control 1 suggest,
also, the establishment of land-mortgage
banks under state charters, and the for
nation Of cooperative mortgage-bond So
cieties along the lines of the landschaf-
ten societies of Germany, provided that
to govern their organization and opera
ton.
To Operate. Under Government.
LAS a later step, l favor the enact
ment of laws by Congress permitting the
organization of national land-mortgage
banks, to be operated under strict gov
eminent supervision with the power to
guarantee and market the guaranteed
debenture bonds of the state land-mort-
gage banks or cooperative societies.
recommend for your consideration the
report and recommendations of Ambas-
sadOr Herrick. now published by the De-
partment of State for general distribu-
ton.
THE twelve millions of farmers of the
United States add each year to the ma
tiOnal wealth SS,4O1WO.00O They are
doing this on borrowed capital of
5000, 100000. On this sum they pay an
nually interest charges of $4,000. TAO.
Counting commissions and renewal
charges. the interest rate paid by the
farmer of this country Is averaged at S12
per cent, as compared to rate of ~. to
~. per cent paid by the farmer for in
stance, of France or Germany.
Farmer Pays Higher Interest.
Again, the interest rate paid by the
American farmer is considerably higher
than that paid by our Industrial corpora
tions. railroads or municipalities Yet,
think, it will be admitted that the Sc
curity offered by the farmer in his farm
lands is quite as sound as that offered
by industrial corporations. Why. then.
will not the investor furnish the farmer
with money at as advantageous rates as
he is willing to supply it to the indus
trial corporationso Obviously. the adj
vantage enjoyed by the industrial cor
poration lies i'm the financial machinery
at it's command. which permits it TO
place it's offer before the investor in Il
table form. The farmer lacks this ma
chinery, and. lacking it, he suffers un-
reasonably. This is not theory
Check Higher Cost.
But the advantages to be gained by
the adoption of this plan go beyond the
direct saving in interest charges to the
farmer. The great necessity which
prompted the establishment and extern
sion Of this plan throughout Europe was
that of checking the rapidly advancing
increases in the cost of foodstuffs.
brought about by the inevitable increase
in consumption and the failure of the
long Grained soil to afford correspond
ing increase in production. That prob
lem faces the people Of this country to-
day-not in so severe form it threat
enei the older ountries Of Europe. but,
still, as a great and pressing economic.
problem.
Problem Met in Europe.
In Europe this problem has been sue
cessfully met. first. by reducing the cost
to the farmer of producing his crops and,
secondly. by increasing his production
through the adoption of improved. meth
DDS of cultivation. Both the federal and
state governments in this country have
done much to afford the farmers instruc-
ton in improved agricultural methods.
But it still remains for us to reduce the
cost of the farmers production by afford
ing him the necessary capital for the eX-
hi roll Il