The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-09-18

up the total wheat crop Of the entira
country
How much heavier this burden "a
than thae which the European farmer
has to carry, Mr.. Yoakum explains by
pointing out that the German farmer
can borrow on mortgage from the
Lanschaften" or "Ritterschaften" az
Sociations Of land credit at an ever
age rate of 4.4O per cent.
Under these systems the farmers.
IN a certain territory, form into co.
operative societies. syndicating their
farm lands under negotiable bonds
winch are offered Jointly as security
for the credit they need. The indivi3-
ual then borrows from this co.oper-
atNe society. 1t is just as though all
the small farms in a Texas coun,v
no one Of which is more than 1eO
acres, were pooled into one great So
ciety which borrowed on a single bond
against all this property, and then
lert to any individual farmers form
ing this pool as they needed money on
mortgage. This system has been IN
general use in Germany for more than
one hundred and forty years and can
not be regarded as an experiment.
The French farmer is equally for
tunate, for the Credit Foncier."
with resources derived from the sale
OF Per cent bonds to the public, has
lent more than two billion dollars at
a rate which is at present 4.30 per
cent entirely on farm lands.
The loans, moreover, are made
from ten to seventy-five years. and
are retired in very small installnents
year by year. If farmer prefers,
however, he may borrow on short time
loans running from one to nine years
without paying off any of the prin-
cipal year by year. If farmer wish
es to build on his land, he can OBJ
tain through the Credit Foncier a
mortgage credit based on the value
OF the land and the building to be put
up. This is temporary accommoda-
ton, and when the building is COM
pleted, its cost can be added 70 tn.
loan."
When it comes to borrowing mon
ey for current needs, the European
farmer again has all the best Of il,
according TO Mr.. Yoakum, through
the system of rural credit banks,
known in Germany as "Raffeisen"
banks. from their originator, and ad-
opted in France, Italy and other coun-
tries.
In the German Empire, in 1909,
under the purely rural system. about
10000 little country banks did a busi-
ness approximately one billion, six
hundred thirty-four million dollars at
an average interest rate Of less than
peI e-.- - very Lang. usit ~ tnis
endinc was doue an current account.
mn"h - =, without any security ex>
yaot .6e promise 20 lay. T.
'I- l1 "o'. than sixty .ears since
this system was founded, and in that
time there has not been a single in
stance of a failure of Raiffeisen
bank. In other words, through all
kinds Of conditions. including one tre-
mendous international war - the
Franco-Prussian war-these little ru-
raj banks have gone on performing
their functions without any such Pc
riod OF catastrophe as is almost in
variably predicted when a new cystem
OF banking is launched"
Nj. Yoakum declares that American
, agriculture cannot reach its highest
development until some new system
or farm finance is adopted This, he
believes. Is sure to come.
The rapidty Of its realization" he
concludes, depends upon the farm.
ers OF the United States. They are the
first to receive the benefits. If they
do not rouse themselves to wipe out
this terrific annual tax upon their in.
dustry no other man can accomplish
the purpose for them. II. on the con-
trary they through their own organ
izations and through their representa-
tives in Congress. demand legislation
to accomplish this purpose. | have no
hesitation in saying that the annual
interest saved in ten years from now
Will be enough 10 pay the ruling rate
at that time on more than four bill
I'm dollars OF additional money-en-
ough TO open and cultivate every
section of the country To it's full ca
pacity.
The great problem for the farmers
In Snffln iS N. hnt l,nr A.. I'm