The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-10-12

President Taft Writes a Letter
to the Governors
Recommending Plan for
Cheapening Cost of Living.
HE GOT IT FROM GERMANY
Greater Productivity at Less
Expense on the Farms.
1t Is Based on a Scheme of CO.
Operative Credit.

Beverly. Mass, Oct. 12.-Radical leg
islation in favor of the American farm
er and consumer as a means of solving
the question of the high cost of living
was urged by President Taft today in
a letter to the governors of all the
states.
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 esta blshinS
in the interest of the farmer finan-
cial machine which would give him
access to all the money centers of the
world and afford him credit at great
~ reduced rates and upon more ad-
tageOuS terms than he now re
ceives. The complete development OF
our agricultural resources which this
would make possible. thinks President
Taft, would go a long way toward set
Ting the problem of the high cost OF
living.
What this plan offers writes Presi-
dent Taft lis a means to secure TINS
country greater productivity, at less
cost. from the farms that are now
under cultivation, anu, above all, TO
give us more farms and more farm
ers"
The plan suggested is based upon
the principles of agricultural cooper
alive credit now in use in practically
every country of Europe. Uniform
state legislation. in the opinion oil
President Taft, is essential to the sue
cessful adoption of this plan and he
has invited the governors of all the
states to a conference upon this sub
ject at the time of the annual meet
ing of governors in Washington in
December.
Were not the interval so short.
writes President Taft, my conviction
CT the Importance Of this subject
would impel me to invite you to con-
ference at a still earlier date.
President Taft bases his recommen-
dations on reports submitted by the
American diplomatic officers in Eur
oDe who have. since last March. been
engaged in an investigation OF TINS
question and upon the special report /
of Ambassador Myron T. Herrick, who
has made study for years of the
question of adopting cooperative credit !
in the United States.
"A study of these reports" writes !
President Taft. and of the recon- !
mendations of Ambassador Herrick, /
which am sending You, 'convinces me /
of the adaptability to American con- I
ditiOns of the cooperative credit plan |
as set forth in the orga nization Of the |
RaiffeiSen hanks of Germany. The |
establishment and conduct of such |
banks, however are matters for state |
control I suggest. also, the establish |
nrert of lapd-mortgage banks under |
state charters. and the formation of
cooperative mortgage -b1nd societies |
along the lines of the Landschaften |
societies of Germany. provided that !
uniform state legislation can be Sc
cured to govern their organization and |
operation. As later step, 1 favor the /
enactment of laws by congress permit |
ting the organization of national land /
mortgage banks, to be operated under /
st ant eD11TO. 10
power to guarantee and market the |
guaranteed Gebenture bonds of the |
state land mortgage banks or coopera-
tive societies I recommend for your |
consideration the report and recon- |