The Delta independent., 1912-10-18
or cooperative societies. l recommend
for your consideration the report and
recommendations of Ambassador Her

Tor your consideration the report anu
recommendations of Ambassador Her
rick now published by the department
OF state for general distribution. This
report should receive the attention
of everyone Interested in the problem
OF agricultural finance and, indeed. OF
all persons interested in the welfare
OF the American farmer.
The need for the establishment of
an adequate financial system as an aid
TO the farmers of this country is now
quite generally recognized. The gov
ernment initiative, taken by the de-
partment of state under instructions
issued by my direction on March is
last. have been effectively supple
mented by the American Bankers as
congress. and by many other bodies
by whom this question has been agi-
tated. and valuable work has been
done in studying and disseminating
knowledge OF those great instrument
talities which have been created in
foreign lands to extend to their agri
culturists credit facilities equal in
benefits TO those enjoyed by their
Industrial and commercial organiza-
tions. The handicap placed upon the
American farmer through the lack of
such system and the loss sustained
by the whole citizenship of the nation
because of this failure to assist the
farmers to the utmost development
OF our agricultural resources is readi-
ly apparent.
The twelve millions of farmers of
the United States add each year TO
the national wealth sS.400,000. 90
They are doing this on a borrowed
capital of $4,000. .00O. 200. On this sum
they pay annually interest charges of
s510.000.000. Counting commissions
and renewal charges. the interest rate
paid by the farmer of this country is
averaged at SS per cent as compared
TO rate of 4ls to 3is per cent as
paid by the farmers. for instance, of
France and Germany.
Again. the interest rate paid by the
American farmer is considerably high
er than that paid by our Industrial
corporations. railroads or municipali-
ties. Yet. / think. IL will be admitted
that the security offered by the far
mer is quite as sound as that offered
by Industrial corporations. Why, then
will not the investor furnish the far.
mer with money at as advantageous
rates rs he is willing to supply It to
the industrial corporations? Obvious
ly. the advantage enjoyed by the in.
dustrial corporation lies in the finan.
cial machinery at its command. which
permits II to place its offer before the
investor in more attractive and
more readily negotiable form.
The farmer lacks this machinery.
and. lacking it, he suffers unreason-
ably. This condition is not theory.
Through all the changing conditions
OF a century the soundness and prac.
ticability of such financial machinery.
based upon the peculiar credit needs
of the agriculturalist, has been tried
out. and so successful has been its op.
Grafton that in Germany, in times OF
financial stress. money has been taken
out OF the commercial field and placed
In the keeping Of the empires agricul-
tural cooperative banks for safety
The value Of this assistance to the far
mv receives unQuestionable testimoni,
al in the growth OF the system In the
counthies OF Europe. More specifi
cally this advantage may be seen In
the fact that through this machinery
the German farmer has received
money. at times, at rates lower than
those current In commercial loans.