Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1912-06-15
INVESTIGATING THE SUBJECT OF
CHEAPER MONEY FOR OUR FARMERS
Would Provide Essential Link
Between Farmer and
Investor.

of the company is 200,ooo,ooo francs.
or about $40000,000.
In Germany practically the same
system prevails In what are known
as 'Landschaften." These are socie-
ties Of farmers with the power TO is
sue bonds based on mortgages held by
the association. These bonds are guar
anteed by every member of the soci-
ETY.. With this guaranty these bonds
find ready sale in any bank in the EN-
pire and are bought by investors of
every class.
The hackers of the scheme In Wash
ington feel confident that plenty of
American money at cheap rates can be
found for investment in American
farm land mortgages if this system is
introduced here and the link Is pro-
vided for the farmer TO get his offer
before the general investors of the
country. 1t is intended to make the
venture, when adopted here, a project
primarily for the benefit of the farmer.
The promoters of the scheme are not
and even the earnings of the stock
holders will have to be kept down to
very reasonable rates. Government
supervision may be introduced as in
France, or at least provision would be
made for thorough investigation of the
operations of the company by the fed
eral and probably also by the state au-
thorities. 1t is likely that the cooper
alton of the state governments viii be
required in other ways.
An officials View.
Discussing the plan one of the gov.
eminent officials to whom has been in
trusted the preparatory work declared
that the failure in the United States
to secure cheaper money for the farm
er has been largely responsible for the
fact that the per acre production of
many staple agricultural products in
this country is far behind the Euro
pean production. This is true, he said,
in the production of wheat, oats and
potatoes, in all of which products Eu-
rope leads In acreage production. He
pointed out that In Europe when the
governments took up the question of
teaching the farmer improved meth
DDS of agriculture they had the fore
sight to help him secure the where
withal to adopt these methods. Much
is being done by both the federal gov
eminent and the states through the de
partment of agriculture, the agricul.
tural schools. experimental stations and
in other ways to teach the American
farmer better methods, but nothing
has been done, he pointed out, to help
the farmer secure money with which
to adopt them.
The agricultural educational work In
Europe was done hand in hand with
the farmers cooperative movement,
and the governments aided the coop
erative associations by granting sub
ventions, lending expert advice and in
other ways. so that the farmer when
ever he was taught a new method or
shown the value of introducing i'm
to secure the necessary machinery or
ADOPT the new plan.
An Instance of the Benefits.
AS an instance of the benefits er-
tended to the farmer it Is pointed out
that in France these cooperative So
cieties, which have been developed
with government aid. spend a part Of
their surplus funds in the purchase of
hlgh grade agricultural nacnIiivry.
This machinery can be obtained By
the farmer upon the payment of a
practically nominal fee and is some
times loaned gratuitously. Though
such a plan is not part Of the pres
ent attempt, the reduction of rates of
interest on money and the improved
terms which it is expected will be OBJ
tanned for the farmer will make it a
much easier thing for him to purchase
improved machinery and better his
methods of cultivation.
The American organization would
probably act in far more restricted
field than most of the European com
panies, which have many other func-
tons than the sole one of floating
bonds ON farm mortgages. However.
1t would provide the essential link be-
tween the farmer and the general in
weston. President Taft is optimistic
that In this plan he can give the In
weston a safe place for his money and
at the same time apply that money in
the development of what he considers
one of the most important industries
to which the United States owes pro-
lection today.