Morris tribune., 1912-11-15
LAND CREDIT SYSTEM.
Ambassador Herrick on Its
Adoption in America.

PoPC4 correspondence SuDAu1LCcu CCA IdAu
press comments on his recent report
on the land credit system in Europe,
notably clipping telling of Presi-
dent Taft's invitation to the govern
ors of the various states to meet him
at the White House next December
for discussion of the proposed uni
form legislation looking to the estab-
lishment of an agricultural credit sy-
stem for farmers, made the following
statement:
''The question of land credit sy-
stem in America is a vital one.
This is proved by the intense interest
aroused throughout the whole coun-
try. 1t may be said that the psyche
logical moment has arrived.
"American agriculture offers as
good guarantees for financial aid as
do American industry and commerce.
1t resembles a well-equipped train
placed on a well-laid track and ready
to proceed but lacking the means of
getting up steam.
"The aim of the present proposal
for land credit system is to open
the money market to the farmer on
an equal footing with the business
man or the manufacturer.
"What are the farmers needs for
the development of agriculture?
asked the correspondent.
"The ability to borrow adequate
capital at moderate interest for a
long term of years with an amortiza-
Uion scheme automatically extinguish-
ing the loan when the time has ex-
pired. replied the ambassador. 'The
American farmer of the future,' con-
tinued Mr. Herrick. twill be a busi-
ness man, running his farm on busi
ness lines. He has the same claim
to credit as railroads or steamships.
His realization of this is significant
and characteristic feature of the pre-
sent irresistible movement in. favor
of land CT edit reform which President
Taft's action has evoked.
Public attention in America, !"
; went on Mr.. Herrick, sshas been too
! exclusively devoted to fostering in
fant industries. The result has been
that while. owing to the growth of
population, the demand for agricul-
tural products is increasing go per
cent, the supply is only increasing 36
per cent If this state of affairs con-
tinues America in a decade will be-
come food purchasing nation. This
ought not to arise.
"Japan illustl ates the possibilities
tof agriculture, said Mr.. Herrick.
Its area is smaller than that of
California. and only one-sixth of it is
capable of agricultural cultivation
owing to it's volcanic nature. yet
Japan supports 100000 people.
3 The possibilities of the Americans are
Y practically unlimited. Their immense
natural resources could supply the
S whole world with foodstuffs- The
r gradual realization of this truth,
] which has produced the present move
= ment for reform in the problem of
agricultural credit is not being studied
for the first time in america. The
b solution of the problem. however, re.
n ceived setback thirty years age
(, when an effort was made to finance
the farmer by bonds guaranteed by
s mortgages on agricultural property.
e But no safeguards were adopted. nc
e government supervision was exacted,
S reckless speculation resulted, immense
losses were incdrreJ and the inevitable
reaction set in.
The delay, however," the ambas.
sador pointed out. "gives the Ameri
cans the advantage of being able tt
Il profit by the experience of othel
: nations. The creation of the German
mortgage bank system dates only
from 1899. The investigation o.
. that system, on which my report Il
{ President Taft was based, has there
: fore produced new and valuabl,
material.
= Agricultural credit is the problem
Of the hour. Great Britain, by pass
ing the Irish land purchase act, tool
the first step towards its solution
l. and in Great Britain a royal commits
. sion has been collecting further dat,
for the last eighteen months -
g In reply to question as to VIII,
the national banks in America do no
undertake the work of credit sy
stem, as suggested in letter 0
Elmer E. Adams, president of tn
'e First National Bank of Fergus Falls
1t Minn., the ambassador said that h
IT considered the national banks insult
able for this work as their operation
ID are entirely different to hsndlin
liquid commercial paper. Separat
institutions arc uocnccorxy ha Iac1a~n