The Caucasian. (Clinton, N.C.) 188?-1913, 1912-09-26

farmers. II seis-Aef~~se 40 20 so.-
rect the sa5us+tcr ot rr~sx1s co1zs
tons ] quote as fellows
Out Of The famine an1 ukse~y
cane o~w order O. tAEnEw - Ger
1aay. ard ADDED n III The mwrt~zt-
tnFal regions o. Europe N whaeh
small farmers bold their aelaa "a Sab
jugation- Here waa founded - In
sslsatlou that Ia The ena hruaEht
hack 20 the peasant farmers 81 "a
rope their old independence AID
drove the collectors Of usary forever
out % the fields OF The German tarrn-
eT- u Is upoa this same character
of institution. or upou another based
upon it, broad principles. that ne
must call before w~ can solve the
unrest Of the nation.
Let Us turn back now. aud con-
plete the summary xtih which sc
started out We hnd the American
farmer borrowing SIX billion dollars
at an average rate OF st4 per cent
and paying an interest bill every year
of five hundred and ten million dol
lars We find the farmers of other
lands where agricultural credit IL or
gained pledging the same sort OF as
sets under similar loans and paving
an average Of less than per cent.
For the sake OF rounding out the ar
gument on a conservative basis. lie.
us take 5 per cent as the basis. The
difference between per cent and = Il
per cent on six billion dollars is two
hundred and ten million dollars A
year. This is the undue interest tax
paid every year by the American far
mer because he has no organized ma
chinery 10 supply him with the capt.
tai he needs and no announcement
from the Government at Washington.
d. c." Nor, l would add. at Raj
eigh. \. c.
Seeking to Render Service TO the
People.
It is in the light Of these actual
conditions, the significance of these
facts, that the Progressive party in
its platform, breaking away from
discussions Of antiquated issues and
seeking to render substantial service
TO the people, has declared for the es-
tablishment by this State of State
loan and farm banks from which the
farmer can obtain financial assist
ance at reasonable rates of interest
upon which he may be able 10 DC
business more successfully. The dec
laration contains no detailed scheme
| do not doubt that a commission Of
several men in sympathy with the
idea could devise a system to accom-
plish the desired purpose. | believe
that a very simple plan would be Il
have the State to create such a banl
and put behind it the credit of tn,
State. How? There could be select
ed twenty-one trustees composed o
bankers, business men, and farmers
with the sole duty of selecting
board of central director. The banl
could issue debenture certificates a
4 per cent interest, payable at vari
. Gus periods from one to twenty year
or more, payment of which debentur
certificates and the interest thereon
should be guaranteed by the State
The guarantee by the State woul
make them a safe investment, ne
gotiable, and they could be sold no
. only to our own people, but through
! out the money market of the country
? These certificates should be free from
, taxation, State, municipal, or county
J, The State could lose nothing.
would be secured by loans on rea
estate. 1t would involve no add
tional tax. The bank would pay In
, terest and principal. The none
} raised On these certificates could b
!, loaned to farmers both on long pei
manent loans, or as an advance t
plant their crops, at per cent inter
est. The difference between four an
six per cent would pay the expense G
the conduct Of such a banking sys
tenn. You need not call it a bank
ing system; it could be called loa
: association. Now, in making thes
s loans proper regard could be had I
r the security and responsibility Of tn
e. borrower, but at all times having