The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-10-21
AGRICULTURAL CREDITS.

President Taft has interested him.
! self very much in the matter OF estao-
fishing a foundation for agricultural
credits in this country, similar to those
which have had such extensive develop
ment in Germany. IN Scotland, aud
! more recently in France. la Germany.
where the idea has been worked out 10
/ its greatest perfection, the agricul-
tural communities form credit associa-
tious. ANY member of any OF these
associations desiring 10 borrow money,
| borrows on the credit of the whole rs.
sociation, making the loan sure; and
the borrowing is at low rates of inter.
est and for long periods OF time. The
debt is made absolutely secure by the
pledging Of the credit Of the whole as
socistiou, the idea being substantially
the same as that which allows Of the
formstion here Of drainage districts,
with the issue OF stock; save only
that in Germany the association is only
for credit purposes and no stock Is Is
sued. But banks or loan interpretations
lend 10 the individua; farmer on the
credit of the association, hciug sbso.
lutcly sure and safe in the investment.
This is the general idea Of the. plan
Of agricultural credit associations. The
credit OF all is pledged 10 and for
all and il is only necessary to get the
association well established and then
the extension of credit TO the farmer
is Just as easy, just rs sure. and Just
as ready as a like extension of credit
is TO the business man in a city. The
advantage of il is that it gives the
farmer business and credit stand
ing equal 70 that Of the business man
or the business association of any
kind
The Endorsement Of the general
proposition by President Taft. however,
is in tho line of having the States pro.
vide for the formation of these fasso.
Citations under State laws But. this.
while undoubtedly more in accord with
precedents in this country and with
the State unit. idea. would perhaps shut
out tho National banks from participa.
tion IN this form of extension of agri
cultural credits. 1t may be true that
II the movement were made National
the farmers in the Eastern aud Mid.
die states might receive prior attcn.
tion In their associations TO those in
the remotcr parts of the republic. and
the state unit would therefore be
preferable on that view of il. But it
Is clearly desirable 70 have The Ma
tioual banks participate in this propo.
sition TO extend agricultural credits
for II they arc shut out, very large
proportion of the flexible money of
the country would be dcbarred from
any participation in this movement.
But if the movement is TO be set on
foot at all. it should be so planned as
20 allow all of the available money of
the country to take part in it, with due
care and surrounded by proper safe
guards,
There is no doubt, however. but
that our financial system Iags behind
the systems of other countries in this
RESPECT; for farming in America is
certainly on as solid basis as il is
al polI Dl IDC "OIlu. ana fnPTf
ought not TO be any reason why farm.
ing community should not band itself
together for the establishment Of
credit resources and have the transac.
tiou more profitable TO all concerned
than such transactions are in Germany,
Scotland, OF France For America is
the rich country Of the world. aud il
ought TO put itself in a condition such.
rs when any community wishes TO
establish credit basis for itself and
It's membership. there would be law
aud facility for 30 doing. The lack
that we have shown heretofore in this
ought 10 be supplied. aud President
Taft does his countrymeu valuable
service in lending his suppor; to the
plan for the establishment of agricu.
tural credits