The Washington herald., 1912-07-28
Commission to Go to Europe and Study
Rural Credit Systems of Al Countries
The Report of Findings Is
to Be Made at Conference
on Subject to Be Held
at Nashville, Tenn,
Next April.

The Southern Commercial Congress has
Initiated q movement TO introduce some
adaptation Of foreign systems OF CO.
operative rural credit into the United
States. To examine into the merits OF
the various rural credit systems en-
ployed, the congress will send a COM
mission to Europe in May. 1913. The
commission viii comprise two delegates
from each State. and will report to
David Lubin, American delegate to the
International Institute Of Agriculture, at
Rome. Italy. The commission viii report
It's findings to the fifth annual conven-
ton of the Southern Commercial Con-
gress, which will be held in Mobile, Ala,
in September, 1913.
Senator Duncan U. Fletcher, president
of the congress. has directed Edwin
Chamberlain. of San Antonio. Tex, and
Clarence Poe. Of Raleigh. N. c., to make
a preliminary investigation into agricul-
tural cooperation in ireland. England.
France, Germany, and Denmark this
summer This committee will report
prior to the departure OF the commission.
One Conference Held.
Through the cooperation Of the State
Department, Mr. Lubin was brought to
the United States to guide conference
on rural credits, held in Nashville, Tenn.
April 1 to g. Twenty-seven States were
represented at the conference, and 1t was
unanimously decided to appoint COM
mission to investigate European systems
of agricultural finance. with the view OF
adapting the system to the needs OF the
United States.
While the Southern Commercial Con-
sress is given credit for the initiative IN
ma king an organized effort for the study
of European rural credits, 1t should oe
understood that throughout the United
States and in many countries OF the
world intense interest is centered on tnis
subject for the solution Of economic PROB
lens for the masses of the people wfo
live in rural communities. The American
Bankers Association has appointed
committee, composed Of ex-Gov. Myron
T. Herrick of Ohio, recently appointed
amba ssador from the United States to
France; B. F. Harris. president of the
Illinois Bankers Association, and Edwin
Chamberlain. of San Antonio. Tex This
committee will also investigate the SUD-
ject.
Secretary Knox. Of the Department of
State, has commissioned five ambessa-
doris in Europe to make a study of and
report to the department on the subject
of agricultural finance. Ambassador Her
rick is the chairman Of this commission
Parties Favor Scheme.
Both the Republican and Democratic
parties have inserted planks pledging the
party to the investigation Of rural cred
its, and recognizing the vital interest Of
the question. The Democratic plank was
prepared by Senator Ducan U. Fletcher,
president of the congress. and c. ].
Owens, its managing director.
There is no more important question
confronting the American people to-day
than that of agricultural credits 1t is
basic, as the solution of the problem
means relief for the American farmer.
Farmers of the United States pay exorbi-
tant interests on their loans, whereas, in
countries where cooperative societies are
organized, money is secured at from 2
to 4 per cent In Germany, in 1903. the
total business done under the Raineisen
system was 81 ,557, $50. In 1910, the total
business done under the Scaultz-Delitzsch
popular banks was s, so, ,G5.
Delegate Submits Report.
At the regular monthly meeting May
II, 1912 of the permanent committee Of
the International Institute of Agriculture.
Of Rome the president addressed the fol-
lowing remarks to the American dele
gate, Mr.. Lubin:
81 think I interpret the wishes OF the
permanent committee, when, in view of
the importance of the subject. 1 request
you to prepare for the use of the insti- |
tute a detailed account Of the work done. |
and the ideas brought forward at the |
Nashville conference on rural co-opera- |
tive credit from which you have just re-
turned" |
Whereupon Mr.. Lubin presented the |
following outline of the main ideas and |
suggestions on the subject Of adapting |
European systems of rural cooperative |
credit to the needs of the American1
farmer. discussed at the conference:
'As Is known, the interest aroused in 1
The United States by the publications OF
the Institute on the rural cooperative |
credit systems in operation in the Euro |
pean countries induced the Southern |
Commercial Congress IA body formed to
promote the economic development of the |
sixteen Southern States of the Union). |
to address the American delegate in /
January last with a request that he |
should attend a conference on this SUBJ |
jest at Nashville, Tenn. The invitation
was accepted.
This conference met to decide whether |
Il would be desirable to appoint a Sc
ect committee from the various States
of the Union to go to Europe and in
these systems in the countries
whore they are in operation. and report
as to the means of adapting them in the
United States to the needs Of American |
agriculture.
The conference convened on April 1.
1t Nashville. G. Grosvenor DAVE, man.
aging director. and Clarence J. Owens,
treasurer of the Southern
Commercial Congress, acting as chair
nan and secretary.
The proceedings were opened by the
reading and consideration Of two docu-
nents on the subject. handed to me by
H Exc. Luigi Luzatti. Of Rome. and
BY Mr.. Louis-Dop, vice president of the
Both Of these documents were
afterward transmitted Geographically,
through Senator Hoke Smith of Georgia,
10 the United States Senate. i
THE labors of the. conference were
greatly facilitated by the Institutes pub
ication, entitled AN Outline of the Eu-
-opean Agricultural Cooperative Credit
Systems" which was distributed among
he delegates.
The Different Systems.
The discussions were divided under
.hree heads:
First The Raiffeisen system.
Second. The Schulze-DelitscA system.
Third The German Landschaften
system.
At the conclusion Of the proceedings
he conference passed a resolution recon-
nending that a committee be selected to
20 to Europe under the management of