Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-10-31

'~N~ 80 ~ UWN
The people of Vermont have been hearing much during the
past few months about better conditions for our farmers and
more favorable legislation for the promotion OF the develop
ment of our gricutural resources, particularly regarding rates
of interest and taxation of loans.
Conversation with different members of the Legislature has
disclosed a vigorous determination to do something in the direc-
ton indicated, even though there may be differences OF opin-
ion as to exactly what remedial measures should be adopted.
In the meantime while the Vermont Legislature is consider.
ing ways and means of securing more favorable rates of interest
and taxation on money loaned on real estate, President Taft is
directing attention to the people to some of the systems adopted
abroad for accomplishing these ends, especially rural credit
methods and judging from all accounts much is to be expected
from measures of this kind.
Governor Fletcher in common with the executives of other
States has been invited by President Taft to attend a confer
involving the farmers of the United States as a whole as well
as the consumers of this country.
It is no secret that President Taft has a definite plan of
federal procedure which will also help to reduce the rate of in
terest at which the farmers of the United States can borrow
money. He holds that cheaper credit would enable the farmer
to produce at smaller expense and thus aid in bringing about
the reduction in the cost of living for which all classes of peo-
President Taft not only believes that federal legislation can
provide a system which will enable our farming population to
obtain access to all the money centers of the world and secure
credit at reluced rates, but he also holds that the complete de-
velopment of a system of this kind would mean greater pro
ductivity of the soil cultivated and more farmers as well as
more farms.
While the plan suggested is based upon the principles of
tries of Europe, the President believes uniform State legisla-
ton is essential to the highest success of the proposition and
that is one of the reasons why he has invited the executives
of the different States to a conference on this and other I'M
portant subjects.
President Taft bases his recommendations on reports sub
mittei by the American diplomatic officers in Europe who have,
since last March been engaged in an Investigation of this 4ues-
ton and upon the special report of Ambassador Myron H. her
ing cooperative credit in the United States. "A study OF these
reports writes President Taft, "and of the recommendatlons
American conditions of the cooperative credit plan as set forth
in the organization of the Raifeisen banks Of Germany. J.,
''The twelve millions of farmers of the United states aod
each year to the national wealth $S.4Oo.0oo0o0. They are doing
this on a borrowed capital of $6O4ooooooo: On ths sur 1ne!
pay annually interest charges of $5l0OooOoo. Counting com
missions and renewal charges, the interest rate Pa'o u. .ns
farmer of this country is averaged at s6a per cent, a compared
of France or Germany. Again, the interest rate paid by the
American farmer is considerably higher than that PAID by our
industrial corporations, railroads. or municipalities, aet, l
think, it will be admitted that the security offered by the farmer
in his farm lands is quite as sound as that oifereo D! "'"S''" "
corporations. .;o g +h;s
plan 90 beyond the direct saving in interest charges to the
farmer. The great necessity which prompted the estaonshmens
and extension of this plan throughout Europe was una. o.
checking the rapidly advancing increases IN the cost OIL loou,
stuffs, brought about by the inevitable increase IN consumpuon
and the failure of the long-drained soil to afford a correspond
ing increase in production:
President Taft strongly deprecates any idea of establishing
cooperative credit in the United States through the support
of government subsidies. eve must establish a credit system
of. for. and by the farmers of the United States he writes
''The country enjoys to-day great prosperity, the factories are
busy, the workingmcn are employed. and everywhere the wheels
of industry hum. The farmer shares in this general prosperity.
The proposal which make is not to subsdize the American
farmer. Fortunately for the country he does not need It, nor
would he accept it,"
President Taft warns the governors that in this plan, as
in all financial schemes. there is room for harmful exploitation
for personal gain. 1.-The most essential point to bear in mind
is the need for the assumption by the federal and State govern
ments of the responsibility for economically and honestly con-
Quoted institutions. Such assumption is the essentia! precedent
for obtaining the confidence of the American as we'll as OF the
European investing public.
If this safeguard is given the farm and banks President
Taft is convinced that he can secure the farmers a market for
their mortgage loans and thus afford the American farmer the
capital necessary for the full exploitation OF the entire agricul
tural resources of this country.
1t is realized more and more that the increased productivity
of the soil is one of the chief hopes of the nation as regards rea
sonable cost of living inasmuch as our population is increasing
much faster than our production of food and other necessaries
of life.
n is reassuring to note the attention which these various
problems are receiving at the hands of both State and federal
authorities. and the result must meal largely increased pros
perity for our farmers as well as benefits for our entire popula
ton.