Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-10-13
WOULD REDUCE THE COST no
FARMERS OF PRODUCING
IOODSTuIES.
IS COOPERATIVE CREDIT
l1;uns Ia Enable the Farmer 10 Oh.
tain Money on Much Easier
Terms.

| can farmer ana consumer az means
Of solving the question of the high
cost of living was urged by President
Taft today in letter to the governors
lpf all the States.
President Tart proposes to reduce
tho cost of foodstuffs on the American
dinner table by reducing the cost TO
the farmer of producing his crops
This would be Gone by establishing
| I'm the interest of the farmer a finan-
cial machine which would give him
access to all the money centers of the
world and afford him credit at greatly
reduced rates and upon more advan-
| tagcous terms than he now receives.
Tho complete development of our ag-
! ricultural resources which this would
make possible. thinks President Taft.
would go long way toward settling
| the problem of the high cost of liv-
ing.
What this plan offers" writes
President Taft. " is a means Ia secure
this country greater productivity, at
less cost. from the farms that are now
under cultivation, and, above all, to
give us more farms and more farm
ers."
The plan suggested is based upon
the principles Of agricultural co-opera-
tive credit now in use in practically
every country of Europe. Uniform
State legislation. in the opinion Of
President Taft. is essential to the sue
cessful adoption of this plan and he
has invited the governors of all the
States to a conference upon this sub
ject at the time of the anaual meeting
of governors in Washington in Decem-
| bef.
Were not the interval so short"
writes President Taft, my conviction
of the importance of this subject
would impel me to invite you to con-
| ference at still earlier date"
| President Taft bases his recommen
dations on reports submitted by tho
American diplomatic officers in Europo
who have, since last March. been en-
gagged In an investigation of this ques-
ton and upon the special report Of
Ambassador Myron T. Herrlck, who
has made u study for years of the
question Of adopting cooperative credit
In the United States
"A study of these REPORTS" writes
datlons OF Ambassador Herrick,
which | am sending you, convinces me
of the adaptability to American con-
dtions Of the cooperative credit plan
as set forth in the organization Df Tie
Raiffeisen banks If Germany. The
banks. however. are matt ers for state
control. | suggest, also. the estalilsh-
ment of land-mortgage banks under
state charters. and the fo:mation of
cooperative mortgage bond societies
along the lines of the Landschailtn
societies of Germany, provided that
uniform tSate legislation can be Sc
cured to govern their organization and
operation. AS i lator step, | favor
the enactment of laws by Congress
permitting the Orga lizatio1 nf nation
al land mortgage banks. 10 he operat-
ed under strict Government Ipervis-
ion with the power to guarantee AID
market the guaI lnlecd debenture
bonds of the state llnd-mortgaso
banks or Ooperaii'e societies. !
recommend for your consideration the
report and recommendations Of AM
bassador Herrick, now published by
the Department of State for general
distribution.
The twelve millions OF farmers of
tho United States add each year to the
of s6.aO0. 100000. On this sum they
are doing this on borrowed capital
Of $6,040,000,000. On this sum they
pay annually interest charges OF s5l0.-
100000. Counting commissions and
renewal charges. the interest rate
paid by the farmer of this country Is
averaged at = 12 per cent. as COM
pared to a rate of 4 1-2 to l--2 per
cent paid by the farmer, for instance,
of France or Germany.
Again. the interest rate paid by the
American farmer Is considerably high
er than that paid by our Industrial
corporations, railroads. or municipali-
ties. Yet, l think, It will be admitted
that tho security offered by the far
mer In his farm lands Is quite az
sound as that offered by Industrial
corporations. Why. then, will not the
investor furnish the farmer with
money at a8 advantageous rates as no
is willing to supply 1t 10 the indus
trial corporations? Obviously, the adj
vantage enjoyed by the industrial cor
poration lies In the financial machin-
cry at Its command, which permits IL
to place its offer before the investor
In more attractive and more readily
negotiable form. The farmer lacks
this machinery, and. lacking it, he
suffers unreasonably. This is not
theory.
But the advantage to be gained by
the adoption of this plan go beyond
the direct saving in interest charges
to the farmer The great necessity
which prompted the establishment and
extension of this plan throughout
Europe was that of checking the rapid
ly advancing increases I'm the cost of
foodstuifs. brought about by the ine-
vitahlc increase in consumption and
the failure Of the Ions -urained soil 10
afford corresponding increase In pro-