The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1912-12-05
Says Farmers Each Year Pay $780,
100000 More Than Necessary
Under New Plan.
MONEY IS NEEDED AT HOME.
Estimate s, o0o,o 900 Should be Elk.
pended at Once in Internal
improvements.
~ United Press.

New York, December 5-The "Ru-
raj Credit Banking SYSTEM, which:
has been investigated recently in
Europe, at the direction of Presi-
dent Taft, by Myron T. Herrick, Uni
ted States Ambassador to France, was
the subject. of an address delivered
here today by Herrick, before the
Sixth Annual Convention of the AS
ISOLATION of Life Insurance Presi-
dents. He spoke in part as follows:
This subject of agricultural cred
its, while of great magnitude, is real
ly after all not intricates The. opera
ton of the Credit Faucier, the Lands
chaften, the Raiffeisen, and hun
dreds of kindred institutions for land
and personal credit, SO eminently sue
cessful and beneficial in their results
in Europe, can be very easily ex-
planned. 1t is simply an application
of the story of the bundle. of sticks
tied together,-singly, easily broken;
together, able to Withstand any pres
sure 81. = - ..-..s,-.=--.s - E
"Villages, municipalities, cities in
America are really a fungus growth
on the country. They are dependent
upon it for life-for existence. -.
"The village, in order to maintain
schools, make streets, build water
works and lighting plants and other
municipal utilities, pledges the uni
ted credit of the municipality, the
the security extending over long
periods. This is done by aid of legis-
lation, which also provided restric-
tions as to the amount of the loan,
etc. In other words, it is financial
'set-up' created by legislative author
ity, and the result is magical in it's
effect. AS soon as this security is
municipality, it becomes cosmopoli-
tan in its nature. Instead of depend
Ing on the home market, it has be-
come current security in any money
centre of the United States at low
rate of interest. Were it not for
this legal authorization of the ar
rangement, it would depend On. the
local market and necessarily little or
no improvements could take place, or
at least it would be slow, cumbersome
and expensive. Inconsistent as it
may seem, the result is that which
is an artificial growth on the country
has a broad and secure market,
while the country-the great country
itself, which produces and is respon-
sible for the existence of the villages
and the municipalities and the cities.
has local and restricted market and
insufficient capital to promote it's le-
Ultimate advancement.
EVERY year the farmers is spend
ing Something like 1000
more for. interest than would be the
case if he were able to enjoy the
~benfits of this system. This sum
which he expends in interest should
be applied to the development of the
country. 1t has been estimated by
good authority that he needs immed-
lately for legitimate development OF
the soil more than 100000.
1.-The whole question which is now
being agitated is the creation of 3
'set-up'-a financial plan adapted
from European systems which vii
finance our land at low rates of in
terest for a long time, and accom-
panying that system whereby thu
personal credit of the farmer, by ar
arrangement similar to the RaiffeiseI
system in Germany, may also bt
modified and put on a sound basis.
at only needs the application of thu
alert minds of the Americans to worl
out and adapt these systems, for tn
psychological moment has arrived
when it is necessary for it to be done
The very fact that your organ
ixation is turning it's attention nov
to the solution of this question:
many others are doing in America
means that we shall be successful il
Its accomplishment. The widespread,
benefit to be derived from this is 81
great that it is almost past compre
hension, and one becomes impatien
CONTINUED on last page).