The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1912-10-08
WARNING
Sounded 10 america By
Ambassador nerrlCk
National Calamity Il specuIa.
tIon Not Guarded Against

Washington, Oct. "A warning to
the American people that the great
benefits of cooperative credit may Be
turned into a national calamity II
speculation is not guarded against by
wisely considered legislation and
strict government supervision has
been sent by Ambassador Myron T.
Herrick to the State Department, in
connection with the report which he
Is making as basis for President
Taft's effort to establish cooperative
credit in the United States for the
benefit of the American farmer.
Il realize writes Ambassador Her.
rick, that the agitation Of the finan-
cial phase of the agricultural question
has undoubtedly brought many people
into the field who only see here an op.
portunity for creating security which
will have wide market. OF course
we can not prohibit them from enter
ing this field and organizing under
present laws, but I would urge that a
timely reminder be given to the peo-
pie, recalling the infinite harm that
came to our country from the exploita-
ton of Europe in our early days of rail-
road building, with railway securi-
ties of unlimited issue. unchecked by
any State restrictions.
There WAS also the land mortgage
craze of some Is or 80 years ago, con-
Quoted with unbridled license. There
were, indeed, in that movement Ger.
tain companies, honest and well mean
ing but lacking in judgment. Others,
however, counted upon the cupidity of
the public and victimized the investor
to such an extent that land mortgages
have been a stencil in the nostrils Of
the investor ever since.
"The plan which am now at work
upon by direction>of President Taft
is of the greatest magnitude. 1t affects
every individual in the United States.
1t is essential that the government,
both Federal and State, assume due
responsibility and thus prevent re-
currence of these errors of the past.
This field must not be permitted to
be overrun by irresponsible people
without check. Of legislation.
"The study which we have made Of
the cooperative and mortgage systems
of Europe has demonstrated beyond
question that these organisations, with
or without state aid, but all inspected
and carefully guarded by the state,
have resulted In financing. Mn the most
satisfactory way, the agricultural in
terests OF all Europe. 1t has demon.
strated as well that these systems may
be adopted in the United States and
that we may even. with the expert.
Lewiston, Idaho, Oct. 4-Delegates
from five States are attending the
second annual convention of the Col
umbia and Snake River Waterways
Association, which met here today
for two days session. The assOcia-
tion is working for congressional
appropriation for the completion Of
the Cello canal and the opening of
Columbia and Snake rivers to all nav
igation.
ments Of Europe to guide us. vastly
improve upon the European systems
and do for the American farmer what
has been done for the European farm
er--create ready market for agricul-
tural securities at low rates of inter-
est and with unburdensome amortiza-
tion and thus afford natural increase
and. in some cases. double the produc-
tion of his SOIL"