The Detroit times., 1912-09-12
LAND BANKS OF EUROPE
HAVE SOLVED PROBLEM
OF FINANCING THE FARM
Coz Operative Institutions De-
scribed by Edwin Chamber
lain, Before Convention
LOAN CASH AT LOW RATES
Have Other Features Aiding in
Development of Agriculture
Sections Meet

the second session of the sections OF
the American Bankers association
and the most important papers OF the
day were read before the savings
bank section.
v. A. Lersner. assistant cashier OF
tho Williamsburgh Savings bank. OF
Brooklyn, N. Y. read the report OF the
committee on methods and systems
before the savings bank section, TAX
ing up the methods pursued I'm hand
ling deposits and Withdrawals In q
number OF typical institutions. The
paper was followed by short discus
sion.
Edwin Chamberlain, vice-president
of the San Antonio Land q Trust Co.,
San Antonio, Tex, followed with a
paper on European land and rural
credit facilities" Mr.. Chamberlain
said, In part:
The movement to finance the farm
and improve the rural credit system
OF the United States. has spread over
the country, and capable and enthusi-
astic advocates In almost every state
are devising ways and means to sup
ply the American farmer with money
on easy terms of repayment, equitable
interest, and give mobileness and
fiuidity to real estate mortgages. No
financial question OF recent time In
volving the common welfare has or
sudden enlisted such strong and
disinterested support as that which Is
now backing this movement.
Although the movement Is now
advancing by leaps and bounds IL can
not reach its consummation any too
soon. The United States with all It's
natural resources and the superior
intelligence OF its people is backward
and retrogressiye In agricultural af-
fairs. Farms by the thousands have
been abandoned in the older states.
Vast areas of arabic lands lie un-
touched by the plow In the south and
lsmest. Irrigation, DRAINAGE and re.
tciamatfon projects that could supply
sustenance to millions are undevel-
oped. Reckless methods Of cultiva-
tion have robbed the soil OF Its crea-
tive values. The price OF food stuffs
has been so enhanced that complaints
are heard on all sides OF the unbear-
able cost OF living.
'In the United States there Is no
company, national In Its scope, that
makes speciality OF farm mortgages;
nor is there any credit arrangement
especially adapted and devoted 10 the
American farmer. The landowner or
the farmer, II he wishes to borrow, Is
confined to the restricted money mar
ket of his immediate vicinity. This
works we'll enough In some of the
older sections OF the country, but In
the great producing areas OF the south
and west there is scarcity OF money,
that Is seriously felt.
Land Bank Systems.
I'm Europe, particularly In those
countries which are most prosperous
from the agricultural point of view,
land bank systems have existed for a
long time, while securities, based on
real estate, have been made as liquid
and convertible as municipal bonds.
THE first agricultural mutual cred
Il society was started in 1S49 in Ger
many by Herr Frederick William
Faiffeisen.
The pure. so-called 'Raiffeisen
bank is simply a cooperative asso-
citation in which all members blnu
themselves to be jointly and sever
ally liable without limit forJall the
debts II contracts. The chief fea-
lures are that the association is abb
solutely local-its membership ana
business being confined to restrict
ed neighborhood. The value OF the
capital shares is nominal; only small
dividends are paid. Most all the
profits are put In the reserve. The
societies accept deposits from mem
bcrs and outsiders and have savings
tContinued ON rage EighD