Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1912-10-12
Conference Called to Consider Uni
form Laws by States,
FINANCIAL MACHINE IS NEEDED
Tiller of Soil Now Pays Higher In
terest Than Manufacturer,
EUROPEAN CREDIT PLAN MODEL
President Bases Recommend dations
on Reports Submitted by Amer
lean Diplomatic Officers who
Make investigation.

BEVERLY, Mass, Oct. u.--Radical leg.
islation in favor of the American farmer
and consumer as means Of solving the
question of the high cost Of living was
urged by President Taft today in a letter
to the governors of all the states.
President Taft prposes to reduce the
cost of foodstuffs on the American din.
ner table by reducing the cost to the
farmer Of producing his crops. This
would be done by establishing In the in
terest of the farmer financial machine
which would give him access to all the
money eenters of the world. and afford
him credit at greatly reduced rates and
upon more advantageous terms than he
now receives. The complete development
Of our agricultural resources, which this
would make possible, thinks President
Taft, would 60 a long way toward set
ting the problem of the high cost of
living.
What this plan offers" wrotes Presi-
country greater productivity, at less
cost, from the farms that are now under
cultivation, and, above all, to give us
more farms and more farmers.
The plan suggested is based upon the
principles of agricultural cooperative
credit now in use in practically every
country of Europe, Uniform state legis-
lation, in the opinion of President Taft,
is essential to the successful adoption Of
this plan and he has invited the gov
ernors of all the states to conference
upon this subject at the time of the an
nual meeting of governors in Washington
in December.
Were not the interval so short" writes
President Taft, my conviction Of the
Importance of this subject would impel
me to invite you to conference at a
still earlier date"
Diplomats Investigate Systems.
President Taft bases his recommended
tions on reports submitted by the Amer
lean diplomatic officers in Europe who
have, since last March, been engaged In
an Investigation of this question and upon
the special report OF Ambassador Myron
T. Herrick, who has made a study for
years Of the question Of adopting CO.
operative credit in the United States.
"A study o fthese reports" writes Pres
ident Taft, "and of the recommendations
of Ambassador Herrick, which / am
sending you, eonvinces me of the adapt
ability to American conditions of the CO.
operative credit plan as set forth in the
organization Of the Raiffeisen banks Of
Germany. The establishment and conduct
of such banks, however, are matters for
state control. l suggest, also, the estab-
lishment of land mortgage banks under
state charters, and the formation of CO.
operative mortgage bond societies along
the lines of the Landschaften societies of
Germany. provided that uniform state
legislation can be secured to govern their
organization and operation. AS a later
STEP / favor the enactment of laws by
national land mortgage banks, to be
operated under strict government super
vision with the power to guarantee and
market the guaranteed debenture bonds
Of the state land mortgage banks or CO.
operative societies. l recommend for
your consideration the report and recon-
mendations of Ambassador Herick, now
published by the Department of State for
general distribution.
''The 100000 Of farmers of the United
States add each year to the national
wealth, $S,4Oo.OOO.OO0. They are doing this
on borrowed capital Of 5000, ,0O0, 900.
On this sum they pay annually interest
charges Of s51O,o00.oOO. Counting COM
missions and renewal charges. the in
terest rate paid by the farmer of this
country is averaged at Sh per cent, as
compared to rate of 41z to 31a per
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