Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1912-06-07


due each year, interest plus annuity,
is only 4.4S per cent, and, in this
way, the farmer is able to pay back
the entire loan without great burden.
The French government supervises
the operation of the Credit Foncier,
appointing the governor and two sub
governors. The affairs of the com
pany are run by general assembly,
representing all the stockholders of
the company. This assembly APP
points the council of administration,
which with the three treasurers
general, numbers % members. The
shares of the company are dealt in
on the Paris Bourse and may be pur-
chased by anyone. They are issued
for 500 francs, but now sell for 100
francs, paying per cent dividends.
The capital stock of the company is
200, 100000 francs, or about $40,-
100000.
In Germany practically the same
system prevails in what are known
as Landschaften. These are soci-
cites of farmers with the power to
issue bonds based on mortgages held
by the association. These bonds are
guaranteed by every member of the
society With this guaranty these
bonds find ready sale in any bank in
the empire and are bought by invest
ors of every class.
The hackers of the scheme in
Washington feel confident that
plenty of American money at cheap
rates can be found for investment in
American Farmland mortgages if
this system is introduced here and
the link is provided for the farmer
to get his offer before the general
investor of the country. 1t is in
tended to make the venture, when
adopted here, project primarily for
the benefit of the farmer The pro-
moters of the scheme are not to re-
ceiye any portion of the profits, and
even the earnings of the stockholders
will have to be kept down to very
reasonable rates. Government SUI
pervision may be introduced as in
France, or at least provision would
be made for thorough investigation
of the operations of the company by
the federal and probably also by the
state authorities. 1t is likely that
the cooperation of the state govern
ments will be required in other ways
Discussing the plan today one of
the governm ent officials to whom
has been intrusted the preparatory
work declared that the failure in the
United States to secure cheaper
money for the farmer has been
largely responsible TOR the fact that
the per acre production of many
staple agricultural products in this
country is far behind the European
production. This is true, he said, in
the production of wheat, oats and
potatoes, in all of which products
Europe leads in acreage production.
He pointed out that in Europe when
the governments took up the ques-
ton of teaching the farmer improved
methods of agriculture they had the
foresight to help him secure the
wherewithal to adopt these methods.
Much is being done by both the fed
eral government and the states
through the department of agricul-
ture, the agricultural schools, expert
ment stations, and in other ways to
teach the American farmer better
methods, but nothing has been done,
he pointed out, to help the farmer
secure money with which to adopt
them.
The agricultural-edu work
in Europe was done hand in hand
with the form ers' cooperative move
ment, and the governments aided the
cooperative associations by granting
subventions, lending expert advice,
and in other ways, so that the farmer
whenever he was taught a new
method or shown the value Of intro
ducing improved machinery, was
given a way to secure the necessary
machinery or adopt the new plan.
AS an instance of the benefits ex-
tended to the farmer it is pointed out
that in France these cooperative So
cieties which have been developed
with goVrnment aid spend a part of
their surplus funds in the purchase
of high-grade agricultural machin-
cry This machinery can be obtained
by the farmer upon the payment of
practically nominal fee and is
sometimes loaned gratuitously.
Though such plan is not a part
of the present attempt, the reduction
OF rates of interest on money and
the improved terms which it is ex-