The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-08-27

tive system of rural credits akin to
systems employed in Europe. Sena-
tor Fletcher was chairman of the
American commission on agriculture
cooperation which returned to the
United States, July %, after three
mouths study of European systems OF
rural credit.
He pointed out as the greatest
weakness Of the banking system of the
United States, so far as it affects
farmers, the immobility of farm cred
its and the lack of cooperation among
farmers
Farmers Must Organize.
ut seems quite we'll established
that economic evolution has made or
ganzation a necessity to farmers. Co
operation is suggested as a form of or
ganzation which would secure for
them at once the highest business
efficiency and the greatest social
strength" said Senator Fletcher
"CO-operative organizations should
be formed with a view, first, to i'm
proving their credit facilities; second
~, to increasing their control over
the marketing of crops and to
strengthening their position as buyers
and sellers, and thirdly, to establish
ing a channel whereby educational
propaganda and work for the improve
ment of country life conditions may
be effectively brought to the individ-
ual and his cooperation and partici-
patton in that work secured.
Credit is the keystone of the or
ganization proposed. American farm
ers possess pottention credit of vast
amount The task is to discover a
plan whereby that credit may be made
cneaply and easily available.
System Germany Uses.
The most highly developed systems
of short time agricultural credit insti-
tutions are found in Germany. They
are in the form of a pyramid com
posed of local cooperative credit so
cieties, central societies operating gen
orally over a province or administra-
tive district and main central So
ciety, as the apex, at Berlin.
Every farmer joining a local so
ciety assumes liability for its debts
In other words, he signs over his
credit to the society and with this
collective liability or credit as secur
| ity the society contracts loans and so
licits saving deposits. The officers OF
the society are so chosen that one set
or board keeps check on the other
/ The general management of the af
fairs of the society are left in the
hands of the general assembly of all
members.
No matter what stock membership
a member may have he is entitled tc
only one vote. His stock ownership
is generally limited to a small amount
The worst feature of the farm
mortgage in this country is in its indi
vidual character Life insurance com
panies control practically the only
! source of money to which the farmer
may turn in disposing Of his mortgage
besides the individual lender or his di
rect agent. The individual lender con
trolls the market Therefore Ameri
can farmers today are paying one rate
of interest in one state and another
elsewhere.
Breaks All Connection.
"Ine 6EtCL OF the European system
lis 70 break all connection between the
mortgagor and the mortgage. An in
/ stitution is established which ap
praises the land OF farmers desiring
mortgage loans The loans are grant
ed by such institution which retains
the mort gage Then mortgage bond:
secured by the mortgages. but as the
direct obligation OF the institutions
are issued. No one bond is secured by
one mortgage. but each bond is a lieI
against all of the mortgages.
Such a system reduces interes
rates. makes the demands upon the
farmer consistent with his income
eliminates commissions. protects hin