Deming graphic. (Deming, N.M.) 1903-1948, 1913-05-27
Recently they made a public offering
of loan of $1OO,0OO,0OO, which was
many times over subscribed.

the Landschaften-which loans
the farmers Of Germany on favora-
BILE terms, and which has been very
successful in aiding the farming in
dustry of that nation.
In my study of this and kindred
questions in connection with agricul-
tural development, ! have talked with
many people in the West and in the
East, and there is general consen-
sus Of opinion that the formation of
a company to operate under Fed
eral Government charter authorized
to engage in agricultural development
would be move in the right direc-
ton and would form the basis for
building up an institution which
would be vastly beneficial in aiding
the farmers in getting their money
at better rates of interest and for
long periods The farmers difficulty
is not altogether in the fact that he
must pay from 8 to 10 per cent for
his money, but also that he must re-
new his loans every six to twelve
months, burdening him with an addi-
tional expense through lawyers fees
for examination of titles, discounts,
etc, all of which, however, he can
usually meet except when drouths
and other unavoidable disasters
cause loss of crops, which FREE
quently occur and force many small
farmers into bankruptcy through
which they lose their homes, and, be-
coming discouraged, give up farming
aud seek other employment.
An institution in u general way
similar to the Credit Foncicr could
be organized in this country under
Federal charter. II could be made
semi Governmental III character, with
the Secretary of the Treasury. the
Secretary of Agriculture and two
other Government representatives as
members of the Board Of Directors.
II could be made a stock company
Of S5O,OOO,00O capital, $5,000,000 to
he sold at not less than par, with an
additional amount not exceeding $5,-
0O0. 900 To be- issued in any one year.
a. approved by the Board Of Direct
or,, consisting of the above. men
toned Govcrnmcn, representatives
aud others selected by the stock
holders. 1t could also be authorized
60 transact business in foreign coun-
tries to get the benefit of a world
market for its securities.
A thorough organization to ascer-
tain values of property offered Cor
loans would be an important part
{ the plan.
The objects Of the company should
be to loan money on mortgages not
exceeding in any case so per cent
Of the ascertained value, in amounts
to be repaid either in installments or
long terms; to purchase and sell land
mortgages, bonds or land debentures,
with authority to loan produce grow
ers' cooperative associations where
properly organized aud incorporated
under the laws Of any State or States
giving protection to lenders. Such
loans to farmers associations should
be confined to warehouses, elevators
and cid storage plants, all Of which
should be constructed under rules
and specifications approved by the
Federal Company. The loan in no
event should exceed so per cent of
the actual cost of the property,which
should be located on land owned by
the agricultural association apply
ing for the loan, or on land under
lease for a long term Of years owned
by or adjacent to railroad. where
track facilities could be had to ex-
pedite the movement Of products to
and from such warehouses.
In going to the public aud to
Washington, it should be made clear
that you are not asking the Govern
ment for funds to build up agricul-
tural credit, but only for its friendly
cooperative interest in building up
u financial institution which will, with
proper scrutiny, enable those en-
gagged in farming, to find money at
lower rates for a long period on in
stallment payments. Neither should
your action be antagonistic to pres
ent banking methods, banking inter-
ests or any national monetary sys-
tenn that may hereafter be adopted
You have the friendship Of those now
engaged in banking business. They
can and will help in any work that
means more to the producing class.
In fact you should 60 with well de.
veloped concrete plans specifically
stating what is wanted to accomplish