The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1913-10-31
PERTINENT news OF.
. STATE WITH OUR
own COMMENT
Farmers of Rupert Organise
q Bank BY and For (.
the Farmers.
BARBER co, GETS TIMBER
Lingenfelter Scheduled for Removal
Fremont County Will be Cut Into
Three-Beach Urges Commercial
e. Clubs to Get Together-BoiseW Wants
to Get Power From Arowrock.

A number Of farmers at Rupert met
Saturday to organize bank that will
be operated by the farmers and for
the farmers Its purpose is to loan
money exclusively to farmers at low
rate OF interest. This is said to be
the first bank of the kind in the west
and it will be watched closely 1t is
a step toward system of rural cred
its along the line Of the systems in
Euse in several European countries. AS
special laws authorizing and regulat-
ing such banks have not been enacted
lit is questionable whether or not this
bank will accomplish. its purpose. 1
Il There is no doubt but that farmers
can successfully manage a bank in
their own interests but that is NOT
the problem with which they are con-
fnonted. The available capital in, any
farming community is not sufficient
for the development Of that comrnu-
nifty in SO out of a hundred cases. In
consequence it becomes necessary to
secure outside capital. The Rupert
bank will not accomplish this all
though it may, be of great advantage
to. the farmers. The problem with
which farmers are confronted is that
of diverting investment money into
the farm loan channel. There are,
millions of dollars Of capital seeking
investment in this country The first
thing this capital demands is security.
II The rate Of interest is secondary
consideration. Under our present
pert bank will accomplish anything
great for its farming community. It
simply has behind it the integrity of
its Stockholders and the assets they
Il have put into it,. In order to establish
rural credits upon a sound foundation
European countries have found it nee
essary to rigidly inspect and regulate
associationss engaged in the business.
Special laws were enacted authoriz-
ing and regulating associations or
gained Tor this purpose. In Europe
there are several systems in use. The
cooperative rural credit system Of
Germany is thought to be the most
practical for this country David Lu-
bin, delegate of the United States at
the international Institute of Agri-
culture at Rome, Italy, is firmly con-
vinced that the Landschaft can be
adopted in the United States but UNI
der the same regulations as obtain in
Germany. The plan of the Land
schaft is simple and issreadily under
stood by any person of average intel
ligence. A body of landhofders in
any community form Landschaft,
As operated in Germany this Land
schaft has limited functions, restrict
ed in the main to the tfusteeship oi
the mortgages given BY its members
on their lands. On these mortgages
II issues its bonds for amounts vary
ing from u to = of.the appraised
value of the land. The member OF
the Landschaft is given the bond OF
the Landschaft when he makes a loan.
He must then find purchaser for the
bond. In order to assure a ready mar
ket at low rate OF interest strict
government regulation of the land
schaft is absolutely necessary. The
member .pays to the Landschaft the
interest and amortization on the bond
until the debt is paid. In case he fails
to pay the interest, principal or both
the Landschaft takes possession OF the
/. land and sells it to the highest bidder
After deducting the amount of ths
loan, interests and costs, the balance
rover. In Prussia these proceeding!
are taken without recourse to thu
courts. This same power must b.
vested in the association in the United
States if the system is to be success
In order that there may be no fraud
or injustice, strict government regu
lation is again necessary. AS to tn,
market for Landschaft bonds Mr.
Lubin compares these bonds with tn,
German government bonds, On Jun,
Is these two bonds were listed on tn,
stock exchange as follows:
Gov. Bonds Landschaft
Il ~ ;....... 1900 10000
3SA% ...... $50 $500
81 $50 ....... 748O $3.50