Arizona republican., 1913-08-27
RURAL CREDITS SOLVE
(Continued from Page One)

"These European credit systems ' he added, are of two kinds, those providing personal, short time credit for operating purposes: and those providing long time mortgage credit for works of permanence and pur- chase"
 The more highly developed short time credit systems. said the report bring all the farmers together in an organization where they assume per sonal liability for the sOciety's debts The society pays interest on deposits and loans to it's members at or C per cent; and gives to each band Of farmers the money with which it can finance cooperative selling, buying and producing organizations.
 The other kind of credit is found in mortgage bond societies. which hold long time mortgage bearing a moderate interest and automatically discharging part of their princal each year
 This form of mortgage credit would mean more money for ma chinery, more for purchasing land and for developing poor land,' said Senat-
  fewer tenants and more owners It means better rural-like conditions"
 The preliminary statement prepared by the rural credits commission and contained in Senator F1etcher's re port said in part:
 The organizations for the provision Of personal credit facilities are as highly developed as are the systems of commercial banking. The prevail
 ing rate of interest paid by the farmers for short time loans, is from four to five and onehalf per cent The terms offered European farmers are generally better designed to meet the peculiar requirements of agricul- turists than are the terms obtainable today by the American farmers"
 The personal credit" organizations. t added. are usually an operative SO cieties.
 'These short time credit societies furnish cheap, safe and elastic credit to their members by reason of their control by farmers and are Organiza tons exclusively in the interest Of farmers who operate them at nominal cost and without seeking dividend profit to such societies. said the statement
 
 of this movement in Europe that the question of rural credit ought not to be divorced from cooperation for business purposes and the general or ganizatiOn of community life in rural districts. The studies Of the com mission emphasize the necessity of defining the functions. on the one hand of the government. and on the other of voluntary organizations in promoting the development of coun- try life"
 The commission on rural credits with representatives of the American 1 government, twenty nine states. four l Canadian prOVices and several inde- l pendent American organizations. went | to Europe in April a year after the Southern Commercial Congress, and David Lubin of the International In l stitute of Agriculture. had begun the 1 movement for it's appointment. It's members studied the farming and credit systems of eighteen prin- cipal European countries. receiving | the close cooperation of the state department, the governments of for eign countries and business and fin ancial interests abroad.
 Senator Fletcher in his report to- day to the governors, urged them to undertake earnest cooperation with the rural credits commission, which has established permanent headquar- ters in Washington. The first active steps of a national character. he in- dicated, will be toward the estab lshment of an adequate system of rural banking, through which a great scheme of cooperation and country development can be built up