Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-04-26
COMMISSION or AoRicULruRE
COOPERATION LEAVE FOR
NAPLES.
HOPE TO EVOLVE PLAN
TO MAKE FARM LOANS EASIER
Report Of Commission to Be Placed
Before Congress and Before Gov
ernors' confsrsnee-systsm Of Farm
Mortgage Banks and Development OF
Lands Anticipated.

agricultural cooperation sailed for
Naples on the Saxonia to spend three
months in Europe studying systems OF
rural credits. For the detailed knoWl-
edge which they will thus obtain they
hope to submit to the United States
government comparative plan for the
easing of difficulties experienced by
American farmers in obtaining long
time loans on their land.
One Of the methods advocated by
Myron T. Herrick. ambassador to
France. who probably VIII accompany
the commission during portion OF It's
Journey, is the issuance OF twenty to
fifty year bonds backed by chain OF
so-called farmers state banks" ana
secured by farm realty. These bonds, II
has been suggested. could be listed on
the stock exchanges OF the world. The
French and German system of rural
credits will be closely studied.
Members of the commission repre-
sent officially the United States gov
ernment and nine state governments.
Senator Fletcher. of Florida, chairman
of the body. and Senator Gore, OF Oh
lahoma. were among those sailing.
The commissions report Will be
placed before congress and the next
governors conference to be held IN
August at Colorado Springs. The last
governors conference adopted a reso-
luton calling for united action on the
part of all governors in the union to
bring about its adoption by their lesis-
latures should two-thirds OF the goyer-
nors approve It.
Backed by Bankers.
The work Of the commission Is close
" connected with the efforts OF the
banking and commercial interests to
secure currency reform. The principal
claim Of those seeking currency reform
Ia that under the present banking sys-
TEN which permits banks to rodep0sie
their funds with other banks who IN
turn deposit them in Chicago or New
York, the tendency is to collect the sur
plus of the nations funds in the big
speculative centers where they stimu-
late stock gambling. The currency re-
formers want permission extended the
banks to lend more freely and with bet
ter returns to those engaged In lgiti-
mate commerce and manufacturing
work. The American Commission on
Agricultural Cooperation similarly
wants g supplementary banking sys.
tenn built up which will be controlled
by the farmers and which will divert
a. large portion Of the savings OF rural
communities to the development of the
farms It is claimed that in Germany
such a system has been able to sup
ply as high as SO per cent Of all the
r,oDev reu,,ired by the German farmers
for their operating expenses from such
deposits. Similar systems are In opera
ton in nearly every country Of Europe.
1t Is to study the operation OF these
systems that the commission is visiting
those countries.
The second attempt Of the commis-
sion will be to secure the establish
ment Of a mortgage banking system III
the United States. Such system In
Germany has brought over 1900, ,000,O 200
to the German landowners for the de-
velopment and improvement of their
land. In France the mortgage bonds
of the Credit Foncier which are only
the farmers mortgages under a differ
ent form, sell at lower interest rates
than even first class Industrial bonds.
1t is declared that if a mortgage bank
ing system could he established in the
United States billions Of dollars of adj
ditional money could be secured for the
farmers at much lower rates and on
better terms and that with the great
development in American farms which
this money would make possible, the
problem of food production in the Unit
ed States. which is rapidly becoming
worse. would be solved forever.