Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1913-09-03
CREDIT SYSTEM FOR FARMERS.
Conclusions of Rural Credits Com
mission Laid Before Governors.

conference of Governors. With them
sat Secretary of the Interior Frank
lin K. Lane, the personal representa-
tive Of President Wilson, to advise
them relative to policies OF the Fede-
raj government.
The report of the Rural Credits
Commission was presented to the
conference by Gordon Jones, OF Den
yer, in the absence OF Senator Flet-
cher, it's chairman.
Rural Organization Wanted.
The commission is deeply i'm
pressed with the vital importaT ce of
a thoroughly organized and united
rural population" said Senator
Fletcher in an authorized statement
from the commission which he in
cluded in his report.
I'm this respect the countries Of
Europe offer a lesson which may not
long be disregarded in America with
out serious consequences. The agr-
cultural interests of most European
countries visited by the commission
are organized along one or more of
the following lines: Credit, prOduc-
ton, distribution and social organi-
ZatiOn, for the betterment Of coun-
try life"
Definite recommendations by the
commission as the result of its ex-
tensive inves' lsation OF European
farming credit systems, will not be
formulated until certain committees
have gone through a mass of data
and prepared it for consideration Of
the entire commission.
Senator Fletcher made it clear,
however, that emphatic recommen- |
dations would be made for a system |
Of rural banking through which far
mers could secure better loans, and |
through which they could finance |
their own cooperative producing, |
buying and selling organizations.
President Wilson's recent state
ment that "a distinct system Of bank |
ing must be provided for if rural |
credits are to be successfully and ad- |
equately supplied" was referred to |
by Senator Fletcher as a promise |
that Federal legislation will soon be |
taken up, with a view to relieving |
the financial handicaps under which |
American farming is carried on.
European Credit Systems.
''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 permanent development
and purchase
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 its members at or 6
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 longtime mortgages bearing a
moderate interest and automatically
discharging part Of their principal
each year.
This form of mortgage credit
would mean more money for ma
chinery, more for purchasing land
and for developing poor land" said
Senator Fletcher in his report "It
means fewer tenants and more own
ers. 1t means better rural life con-
ditions."
The preliminary statement pre-
pared by the rural credits commits
sion and contained in Senator Flet-
cher's report, said in part:
"The organization for the provis-
ion Of personal credit facilities are
as highly developed as are the sys-
TENS Of commercial banking. The
rate Of interest paid by the
farmers for short-time loans is from
ed European farmers are generally
better designed to meet the peculiar
requirements Of agriculturists than
are the terms obtainable to-day by
the American farmers"
The "personal credit" organiza-
tiOns, it added, are usually co-opera-
tive societies.
These short time credit societies
furnish cheap, safe and elastic credit
to their members by reason Of their