The Oroville weekly gazette. [volume] (Oroville, Wash.) 1905-19??, 1913-01-24
0F|NTEREST TO FARMERS
Rural Cooperative System
Promising Cheap Money
for Farm Improvement.
THREE PER CENT INTEREST
Based on a Plan That Has Been
In Successful Operation In Eu-
rope for Many Years.

Investigations of European rural
credit associations carried ON by
agents of the federal government un-
der instructions of President Taft
point the way to American farmers
for securing cheaper money for the
purposes of purchasing and develop
ing land and for the operation of their
farms.
Last fall at a meeting of the South
ern Commercial Congress held at At
lanta, Georgia, the question of farm
ers cooperative credit associations
was discussed, and the systems of
Europe were explained by David Lu-
bin, the American representative to
the International Agricultural Insti-
tute at Rome. At that time Governor
Hay endeavored to find public spirit
ed citizen sufficiently interested in
this question to represent the state of
Washington at the Atlanta meeting.
but unfortunately was unable to in
duce anyone to attend. Since then
President Taft addressed letter to
the governors of the several states di-
recting their attention to the subject
of rural credit associations and the
great benefit to be derived in this
country from such organizations and
recommending that the states enact
the necessary laws to encourage the
formation of such societies. Acting
upon the presidents suggestion, Gov
ernor Hay called the attention of the
legislature to this subject in his re-
cent message. The governor urged
that a committee or commission be
authorized to study the whole ques-
ton of rural credits, investigate the
systems so successfully operated in
Germany and France and prepare a
draft of the legislation necessary in
this state to provide for the creation
of farmers credit societies here.
The German cooperative credit sys-
TENS have given wonderful impetus
to agricultural development in that
country, and have added greatly to the
economic stability of the entire en-
pire. rhey have proved wholly .prac-
teal L it is claimed that there has
never been failure involving loss to
the individual farmers. They have
reduced interest rates to farmers from
maximum of twelve per cent. to a
mi um of 3per cent. per annum.
The aver e length of time over which
the loar run for the purpose of pur-
chasing and developing land is thirty
years and some loans cover a period
of seventy-five years. Thus abundant
,ney at low rates of interest on easy
payment terms is provided for the de-
velopment of agriculture.
In this country agriculture ranks
first in economic Importance. Statis-
tics show that 81 per cent of all the
Industrial worR of the country are
engaged in farn.il.. which is three
times the number of those engaged in
-ommerce-the next most important
q. dustrial division. In spite of this
= act, practically every industry can
command cheaper money than the
farmer This is almost solely due to
the fact that combination and organi-
zation of resources has been perfected
to so much greater extent in the other
Industries in this country. BY follow
ing similar methods the farmers can
get similar results; in fact even bet
ter results, because of the greater sta
bility of their resources. The Euro
pean farmers have recognized this
fact, and the systems they have per-
fected can readily be transplanted to
this country.
Myron T. Herrick, American ambas-
sador to France, acting under the di-
rection of the president has studied
the rural cooperative credit associa-
lions of France and Germany, and re-
Gently submitted a report in which he
gives the following clear and concise
description of the theory and practical
application of these farmers credit
organizations:
Farmers need funds for two gener-
al purposes: first for the purchase of
property and for its permanent i'm
provement; and second, for operation,
that is, the purchase of live stock, i'm
plements, seed and fertilizers, and the
harvesting of crops. These two gen.
eral divisions of agricultural capital
requirements should be preserved In
the nature of the loans that are made
to secure funds. Each of these two
divisions can and should support its
own credit.
For the purpose of buying land and
permanently improving it, farmers
should be able to make mortgage loans
that have a long time to run Money