Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-08-27
CO0PERAIl0N
SHOULD Be
MUCH CLOSER
Of the Address at
The GovprnOr's Convention
IN Colorado

cooperation between the government
and settlers in the reclamation Of
many sections of the arid west, was
the keynote of the address Of Secre.
tary OF the Interior Lane, before the
Fifth Annual Conference of Cover
nors which opened today.
Farmers of the United States speed
lily must come TO an understanding
Of the value Of organization and union
OF forces in producing and selling
farm crops, and in the financing of
agricultural operations in this coun.
try is to keep pace with the develop
ment Of European nations.
This was the message from the
American commission on rural cred
its. delivered to the Conference Of
Governors here today in a report by
Senator Duncan U. Fletcher, of Flori-
da, chairman OF the commission. The
first general report upon the extern
sive European investigation made by
the American commission. under joint
authority of congress, the govern
ments Of 20 states and the Southern
Commercial Congress, was laid be-
fore the governors by Senator Fetch
er, with recommendations for increas-
ed activity by the states in the extern
sion of rural credits and cooperative
farming enterprises.
"The commission is deeply impress
ed with the vital Importance Of a
thoroughly organized and united rural
population" said Senator Fletcher, in
an authorized statement from the
commission which he included in his
repOrt. ..
'In this respect the countries Of
Europe offer a lesson which may not
long be disregarded in America with
out serious consequences. The agri-
cultural interests of most European
countries visited by the commission
are organized along n or more OF
the following lines. Credit. Droduc-
ton, distribution and social %organiza-
ton for the betterment of country
life" at.
Definite recommendations by the
commission as the result of its ex-
,tensiye investigation 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 recommends
lions would be made for a system OF
rural banking through which farm.
ers 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
adequately supplied" was referred tc
by Senator Fletcher as a promise that
federal legislation will soon be taken
up, with a view to relieving the finan-
cial handicaps under which American
farming is carried on.
'"These European credit systems
lie added, "are OF two kinds, those
providing personal. short time credit
for operating purposes; and those
providing long time mortgage credl
for works Of permanent development
and purchase" !,
The more highly developed short
time credit systems, sal dthe report
bring all the farmers together in an
organization where they assume Der'
sonnal liability for the society's debts.
The society pays interest on deposits
and loans to its members at 5 or .
per cent; and gives to each band
of farmers the money with which 1t
can finance cooperative selling. buy
ing and producing organizations.
The other kind of credit is found
in mortgage hond societies which hold
long time mortgages bearing a mod
crate interest and automatically dis
charging plrt Of their principle each
year.
"This form of mortgage credit
would mean more money for machfn.
cry, more for purchasing land and for
developing poor land" said Senator
Fletcher in his report. ut means
fewer tenants and more owners. 1t
means better rural like conditions"
The preliminary statement prepar-
ed by the rural credits commission
and contained in Senator Fletcher's
report said in part:
1.-THE organization 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 farm
er for short time loans, is from four
to five and n half per cent. The
terms offered European farmers are
generally better designed to meet the
peculiar requirements o agriculturists
than are the terms %obtainable today
by the American farmers"
The personal credit" organizations.
It added, are usually cooperative 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.
lions exclusively in the interest OF
farmers who operate them at nominal
cost and without seeking dividend
profit to such societies. said the
statement.
'It Is the opinion Of many leaders
OF this movement in Europe that the
question Of rural credit, ought not to