Daily capital journal. (Salem, Oregon) 1903-1919, 1913-07-12
SYSTEMS OF CREDIT BIG
HELP TO FARMERS THERE.
One of rs Members of Delegation From
80 States Tells of Discoveries in
European Countries.
BY Ed L. Keen.
UNITED PRESS LEASED wmE.l

American Agricultural Commission
which has been studying agricultural
conditions in Europe for three months,
according to Director General Clarence
j. Owens, who heads the delegation OF
rs members representing 30 states
which arrived in London today from
Paris. Director General Owens and
other members of the commission to-
day, for the first time agreed to pub
lish, through the medium Of the United
Press, the details Of the three months
study and the legislation that the COM
mission will urge congress to put
through. The statements are the first
comprehensive and official ones that
have been made by any member of the
commission, which has just completed a
tour of Italy, Austria, Hungary, Den
mark, Belgium, Germany, Holland and
France. The Americans will stop here
three days before touring Ireland.
They will sail on the Cedric for Amer
lea on July IS.
Everywhere" declared Director
Owens, "we have found that the won
derfully efficient farming systems of
Europea nd especially crowded Ger
many, have been almost solely due to
the systems of credit available to far.
mers. While we did not find any Eu-
ropean farmer more competent, or more
able, or more industrious than their
brothers in America, we did find that
the European farmers get more out Of
less territory than the American farm
ers. And I believe this is due to the
system in vogue Of long term loans,
cheaper money, cooperative banks and
integrity and character as an important
factor when financiers are looking for
security for loans"
DR.. Butterfield, of the Massachusetts,
Agricultural College was enthusiastic
over the work Of the commission. He
believes that its report is of deepest
interest and Of vital Importance to ev.
cry farmer in America 1T am more
than satisfied with our study abroad, "
said DR.. Butterfield. "I heartily
agree with what Mr.. Owens has said.
The great farming efficiency of Ger
many can be laid directly to the sys.
tenn Of cheaper money for the farmers
and to cooperative farmers banks. "
"'Queer banks we have seen might
well be the title Of chapter in the
commission g report" said Congress
man Moss, of Indiana, the only con
gressman in the party. Mr.. Moss was
with the subcommittee which toured
Italy, Austria and Hungary,
"The queerest cooperative bank Of
all we saw was in little town in Italy
It was located in a small room of an
old but beautiful church. The priest
was the banker, cashier clerk and
bookkeeper. He received no salary
The bank was started some years age
on capital of 1920 which represented
the cost Of the books. 1t has loans out
at Az per cent to farmers for $4,000
The bank has fat reserve of which
the priest banker is the custodian. The
bank has never lost a dollar. It costs
20 cents to become a stockholder.
"'In Hungary we found small banks
in farming communities where the gov
ernment paid the cost Of administration
so the farmers might borrow money a
9 per cent while the government at tn,
same time was borrowing at 4 per cent
"While l am doubtful If the Unitet
States could adopt the German system
firmly believe great success wOulC
follow the adoption of these system
with notifications. Conditions in Ger
many and in Europe in general ar
much different from those at home
The little banks in Germany are oftel
in the backroom of village postofficC
The postmaster, the preacher or tn
village schOolmaster is usually tn
: banker He may get anywhere fror
! $40 to $l5 a month for being banker
, The loans are long, frequently stretch
ing over period of from SO to Z
q years.
: "The people are grateful and apprC
ciatiye Of small things The opportu
nifty for investment and earning capu
= city Of money is small In some Sc,
tions Of Hungary we found that IN
, greatest factor in improving condition,
, in putting more money in circulatio
and increasing value Of property, wa
! tho money sent homo by Hungarian
|, who had gone to America, and to ador
' some of Europo's banking schemes
y would be necessary to adopt some M
ropean conditions, You can forcclos
e and turn man off his place-sell hil
y out Of house and homc-take ever,
! thing except the clothes on his bael
in three weeks in Europe