The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-04-18
FARMERS CREDIT
IMPERATIVE NEED
COOPERATIVE SYSTEM Is sUG-
GEsTED As BEST METHOD or
MEETING PROBLEM.
LEND MONEY ON LAND
GERMANY HAS CREDIT ASsOCIA-
TIoN SYSTEM, WHICH. If IN
TRoDUCED HERE, WOULD
GREATLY HELP.

The imperative need of a system of
cooperative credit for the Southern
farmer, and the best method of meet
ing that need is problem which was
not solved at the conference held yes
terday afternoon in the AUDITORIUM of
the Christian church annex, but there
was an interesting discussion of the
subject, and some helpful suggestions
came from sources flanked with
knowledge gained from experience
and investigation.
The farmers present heard II. g.
Price. of the Ohio Agricultural col
lege, who has just returned from a
years residence in Germany where he
investigated the land mortgage credit
associations Of that country which
employ the amortization system. rms
system Mr.. Price explained IN some
detail The system, briefly put CON
templates long zine loans on farms
which are paid off al a fixed rate or
interest part of the payment being
applied to the loan and part to the
interest Germany has also 5000
rural land banks which make bust
ness of loaning money to the farmers
a majority Of whom are of the
peasant class and practice intensive
farming.
Money Loaned on Farms.
Money is loaned to industrious
farmers on their land. the land being
mortgaged at what it is assessed for
taxes. which is two-thirds Of its real
value In both of these systems the
character OF the man himself is chiefly
taken into considera tion and both Of
them, Mr.. Price said, constitute a Sys-
tenn OF capitalization of character.
The Torrens system Of land I les
is employed. The German land credit
sHstem has been in existence over a
hundred years and did not replace the
banking system of the country, but
was supplemental Mr. Price declared
that there is no better security than
arable land, and it is time the South
crn farmers wake up to their oppor-
tunities. Perhaps the German sys-
TEN can not be transplanted bodily
to this country but the success of the
system is amply evidenced by the
prosperity of the German peasant
farmers, who have made that country
the leading agricultural country in the
world
Limited Credits.
T. c. Caldwell. of Lakewood, MINI.
one of that States best known bank
presidents-who is a member of the
comm ission appointed to go abroad
anu ilkdAt q @tAAN w ttA' IAfAA - EfN-tA'A
systems Of rural credits-told the
farmers what his bank IS doing for
the farmer by a system of limited
credits. He believes If the farmers
viii organize their own credit assoCia-
tons that they can reduce the rate
of loan interest as low as ; per cent
Mr. Caldwell suggested the establish
ment in rural sections of cooperative
banks which should return their
profits TO their patrons, after the plan
Of the cooperative buying and selling
associations. Security he emphasized
as the one asset necessary TO credit
and TO accomplish their ends the
farmers must have effective organiza-
tons Mr. Caldwell took occasion TO
tell his audience that this commission
of which he is member Will pay its
own expense abroad and when he re
turns he Will be able to give the
farmers some Information that will be
not only interesting but instructive.
What Farmers Need.
John Lee Coulter. of the United
States census bureau outlined what
he conceived to be the needs Of the
American farmer In way of a rural
credit system, and Leonard 6. Rob
inson who is general manager Of
the Jewish Agricultural and Industrial
Aid society. told the audience some
thing Of the system pursued by his or
ganizatiou in making loans to strug-
Cling people of his faith who desire
to engage in business or agriculture
& l.. Bowles, Of New Decatur, Ala.
outlined the plan of the Farmers and
Merchants Credit company, recently
organized in that State. of which he
is the head. This concern is patterned
after the successfully operated Ger
man land banks, loaning money to
farmers on long time first mortsage
making these mortgages the basis of
n bond issue and selling the bonds
The farmers themselves are to be
stockholders, the shares selling for $40
each,
Have Free Discussions.
The farmers Joined freely in the
discussions of the various plans and
ideas suggested by various speakers,
and there were farmers present from
practically every State in the South.
1t was brought out very forcefullv
7 that system of credit is absolutely
/ essential for the development of agri-
/ culture, for few farmers have any
capital stock save their lands, and if
loans are not to be obtained at a
reasonable rate of interest with his
farm as security his hands are tied
The situation in Virginia was stressed
forcibly, one farmer declaring that he
could not develop properly his big to-
bacco farm for lack of funds, and to
get a loan he must pay from 2 to / .
per cent for the money.
Mr.. Lampson, of South Carolina
who is q good speaker If he is a
farmer, created some interest and
amusement by Directing to any credit
for the farmer-he was afraid, after
the farmer found out how he could
obtain loans on his farm, it would lead
him to life of riotous extravaganza.
He had no patience with the pessimis-
tic utterances of Colonel Exan, of
Texas made in the auditorium the
previous night for he entertained no
fear of starvation for his posterity
There is a gold mine in the soil. he
declared, which viii furnish good
living for he and his posterty for
thirty generations to come, and all
they had to do was to dig it out He
wanted no credit and no loans
The conference on cooperative
credits, of whicl- DR.. c. c. Thach. Of
Auburn, Ala, is chairman. will be re-
sumed this afternoon, at the same
time and place. and the farmers will
hear several noted speakers, among
them being Harvie Jordan, president
Of the Southern Cotton association,
and M. Alphonse Desjardins, of Can
ada, who will explain the system in
use in that country.
To Visit Hampton.
The Chesapeake and Ohio special
which Will carry sucb daIagotac ~.