Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-05
FARMERS
SERFS UNDER
j. 8. LAWS
John Sprunt Hill, Of American
Commission Abroad, RecOunts
Needed Credit Reforms.
BY JOHN SPRUNT HILL.
North Carolina Member Americas
Farnl Credits Commission.


Farm Credits Commission
Special Cable to The Atlanta Georgian.
PARIS. July 5.-The banking sys-
tenn of America has until now been
conducted too much on city lines. 1t
has neglected the farmer.
Investors will not furnish money to
the farmer at the same rates of in
terest as to railroads and corpora
tons:
Firstly, because of antiquated laws
in a majority of the States taxing
mortgages at from to 3 per cent,
while railroad bonds, payable TO bear
er, and therefore easily concealed,
practically remain untaxed;
Secondly, because of the lack of
machinery for placing land mort
cages before the investor.
U. S. Banking Restrictions.
We have one banking institution
for about 1000 people in the United
States, but national banks are pro-
hibited by law from lending money
on real estate and a great majority
Of the State banks, savings banks and
trust companies. for some reason
which they are unable satisfactorily
to define, share this prejudice.
Though along this line in the
United States is moulded almost en-
tirely by city bankers who do not
come n close. contact with the farm
er and small land owner. City bank
ers are apt 10 assume that principles
governing the conduct of business in
cities should be applied to the f1nan-
cial affairs Of farmers. The result
is that the merchants and manufac-
turers and business men in cities
have virtually all the machinery for
obtaining cheap credit in their hands
while the average farmer is thrown
back on such forms of high priced
credit as he can obtain from local
merchants.
Financial Serfdom.
The small farmer is. therefore,
restricted in the choice of places for
buying his supplies, forced TO pay
nj least 80 1-3 percent higher for
supplies than other persons paying
cash, is also frequently restricted as
to the place for selling his products,
denied the benefits OF competitive
pIltGb, anu III many cases TeOuCeu 10
a state of financial serfdom.
There is no such discrimination in
Europe Generally speaking. Cont
mental Europe furnishes sound elias
tic credit to the farmer on as good
or even more favorable basis than
to any other class. We need a cam
paign Of education along this line in
the United States that will promote
a better understanding between our
bankers and farmers.
We need a system in the United
States by which land mortgages can
be quickly and economically mobil-
lied so that collateral trust bonds
issued on these aggregated mort
cages can be made readily negotiable
and marketable.
What is the plain story of Europe
should be the story Of the United
States. namely. that farm lands on
basis of real value, earning power
and stability are the best asset IN
the country. Some day doubtless
President Wilson and Bryan and Taft
will give more attention to the farm
ers and less to cities.
In the United States we need CO.
operation to still the raging winds
Of discomfort and give relief in the
sunshine of equal opportunity of
organized democratic manhood and
brotherly love
Need of Co. Operation.
Cooperation is necessary to check
socialism, which tends always to
drag things down to one level Co
operation is essentially American.
Socialism is not American. In many
parts of Europe cooperation flour
ishes and land is considered a safer
and more favorable basis of credit
than stocks Of corporations and other
securities.
The foolish laws and more foolish
prejudices against extending credit
on land as security, should be abol-
ished. and as in Europe, money adj
venced ) per cent or less, should
be brought within the reach of the
small farmer Our antiquated laws
should be reformed. and our farmers
should know some of that new free
dom" Of whom President Wilson
speaks and hopes so much.