Deming graphic. (Deming, N.M.) 1903-1948, 1913-05-13
SQUARE DEAL FOR
!. FARMERS DEMANDED
IMPROVING FARM CRED
ITS IN THE UNITED STATES
Address by Homer G.. Price, Dean
College of Agriculture, Ohio
State University, to the First
National Conference ON Market
ing aud Farm Credits, April 10.

ing and Farm Credits, April 10.
American farmers have never been
more prosperous than they are at
the present time. Prices for farm
produce are high, crops are good
and farm land i, constantly adyanc-
iug in value, Why then is the queS-
ton of farm finance occupying such
u prominent place IN the public
mind believe that it Is because
of lhi. prosperity that farmers are
awakening to the fact that they lack
any adequate system of financing
their enterprises. 1t is the prosper
ous business that can use capital to
advantage and it Is the prosperous
farmer who can afford 10 borrow
capital to invest in his business. But
the industry of agriculture is made
up of small indcpcud ut commercial
unit, and lacks the advantages Of
combination found IN other indus
tries. Particularly is this So in the
matter of credit and the individual
finds himself seriously handicapped
IN the matter of financing his enter
prisc~ rs compared with large COM
mcrcial interests of the city.
We have been entirely self-sa;is-
fed with our agriculture in the past,
and have rcveled in exploiting virgin
soils. We have had little time or
inclination to know what the older
countries were doing. But all Of a
sudden we have awakened to the fact
that we do not possess all that l.
worth knowing in agriculture and
that in agricultural credit, co-opera-
ton, distribution and farm organl-
cation We are wocfully behind some
Of our European neighbors.
Foremost among the nations IN IL
uancing their agriculture stands
Germany. For nearly century and
half they have successfully con-
Quoted their Landschaftcn or land
mortgage association, II" oldest and
! believe the most satisfactory instl'
tuition tina, has been developed tc
[ furnish real credit chat is, credit
4 on real cstate) to farm owners.
! The great advantage of the Lands
\ chaltcn i, the fact that II serves a.
the medium by which farm mortgage.
are converted into negotiable secur
= ties by means of mortgage bonds
j We recognize that there is no bette
i security than arabic farm land an,
4 no form OF property less liable t.
i b. destroyed by act of man or God
1 But because of the difficulty o
j transferring title in real estate, tn
q delay occasonod by legal procedur
4 Of foreclosure and the tedious pro
a cess of examining the title TO owner
q ship, land is not the most desirab!
security for credit and for man
II kinds of investments is not accepted
Through their land mortgage asso
d Citations the German farmers are ear
g wing al the present time one blllio
u dollars in farm loans on which the
are paying on the average t pc
II cent interest. BY means of the
4 mortgage bonds (Pfandbriefen) the
farm mortgage securities are mac
II negotiable as Government bonds ar
are gilt edged securities, accept'
n in all circles. There is no forell
u system Of agricultural credit that
\ can hope to transplant bodily 10 tn
N country any more than we can hoI
to transplant any other foreign inst
~ tuition. Our customs. laws, traf
tons and conditions are different a
4 all that we can hope to do is to Ia
principles and adapt them TO o
n conditions so that We may accom-
III hsh the same results. If we will pr
N fit from the experience of ott
countries and take the best out
their systems we should be able
develop n system of rural credit
America better than anything Il
n now exists.
Combining my remarks to real or,
it, that is, loans secured by ia
lands, the things that we need to
complish by means Of rural ere
system, rs ! see it, are: |, to c,
vert farm mortgages into securit
that are readily negotiable; ., to p
vide long time loans that are rep
on the amortization plan and VIII
cannot be called in except for eau
3, to convert the farm mortga
into standard securities that
n be accepted for all classes of inv'
ments; !. to secure a rate of I'M
- est commensurate with the secu
given; 3, to provide that loans l
- be made and repaid with mimi
- expense and loss Of time on the |