Semi-weekly herald., 1913-07-10
AGRICULTURAL COMMISSION
URGES LONG TIME LOANS

LONDON, England, July g.
Longer terms for loans cheaper
money for farmers, and establishment
of cooperative banks in rural districts
are some of the important reforms
which will be urged by the American
Agricultural commission which has
been studying agricultural conditions
in Europe for three months according
to Director Genaral Clarence ]. Owens
who heads the delegation Of rs men,
bers representing 80 states which ar
rived in London today from Pairs.
Director General Owens and other
members of the commission today,
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
commission will urge congress to put
comprehensive and official one that
have been made by and member of
the commission, which has just COM
pleted tour of Italy, Austria, Hun
gary, Denmark, Belgium, Germany,
Holland and France. The Americans
will stop here three days before tour
ing Ireland. They will sail on the
Cedric for America on July 1s.
Everywhere, declared Director
Owens, I'VE have found that the won
derfully efficient farming systems of
Europe and especially crowded Ger
many, have been almost solely due to
the systems of credit available to
farmers. While we did not find any
European 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 Ameri-
can farmers. And / believe this is
do to the system in vogue of long
time loans, cheaper money, co-opera-
tive banks, and integrity and charac-
ter as an important factor when fl
nanciers are looking for security for
loans"
Doctor Butterfield, of the Massasa-
chusetts Agricultural College WAS en-
thusiastic over the work of the COM
Mission. He believes that its report
is of deepest interest and Of vital i'm
portance to every former in America.
81 am more than satisfied with our
study abroad" said DR.. Butterfield,
81 heartily agree with what Mr..
Owens has said The great farming
efficiency of Germany can be laid di-
rectly to the system of cheaper money
for the farmers and to the co-opera-
tive farmers banks"
"'Queer Bank we have Seen might
well be the title of chapter in the
commissions report" said Congress
sman Moss, of Indiana, the only con-
gresham 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. 1t was located in small room
of an old but beautiful church. The
Priest was the banker, cashier, clerk,
and bookkeeper. He received no sal
ary. The bank was started some
years ago on capital of 1920 which
represented the cost Of the books.
II has loans out at 1-2 per cent to
farmers for $4,000. The bank has a
fat reserve of which the priest-banker
is the custodian. The bank has never
lost dollar. 1t costs twenty cents
to become stock holder.
'In Hungary we found small banks
in farming communities where the
government paid the cost of admin
istration so the farmers might borrow
money at two percent while the gov
ernment was borrowing at four per
cent.
while l am doubtful whether the
United States could adopt the German
system, firmly believer great sue
cess would follow the adoption Of these
systems with notifications. Cond-
tions in Germany and in Europe gen.
orally. are much different from those
at home. The little banks in Ger
many are often in the backroom of a
village postoffice. The postmaster,
the preacher or the village school
master is usually the banker. He
may get anywhere from $40 to SIS
month for being banker. The loans
are long, frequently stretching over \
period of from so to rs years.
"The people are grateful and ap-
preciative of small things. The op-
portunity for investment and earning
capacity of money is small. In some
sections of Hungary we found that the
greatest factor in improving eohdi-
tions, in putting more money in cifes-
lation and increasing value Of proper.
ty, was the money sent home by Hun
garians who had gone to America, and
to adopt some of Europe's banking
schemes it would be necesssfy to
adopt some European conditions. YOU
can foreclose and turn a man off his
place, sell him out of house and Nome,
take everything except the clothes ota
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