Daily capital journal. (Salem, Oregon) 1903-1919, 1913-12-24
System of Rural Credits Would Be One
Method as It Would Make Farm
Life More Pay.
FARMERS IN EUROPE HAVE
BETTER CREDIT FACILITIES
Department of Agriculture Investi-
CATION Shows Problem Of Money
At Reasonable Rates Serious.


Washington, Dec 24.-To make farm
life more profitable as well as attractive
through a sane system of rural credits
and to end the yearly exoduses Of farm
ers' boys to the city is the purpose Of
the government s efforts to obtain the
rural credits legislation at the earliest
possible time, and the goal toward which
the national legislature is working was
explained by Representative Robert j..
Bulkeley, of Ohio, chairman of the
house committee which is investigating
the subject. Chairman Bulkeley offers
the following explanation to the million
or more farmers of the country through
the United Press:
Although prices of agricultural prod.
ucts have mounted so high that the pub
lie justly complains of the cost Of liv-
ing, yet the returns for farm labor bas
not sufficiently increased the income to
induce that development Of agriculture
which the country ought to have. In.
deed, we are confronted by the problem
Of how to keep the farmers boys on
the farm, as well as by the problem at
attracting new hands to the farm. And
all this has an important bearing on the
high cost of living. The future Of our
country depends largely upon develop
ing a large number Of independent
farmers, owning the land which they
work; but unfortunately there is pres
ent tendency toward tenant farming,
as well as a tendency for farmers boys
to leave the farms for the great cities.
These tendencies must be met by maxi
ing farm life more attractive, and in
order that this may be accomplished
farm labor must be made more profit.
able. To increase the farmers facili'
ties and to reduce the rate Of interest
paid by him will make farming more
profitable, not only by direct savings
in interest charges, but also indirectly
by affording the farmer the means by
which to develop his land in such 0
manner as to obtain the best results
from it. And if we can make the own
err of mortgaged farm feel more SO
cure Of his position, we shall increase
not only the care and attention that he
will give to the land, but also increase
his measure Of satisfaction in his work
In Europe, the farmers have better
credit facilities and pay lower rates Of
interest than our farmers. This may
be partly due tot he more developed
condition of their countries, but it is
without doubt, largely due to their co
operative efforts, and to Legislation thai
favors rural credits.
Must Be Long Time Loans.
Generally speaking, loans to farmer
must be far longer periods than loans I,
merchants and manufacturers; and tn,
banks when loaning to farmers mus
take into consideration that the farme
will not be able to pay his note unit
his crops are harvested and SOLD. Tn
National banks, which must keep thei
resources ever ready for the actiy
needs Of their depositors, necessarily
therefore, feel some embarrassment /
lending to farmers, except within rath
er conservative limits. II is not eas
for the American farmer to reach tn
investor who can readily carry hiI
through the season without demandin
the return Of the money loaned. Th
farmers Of Germany and other EuroT
can countries have their cooperativ
credit associations, which meet thi
need
IN practically all countries of Europ
there are land mortgage association
and cooperative societies dealing J
. short time credits. Ordinarily the'
organizations are associations Of bo
. rowcrs absolutely controlled by the bo
. rowers themselves. In this country "
/. have numerous building and loan Al