New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-07-06
AGRICULTURE STARVED
TO BENEFIT INDUSTRY
Such Is Expert French Criticism
of Economic Development
of This Country.
NEED FOR RURAL BANKS
Under System Elaborated in
France 6,382,285,317 Mort
cages Have Been Granted
by Credit Foncier.
rFrom The Tribune Correspondent. J

From The Tribune Correspondent1
Paris. June 2S.-The economic develop
ment of the United States is more and
more closely engaging the attention OF
French economists. The French view is
that industry in the United States is
favored at the expense Of agriculture,
and that the production OF foodstuns and
other ailments of first necessity is not
keeping pace with the growth OF popula-
ton and the march Of industry. A better
system Of the institution OF agricultural
or land banks, 1t is Believed. would af-
ford greater facilities to farmers. Den
mark and other agricultural and stock
breeding countries are mentioned.
The French, however. naturally lay
stress on the great services rendered by
their own famous land credit establish
ment, the Credit Foncier de France. The
ambassador here of the United States
Myron T. Herrick who has studied the
question of agricultural credit in France
remarked recently that hitherto Ameri-
can political economy has been directed
to help and protect the Industries OF the
United States, and to open up all the
markets OF the globe TO American manu-
features Labor was, therefore. requisi-
toned for industry 10 the detriment OF
agriculture
notwithstanding the vast resources in
land and the abundance Of the croos,
agriculture in the United States is be-
coming year by year less able according
TO statistics, TO meet the demand OF con-
sumers. The reason, according to French
economists, is not far to seek. The farm
err deprived Of the facilities Of credit so
readily obtained by the manufacturer is
unable TO develop his field OF operations,
and therefore whole regions are left I'M
cultivated. Mr.. Herrick has adopted for
his proposed land bank system the main
features OF the Credit Foncier
Big Real Estate Loan.
At the recent general meeting Of the
shareholders OF the Credit Foncier some
new and interesting facts were given.
The large number OF realty bonds in cir
culation induced the Credit Foncier to
issue early in the year 5000 900 loan
on real estate at slk per cent. This loan
financial year the Credit Foncier allowed
SOS loans on mortgage, representing a
sum of s4s,O5s.S6l, an increase Of about
thirty-two million dollars over reimburse
ments.
Since the foundation OF this great
realty and land bank the total number
Of mortgages granted up to the end OF
last year amounted TO 6.3s2 285, 81 The
balance account on loans not redeemed
or reimbursed stands at the figure OF
s5i2, ,2j3. A supplementary dividend Of
about s 30 is now payable. The number
OF municipal and communal loans
throughout France for local improve
ments has also largely increased. The
profits likewise to shareholders have
steadily grown.
As to the Russian Debt.
From time to time the Russian gov
eminent has been in the habit Of pub
fishing through the medium OF Paris
bank the situation OF the various Rus
sian loans which constitute the Russian
debt. The latest returns show that the
Russian government has been able 10 re-
duce the indebtedness OF that empire by
the sum of slllOO0,0O0 within the last
three years While building new railways,
needed even more for agriculture than
for industry. the state has recently
been reducing old debts. Whence come
the large sums OF money which permit
these disbursements without touching
the prosperous development OF the
country
The answer is that several good years
for agriculture with increasing crops
have done even more than industry 70
feed the people and bring money into the
Golfers Of the state. The motive power
which has given new life 10 Russian
agriculture is the institution OF agricult-
ural banks, which enable the peasants
and farmers TO borrow on good terms IN
stead OF having TO depend on the often
usurious methods of former days.
BY the foundation of these agricultural
banks, which supply the sinews OF labor
TO agriculture. Russia seems in & FAIR
way to become the principal granary for
the rest of Europe as we'll as for her
self The state is likewise developing
the railways, which will give further
impetus TO rural as well as industrial
activity The land banks are likely TO
prove the backbone OF agricultural pros
perity in Russia, and much OF the capital
of those land banks is supplied by French
investors.