Imperial Valley press., 1913-12-24
Bulkeley Explains
The Rural Credits
(By United Press Associations)

EXCUSES OF farmers DoyS Jo Tile Cits
! is the purpose of the government
efforts to obtain rural credits legisla
tion at the earliest possible time, ane
/ the goal toward which the nationa
legislature is working was explained
by Representative Robert j. Bulkeley
of Ohio, chairman of the house com
mittee which is investigating the sub
ject. Chairman Bulkeley offers the
following explanation to the million
or more farmers of the country
through the United Press:
BY Robert j. Bulkeley.
Representative from Ohio
Written for the United Press)
Although prices of agricultural
products have mounted so high that
the public justly complains of the cost
of living, yet the return for farm la
Dor has not sufficiently increased the
income to induce that development Of
agriculture which the country ought
to have. Indeed, we are confronted
by the problem of how to keep the
farmers boys on the farm as well as
by the problem of attracting new
hands to the farm. And all this has
an important bearing on the nigh
cost of living. The future of our
country depends largely upon devel-
oping a large number of independent
farmers, owning the land which they
work; but unfortunately there is
present tendency toward tenant farm
ing as we'll as tendency for farm
ers' boys to leave the farms for the
great cities.
These tendencies must be met by
making farm life more attractive. and
in order that this may be accom-
plished farm labor must be made more
profitable. To increase the farmers
credit facilities 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 farm
er the means by which to develop his
land in such manner as to obtain
the best results from it. And if we
can make the owner of mortgaged
farm feel more secure 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 to the more developed
condition of their countries, but it is
without doubt largely due to their CO.
operative efforts and to legislation IA
voring rural credits.
Generally speaking, loans to farm
ers must be for longer periods than
loans to merchants and manufacture
ers; and banks when loaning to farm
ers must take into consideration that
the farmer will not be able to pay
his note until his crops are harvested
and sold. National banks, which must
keep their resources ever ready for
the active needs of their depositors,
therefore, feel some en-
barrassment in lending to farmers
except within rather conservative
limits. 1t is not easy for the Amerl-
can farmer to reach the investor who
can readily carry him through the
season without demanding the return
of the money loaned. The farmers
of Germany and other European coun-
tries have their cooperative credit as
sociations, which meet this need.
In practically all countries of Eu-
rope there are land mortgage assocl-
ations and cooperative societies deal
ing in short time credits. Ordinarily
these organizations are associations OF
borrowers absolutely controlled by the
borrowers themselves. In this coun--
try we have numerous building and
loan associations similar in many re-
spects to the European land mortgage
associations, but the work of these as
sociations has been rather in the cities
than in the rural districts, though
some of them are making loans on
farm lands.
Figures now being gathered by the
department of agriculture show that
the problem of adequate credit facill-
ties at reasonable rates of interest Is
one which demands serious attention
in this country. 1t is to be noted
that each of the European countries
that has worked out an advanced sys-
tenn of rural credits has been obliged
to adapt the system to its own pecu-
liar national conditions. In other
words, while we may say that Europe
generally has advanced far ahead Of
us in its treatment of this problem,
we cannot fail to notice that each
country has developed its own national
system of rural credits.
And the preliminary study has con-
vinced the rural credit subcommittee
on banking and currency that it Will
be necessary for US to develop an
American national system, as it will
not be possible to find ready made a
system suited to our needs.
Much may be learned from study
of the several European systems and
our own building and loan associa-
tions, and the committee is now hard
at work considering conditions and
I.oI.;x, Gov facfc uithout anv Dre.