The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-08-26
RURAL CREDITS.
Message From the American
Commission to Europe
Read Before the Conference of
Governors.

Colorado Springs, Col, aug 20
Farmers of the United States speedily
must come to an understanding of the
value of organization and union OF
forces in producing and SELLING farm
crops and in the financing of agr1cul-
turaI operations if this country is to
keep pace with the development or Eu-
ropean nations.
This was the message from the
American Commission on Rural Cred
its. delivered to the Conference of Gov
errors here today in a report by SEN
ator Duncan L. Fletcher of Florida,
chairman of the commission.
The report was presented to the con-
ference by Gordon Jones, of Denver, IN
the absence of Senator Fletcher, its
chairman.
The first general report upon the eX-
tensive European investigation made
by the American commission, under
joint authority of congress. the govern
ments of % states and the southern
Commercial congress, was laid before
the governors with recommendations
for increased activity by the states in
the extension of rural credits and CO.
operative farming enterprises
''The commission is deeply i'm
pressed with the vital Importance OF
a thoroughly organized and united
rural population" said Senator Fietch-
er, in an authorized statement from
the commission which he included in
his report.
Europe Offers Lesson.
I'm this respect the countries OF
Europe offer a lesson which may not
long be disregarded in America with
out serious consequences. The agri-
cultural interests of most European
countries visited by the commission
are organized along one or more of
the following lines: Credit, produc-
ton, distribution and social organiza-
ton for the betterment of country
life
Definite recommendations by the
commission as the result of its extern
Sive investigation of European farm
ing credit systems. will not be formu-
lated until certain committees have
gone through mass of data and pre-
pared it for consideration of the en-
tire commission.
Senator Fletcher made it clear. how
ever. that emphatic recommendations
would be made for a system of rural
banking through which farmers could
secure better loans. and through which
they could finance their own co-opera-
tive producing, buying and selling or
ganization
Federal Legislation Promised.
President Wilson's recent statement
that "a distinct system of banking
must be provided for if rural credits
are to be successfully and adequately
supplied was referred to by Senator
leIGneT dS Il PROMISE IIdL 1eueTal reg
islation will soon be taken up. with a
view to relieving the financial handi-
caps under which American farming is
carried on.
These European credit systems he
added, ARE of two kinds, those provid-
ing personal, short time credit for OPP
Grating purposes, and those providing
long time mortgage credit for works of
permanent development and purchase"
The more highly developed short
time credit systems, said the report,
bring all the farmers together in an
organization where they assume per-
Sonal liability for the society's debts.
The society pays interest on deposits
and loans to its members at or s
per cent; and gives to each band of
farmers the money with which it can
finance cooperative selling, buying
and producing organizations.
The other kind of credit is found
in mortgag e-bond societies which hold
long time mortgages bearing moder-
ate interest and automatically dis
charging part of their principle each