Gilpin observer., 1913-07-24
WASHINGTON NEWS
By Edward Keating.

By Edward Keating
Uncle Sam rs begiEaing to under
alaId .ihais he does nc: know 1T aCl"
The old gentleman has heard SC
many sneers at the expense of ".y-
ncraIt foreigners, and he has Civ.
EN- ear to SO much c,ap!trap about
cheap foreign labor, that at times
he has felt THAI the unfortunsfes
who lived en- the other side of the
big mill pend, known as the Atlantic
ocean, were bcth enciaved and be-
mghted. He believed the world could
teach him little. But many recent
events have occurred to sadly dis
tu-b Cur Uncle's complacency, and
the truth is dawctng upon him that
While America taught the world the
principles of Democracy, the world
has far outstripped it's mentor I'm
practical application of those princi-
Pies. that while we have been indulg-
in much vain boasting concerning in
stitu&ions that were founded by our
fathers, these elder countries have
been boldly and ins:stentiy seeking
the path to Industrial freedom.
Aiding the
Farmer.
All of which brings US to a con-
slderat,cn of the activities of the
commission named by President VIZ
son to visit European countries for
the purpose of studying agricultural
cooperation and rural credits. You
remember some twenty years ago we
wasted good desl of cheap wit on
the Populists' scheme to have the
government lend money to the farmer
en- llis crops ard his land at a reas-
enable rate of interest. 1t was de-
nounced as chimerical, or something
like that, and the farmer continued
to pay the banker frcm to II per
cent for the little accommoda lions
he required. Since then the country
has adopted practically all the other
planks in the Populiss p,a-form-WI
son, Roosevelt and Bryan have led
the movement-and now we find that
the European countries have seized
on this Populst scheme for rural
credits. And-wonder of wonders.-
Kaiser Wilhelm's country has devea-
oped the idea more successfully than
any other nation. / have before me
a letter from one of the most distin-
guished members of the Presidents
commission, David Lubin. He has
been studying the land banks of Eu-
rope, and he says they have proven
of zinc alculable benefit to the farm
ers of Europe ard could be made
of equal benefit to the farmers of the
United States-if properly safeguard
ed by the state and National gov
ernments".
Lubin lays great emphasis on the
last proviso. European land banks
have been success s-ul soleiy because
the government has rigidiy super
vised them and kelt Them out Of tne
hands of exploiting SPECTATORS.
Prussia's
Plan.
Lubin is convinced that the most
adaptable plan and the one which
would permit of the widest applica-
ton in the United States is the
Laridschafen system of Prussia. The
plan of the Landschaft is very sim
pie. A landschaft is land bank,
and the laws of Prussia provide that
these banks may be organized un-
der government supervision. They
have limited and we'll defined func-
tions. They may accept mortgages
on land and issue bonds for the face
value of the securities. The bonds
are then sold by the borrower, on
the open market. Practically no
capital is required to establish a
landschaft. A body Of citizens in a
certain locality band together for the
purpose of organizing land bank.
They apply to the government for
a charter. After an investigation, it
Is granted and the government names
the President of the institution. He
Is an expert and holds office for
life. or during good behavior. The
organizers select the other members
Of the board of directors. who, by
virtue Of their offices, become quasi
public officials. Now the bank is
ready to do business. Adolph Schnei-
der appears. seeking a loan on his
land. The directors appraise his hold
ings and agree to accept mort
gage-perhaps so per cent Of the ap-
praised valuation. Schneider agrees,
the mortgage Is executed and Schnei-