The Churchill county standard. (Fallon, Nev.) 1908-1920, 1913-09-17
SYSTEMS OF RURAL CREDIT
European Agricultural Districts
Are Forging Ahead Under
Scientific Treatment.

The following is of interest to the
farmers of this valley, who have al
ready been made to feel the keen
Importance of banding themselves to-
gether that individual problems, fl
nancial and otherwise may be met
more promptly. The following is
the text of report read at the re-
cent meeting of the governors in Col
orado Springs, Colo.
Farmers of the United States must
speedily come to an understanding of
the organization and union of forces
in producing and selling farm crops
and in the financing of agricultural
operations in this country to keep
pace with the development of Euro
pean nations, was the message from
the American commission on rural
credit, in report given by Senator
Duncan Fletcher of Florida, read be-
fore the conference by Gordon James
of Denver.
This was the first general report
on the extensive investigation made
in Europe by the American commits
sion, under joint authority of con-
gress, the governments of twenty
nine states and the southern COM
mercial congress, with view to ex-
tension of rural credits and coop
srative farming enterprises.
THE commission is deeply i'm
pressed with the vital Importance of
2 thoroughly organized ard united
rural population" read the state
ment from the commission
Lesson From Europe.
In this respect the countries of
Europe offer a lesSon that may not
long be disregarded in America with
out serious consequences. The ag-
ricultural 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 organi-
cation for the bettarment of country
| life"
Definite recommendation by the
commission as a result of its extern
5ive investigation of European farm
ing credit systems will not be formu-
lated until certain communities have
sone through the mass of data and
prepared it for consideration of the
entire commission.
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 it's members at or 6
per cent and gives to each band of
farmers the money with which it can
finance cooperative selling, buying
and producing organizations.
Mortgage Bonds Explained.
The other kind of credit is formed
in mortgage bond societies, which
hold long time mortgages bearing a
moderate interest and automatically
discharging part of their principal
each year.
This form of mortgage credit
would mean more money for machin-
cry, more for purchasing land and
for developing poor land. 1t means
fewer tenants and more owners"
continues the report.
''The organization for the provi-
sion of personal credit faeilitiets are
as highly developed as are the sys-
tens of commercial credit and bank
ing. The prevailing rate of interest
paid by farmers for short time loans
is from to 5 " per cent The terms
offered European farmers are gen.
eally better designed to meet the Pc
culiar requirements of agriculturists
than are the terms obtainable today
by the American farmers.
These short time credit societies
furnish safe, cheap and elastic credit
to their members by reason of their
contol by farmers, and are organiza-
tions exclusively in the interest OF
the farmers, who operate them at a
nominal cost and without seeking
dividend profit to such societies, .
said the statement
1T is the opinion of many leaders
of this movement in Europe that the
question of rural credit ought not to
be divorced from cooperation for
business purposes and the general or.
ganization of community life in rural
districts. The studies of the commits.
sion emphasize the necessity of de-
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