The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-04-27
WILLINVESTIGATERURAL
BANK SYSTEM OF EUROPE
Special Commission Representing National Government and
the State Sails for Naples Important MissionWl
Endeavor to Devise Banking System for American
Farmers--Report to be Made to Congress

systems Of European countries. Re-
sides the federal commissioners. there
are delegates representing bout three
fourths Of the States Of the Union who
Will make q report to q committee OF
nine governors appointed at the last
conference Of the state executives. In
this way official recommendations will
he placed before congress and tina
State legislatures urging n considers
ttoa ef the credit requirements Of th@
farmers both as means of assisting
the farmers and of relieving the con-
sumers of the country from the bur-
den of the high cost Of living.
The work Of the commission IS close
If connected with the efforts Of the
banking and commercial interests to
secure currency reform. The princf-
pal claim Of those seeking currency
reform is that under the present bank
ing system which permits banks TO re-
deposit their funds with other banks.
who in turn deposit them in Chicago
or New York. the tendency is to col
fect the surplus Of the nations funds
In IRE big speculative centers where
they stimulate stock gambling The
currency reformers want permission
extended the banks 70 lend more free
ly and with better returns 70 those en-
gagged In legitimate commerce and
manufacturing work. The American
Commission ON Agricultural Co-opera~
tion similarly wants a supplementary
banking system built up which will be
controlled hy the farmers and which
VIII divert large portion of the saw
ings Of rural communities to the de-
vei0pment of the farms. IT Ia claim
ed that in Germany such a system has
been able TO supply as high as s per
cent Of all the money required by the
German farmers for their operating
expenses from such deposits. Similar
systems are In operation in nearly
every country Of Europe. 1t is To
study the operation Of these systems
that the commission is visiting those
countries
Look Into Mortgage Banks.
The second attempt Of the commits
sion viii be to secure the establish
ment OF Il mortgage banking system
in the United States. Such system
in Germany has brought over $4,000
coo. 600 to the German landowners for
the development and Improvement Of
their land. In France the mortgage
bonds Of Credit Foncier, which are
only tho farmers mortgages under "a
different form, sell at lower interest
rates than even first-class industrial
bonds. 1t is declared that If a mort
gage banking system could be estab~
lished in the United States billions Of
dollars Of additional money could be
secured for the farmers at much lower
rates and on better terms. and that
with the great development In Ameri-
can farms which they money would
make possible the problem of food
production In the United States which
is rapidly becoming worse, would be
solved forever.
The federal commissioners appoint
cd by the president are Senator Dun
can L. Fletcher. lawyer farmer. and
president Of the Southern Commercial
congress; Senator Thomas r. Gore, of
Oklahoma, chairman If the senate
committee on Agriculture; Represen-
tative Moss, OF Indiana, who was "A
farmer before he entered congress.
and is now chairman Of the house
committee on expenditures in the
department Of aCriculture; Colonel
Harvie Jordan, former president of
he Farmers union: Kenyon l.. But
terrified. a member Of President Roose-
velt's Country Life commission and
president of Amherst college; John
Lee Coulter the governments expert
on agricultural statistics. and Or, Clar
ence T, Owens managing director Of
the Southern Commercial congress.
Many Prominent Delegates.
The State delegates include farm
ers bankers lawyers and economists.
Vincent Aston was appointed a dele
gate from New York by Governor
sulzer and the prime minister of Sas-
katchewan heads d delegation of Ca
nadians representing four provinces Of
the Dominion. The commission re-
turns from Europe in August and will
then prepare It's report TO congress and