The Caucasian. (Clinton, N.C.) 188?-1913, 1913-05-15
A Plan for Cheap Farm Credits.

assisted these baaks. no, only by
saps-s zaoa hat also b. goa=.ar ea.-
. eminent funds a. a lo@ rate ot Ia
fsr,sa. the Gos. D.ue.r.cat results
have r@en secured Italy IS one of
tie countries &aere the gov.rstle
! does not assist the farmers. .4ta.-
~4ta cheap capita! or ~stA PROP
I r apervision. ant there tho iateres.
rA.e = twice a. high a. III Franc
our Postal Savings Bank system
OF THIS country provides fer loa
/ rate %! = Il pr cent on current de-
, poslrs, and also that each teposltor
can. Al an. ;ime. turn his open ac-
count into q permanent Investment
and receive the government Postal
| Savings Bank bonds Several million
| dollars worth OF these bonds have
already been issued 10 depositors III
| Postal Savings Banks Besides
| there are today, over $4,000. 600
on deposit in these Postal Savings
| Banas. in open accounts This euor-
nous sum would be at once. invest
! I'd upon the discretion Of each de
| positor TO the government. in bonds
| issued by Farm Loan Banks. which
| could afford to offer rate OF inter
| est from to Il per cent. and
! the fact that such deposits could be
| invested in such safe, high-class
bonds, would result in soon doubling
the deposits in Postal Savings Banks
4 few days since. Senator Hoke
Smith, OF Georgia, introduced a bill
| s. l55D TO amend the Postal Saw
ings Bank Law, by increasing the
rate OF interest 10 be paid depositors
from , II 10 per cent per annum.
| The purpose OF this proposed in
creased rate OF interest is TO induce
a large number OF people to deposit
their savings in Postal Savings
| Banks. If the suggestion which /
have just made should be adopted,
then such a bill will not be neces-
sary 10 increase the deposits in Pos
tai Savings Banks. for the bonds Of
Farm Loan Credit Banks will be as
secure as government bonds, and at
the higher rate of interest would
stimulate such deposits and absorb
them as fast as made.
At present, the accumulations in
Postal Savings Banks are deposited
| by the government IN neighbOring
National Banks, to be loaned by
them at per cent, or even a higher
rate of interest; but no farmer is
able to borrow cent of this money,
on his land, even at such a high rate.
Now, why should not this money,
on Which the governments pays only
, IL per cent interest, be loaned
to the farmers at a slightly increased
rate, just enough to cover the cost
Of supervision of the transaction?
In short, the Postal Savings Bank
system can be used to make the pro-
posed Farm Credit Banks a certain
nationwide success, by furnishing
the amount of cheap capital neces-
sary to meet all demands. This
would result in making country life
more comfortable and attractive.
The stability of our republic de-
mands that the flow of high-class
|
towns and cities should be checked.
| suggest that we should adopt the
Reiffelssen System of Germany and
Austria, or the Credit Foncier Sys-
tenn of France, or the Sub-Treasury
plan of the Farmers Alliance.
The Farmers Alliance put for
ward the Sub-Treasury plan more
|
posed method at a low rate Of in
terest to the farmer. That was moth
ing more or less than a modification
of the most successful European sys-
TENS, where farm products. imple-
ments, etc, are used as the basis Of
loans. The Sub-Treasury plan has
been adopted successfully in several
-, places in our country, but it will
spread slowly and never be put into
general practice, nor reach it's great
est usefulness until the system is es-
tablished under government super.
vision and that is what the Farmers
Alliance urged Congress to do.
The Farmers Alliance also urged
the Establishment Of Postal Savings
: Banks. These banks now being an
established success, furnish abun-
= dant and cheap capital, the one thing
. necessary to establish a great nation
al system of cheap long time farm
credits which will result in an in
finite benefit to the farmers and al
infinite aid to stability of the re-
public. No subject calls so loudly
, for the highest craftsmanship and
deepest patriotism.