East Oregonian : E.O. (Pendleton, OR) 1888-current, 1914-12-11
NATIONAL FORESTS SHOULD
BE HANDLED so AS TO YIELD
REVENUE WITHOUT DELAY

the condition OF serfdOm or senlseri'
dom In which were some OF the Eu
ropean peoples, for whom government
aid was extended in some form oil
other during the last century.
"It Is the judgment OF the best
students OF economic conditions here
that there is needed to supplement ex'
istlng agencies proper land-mort'
gage banking system operating
through private funds. just az other
banking institutions operate, and this
Judgment is shared by the leaders OF
economic thought abroad"
The secretary then points out that
the federal reserve act makes paper
arising out OF agricultural transactions
eligible for discount under longer
maturing period than other forms oi
paper and also permits national
banks not situated in central reserve
cities to lend on improved and unem-
bered farm lands for any period up to
five years 'The federal act" con-
ciudes the secretary, $50 far from
discriminating against the farming
classes. distinctly bears them in mind
and while not discriminating in favor
OF them. takes Just and particular
knowledge OF their requirements"
The estimated total OF farm mort
cages held by savings banks, trust
companies, and state and private
banks In the United States exceeds
$3.50. .OOO. 900. This fund. however, Is
very unevenly supplied. Iowa banks
alone furnish nearly Si00,0OO.OOO'
Information secured from Insurance
companies shows that more than
$500. OOO. 900 OF their funds are invest
ed in farm mortgage loans. the re-
mort then discusses the various meas
ures nroposed for relief, two OF the
more important OF which provide
for land-mortgages to the extent Oh
20 nar cent OF the real value OF the
farms. The report continues with tnis
discussion OF cooperative credit asso'
Citations:
Coopcrativc Credit Associations
"T,he students OF rural credit reeog-
rize the deslrability Of another piece
~ legislation which may probably De
had at the hands OF the several states
or ~ the federal government nancy
iag,slation authorizing and encourag-
inc local personal cooperative creu''
associotIons Some states have al
ready taken steps in this dlreS',on
ard others are contemplating takns
thom such associations as these
,,,,I, nerhaps render their largest ser
,,ice in the section OF the couh'ry
,,'hore there are many small farmers
whose Individual resources may not oo
sufficient TO enable them TO secuI.
the requisite credit. Their "reess
f,eld for operation would prooaoiy
~ tha south. characteristics OF such
associations OF small farmers are
TTrI,nited liability OF members. the
nledging OF the faith OF each to the
other and OF the whole TO the lender:
the use OF funds for clearly defineu
productive purposes; and the super
vision by the association OF the use
made OF the funds II has been OBJ
jected that the feature OF unlimited
liability will prevent the organization
of such associations in this country
but in certain sections OF the nation
the liability OF small farmers is al
ready unlimited. and this could not
be said to be an insurmountable OBJ
stacle.
I'm reference to such proposed as.
soclations. as well as to land-mort.
gage banks, II is OF the utmost i'm
pOrtance that attention be centered
on the use which may be made OF
borrowed money. II is OF high i'm
portance that there should be guar
antics of the use Of funds secured for
productive purposes on the farms
covered by mortgages or other obli-
cations; otherwise the field for spec
ulation will be opened and more harm
may result than good"
on the subject Of good roads the
report says in part:
"The problem OF good roads. so far
as the federal government Is con-
cerned. is how TO inject its assistance
into the situation primarily so as TO
secure efficient expenditure. The
people OF the nation are intensely in
iersted in this problem. and pressure
will continue for action by the fed
eral government. The matter Is OF !
sufficient Importance TO Justify again |
IN attempt to indicate the wise course
of action in case the federal govern
nent is further to expand It's activi-
les and lend direct support. II d.
-ect federal aid is to be expended, II
Ihould be done only under such con-
litions as will guarantee a dollars
'esults for every dollar OF expenditure.
Ind, as has been stated. the empha-
lis should be placed on the commu-
lity road, on the necessity OF improve
nent in an economical manner OF
he dirt roads OF the country, partlc-
ilarly through the cheaper forms OF
such as sand clay. grav-
i and earth. Legislation should pro-
tide for cooperation between the
ederal government and the states,
md that the state through an expert
highway commission should be the
owest unit with which the federal
machinery should deal II the feder-
u government recognizes any other
init than the state highway commits
ion, II will complicate the situation
n those states where satisfactory de-
have taken place and II
vii retary movements in the right
Erection in other communities"
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uHoIoIIo re. cI,ov. r,ouuao