The midland journal. (Rising Sun, Md.) 1885-1947, 1914-12-18
Farm Credit.

Farm Credit.
The thing most Eeeded by agriculture
in the United States is a system which
will enable the agriculturists Of the ma
tion toSobtain money and credit for pro-
ductive purposes.
1t was the pinch Of extreme poverty
that forced upon France, Germany. Bel
GUM, Italy aud other European nations
the adoption of their strong and success
full rural credit systems.
These nations were suffering from hur-
ger in times of peace even more than
they are suffering now in time of war
Their land was nnproductive and their
profit-making resources were failing To
produce sufficient to purchase food sup
plies from other more fortunate nations.
Secretary of Agriculture Houston's
report shows that this country is headed
straight for such conditions as obtained
formerly in most of The European ma
tious. He sees the direction in which
the country is tending, but is unable to
offer practical suggestion to check this
tendency.
The Secretary of Agriculture says that
the problem to be solved is how TO in
crease the production per acre. This
production is far below the average of all
European nations. In this connection
he discusses better modes of farming,
greater diversity of crops, scientific soil
analysis and the use of fertile RS to sup
ply those necessities of plant life of
which the soil has been robbed BY the
inferior methods of the last fifty years.
But of the question of credit, the one
necessity, without which, it is virtually
impossible to increase farm production
IN the United States, the secretary of ag-
ricnlture has nothing to saysexcept that q
land mortgage bank system will give the
farmer everything be can possibly need.
The best agricultural credit system in
the world Is that of France. The banks
of this system would no more think Of
lending money on land mortgage than
the bank of France would think of dis
counting an nnindorsed note for an un-
known individual.
They lend money for productive pur.
poses only, and they care not whether
the producer owns the land he cnltivates
or whether it is mortgaged or free from
membranes.
The agriculture credit banks Nh3ve
placed the farmers of France upon the
levelsof the merchants and other bust
ness men.
! They receive credit upon the assurances
that the credit will be used solely for pro-
dnctive purposes and upou their produc.
tive capacities. If French farmer wants
to buy farm implements or cows or
horses or anything else needed to make
his farm productive and to increase the
food supply of the French people, the
banks provide him with the money.
Such personal credit system is the
great need of agriculture in the United
States. system which will enable even
tenant farmers to obtain upon reasonable
rates the equipment needed for increased
farm production.
Instead Of this the secretary urges only
system of land mortgage banks. A
land mortgage bank system is a matter
Of importance, but in the United States
it's operations for many years would be
restricted to the refunding of existing
mortgages. II would not produce any
additional money for production for
many years.
The scheme Of land mortgage banks,
however, is one that is generally ap-
proved by the bankers, who, as class,
are opposed to system of personal
credit for the farmer.
The solution of the food supply prob.
lem lies in the establishment of proper
and effective rural credit system, system
which will be as productive of good in
this country as the credit systems OF
France and Germany have been in those
nations. This system wonld not be fol
the benefit of the farmers alone, but for
the benefit of the entire nation.-Angu.
McSween in North American.
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