Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1914-08-07

quent intervals through young men
who in the nature of the case can
have little credit. 1t is this lack of
credit that forces them into wage
earning occupations. 1t is this lack
Of credit that prevents those who do
/ undertake farming from putting into
/ i. the capital needed to get the best
/ results. Every generation is going to
I find 1t more difficult to till the soil
: properly unless some workable meth
cd of financing the land can be
found.
Shortly before his death, while
! testifying before a congressional
committee, j. Pierpont Morgan start
/ led his countrymen by announcing
4 that he considered character to be
/ the chief security. He said he had
loaned as high as a million dollars to
a single man on this security alone.
/ When the various systems of Europ-
can cooperative banks or credit as
! sociations are analysed they are
found to be all based upon a few
| common features. namely, character,
! supervision, and helpfulness. Wal
ACE and Wilson state it thus:
These are found mainly among
the poorest of the poor, in sections
where it would be hard to find an in
diyidual who could be entitled TO
credit at any bank. They are simply
associations of farmers of the highest
! character--fOr they have no credit
except for integrity. They borrow
money at three per cent and loan it
OFT to themselves at about four per
cent for productive purposes only,
and subject to a supervision by
committee of the association The
two features that characterize these
credit associations are unlimited liza
bility and supervision. Each member
is liable for the debts of the assoCia-
ton; and a committee of the asso-
citation determines whether the pro-
posed borrower wishes to borrow for
productive purposes, sees to it that
he purchases wisely, and that he pro-
ceeds properly with the animal or
the thing purchased with the bor-
rowed money. For example if it Is
proposed to buy a COW, the committee
determines whether he needs COW,
then sees that he makes a good pur-
chase and then that he cares for e
cow properly"
1t is my opinion that II we are to
inanugurate a successful system of
farm credit, we should try to forget
the methods employed by credit asso-
Citations in Europe. Whnt we should
do Is to try to comprehend the prlnci-
pies employed and seek to adapt
them to American ideals, customs
and governmental methods.
What is wanted Is some method by
which young men who wish to be-
come farmers may offer evidence of
ability thrift and character. rhera
is wanted some guarantee that the
Money will be used for productive
purposes and sufficient supervision
to determine that the money will be
wisely expended.
What Is needed is some basis on
which educated, Woodworking, hon
est young men between the ages of
p and 80 may obtain a reasonable
capital with which to make q home
in the open country. What is nesied
is some method of replacing tie op~
Portunity which formerly existed
under the homestead act.
No young man can obtain employ
ment in the government service with
out passing a civil service examina.
ton. No person can teach in thu
public school without teachers GER
tificate. No physician or pharmacist
| may practice his profession unless he
shows certain technical knowledge
No man can occupy the pulpit with
out demonstrating his fitness.
Suppose young man could pass
an examination ia agriculture; sup
pose he could present evidence Of
practical farm experience: suppose
he had actually earned and saved a
given amount of money; suppose he
had a reputation for honesty and
good habits. why should not the state
lend him money on terms similar TO
those on which the state now keeps
SG,06o,000 on deposit in banks, or
why should rot the United States
of.n its postal deposits on terms SIM
iI'r to those or which it now loans 1t
TO saving banks2
Senator Fletcher, referring to
credit associations. in Moody's Maya
zine, says:
This is the first advantage
brought by such associations-cheap-
er interest rates. Each year the
farmer is required to pay, besides the