The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1914-01-23
MAKES STUDY OF
FARM CREDIT PLAN
Congressman E. 3. Bathrick Rein
PRODUCES Farmers Credit Bill With
New And Ingenious Features
GOVERNMENT TO BORROW FUNDS
Could Secure Low Interest on Own
Credit Money Would Then Be Re-
loaned To Farmers On Mortgage
From Congressman C. H. Tavenner.

4 p &. Z ~
From Congressman C. H. Tavenner
Washington, January 90 Con.
gresham q. r. Bathrick, Of Ohio,
who has been making an extended
and minute study of the farm credit
problem, has reintroduced his farm
ers' credit bill in the House with
some new and ingenious features in
corporated therein.
The principal underlying the Bath
rick theory of rural credit is that
the government should borrow money
using its own credit to secure low in
terest rates in the money markets of
the world. This money would be Dor
rOwed on bonds. The government
would then re-loan this money to far
mers On the security of their farm
mortgages. These mortgages would,
of course, be the security for the gov
eminent bonds to be issued. Under
such an arrangement Bathrick thinks
the government could let farmers
such an arrangement Batrick thinks
cent interest making a good profit in
addition which could be devoted to
the improvement of country roads.
-, The Management
The new features which Mr.. Bath
rick has added to his bill have to do
with the organization and manage
ment of such an institution as he
proposes. He would have an organi-
cation committee consisting of the
Secretary of Agriculture, the Post
master General, the Secretary of the
Treasury and two farmers appointed
.by the President After this board
has organized the farmers credit sys-
tenn, 1T shall continue thereafter only
in an advisory capacity. =
Farm Credit Bureau
The actual administration of the
system would be in the hands of a
new bureau Of the Department of
Agriculture, to be known as the Farm
Credit Bureau. The Commissioners OF
this Bureau would be the active head
of the farm credit system, having
complete charge of the Investigation
of all application for loans and for
all details of the business. The bill
gives the advisory board power to call
upon any government employees to
assist in operating the system. Thus,
Bathrick thinks, the postmasters of
the country, who are the closest gov
eminent employees to farmers could
be appraisers of farm values, inspec-
tors in the system, and custodian of
all the necessary blank forms to be
used by applicants for loans. r,
The bill would then encourage the
formation of Farmers Farm Credit
Associations throughout the country.
These could be profit-earning Or
CARNATIONS, being paid by the gov
eminent for services in appraising
and inspecting securities. Through
these associations loans would be
made to farmers. The commissions
upon mortgages would be the profits
of the organizations and farmers
would be encouraged to invest in
these associations. With this capital
at hand, the associations could make
short time loans to farmers in their
vicinity leaving the long term loans
to the government system.
In commenting upon his bill, Mr..
Bathrick said: "One theory of the bill
is that the profit Of making this class
of loans shall be wholly employed to
the advantage of all the people and
shall not be given into the hands OF
a very few of the people whose ex.
tortion has heretofore operated tc
create bad condition of agriculture
which we are now endeayoring te
cure
I