Mansfield mirror. (Mansfield, Wright County, Mo.) 1908-1957, 1915-02-18

farmers is 1 per cent.
Land mortgage credits rank
higher than industrial credit.
Savings and trust funds are
freely invested in mortgages.
Land mortgages are always
repaid On the amortization plan,
COVE ring n period of 80 to 60
years.
: 1.-The rapid increase in tenant.
ry in the United Smtes is be
coming an alarming condition.
IL makes poor farm practice,
poor farm business and poor
farm community.
European credit is based on
the land mortgage bond. II is
not based on one mans farm,
but the farms of many. This
bond is bought and sold in the
market like government bonds
A most remarkable report on
agricultural credit las recently
been formulated and submitted
to the English government by "a
large commission of bankers,
farmers and merchants and men
from all walks in life, from which
| quote the following:
W. shall, in the course of our
report, give, our reasons for be-
lieving that much improvement
can be effected in rural credits
without in any way competing
with existing banks. The whole
subject of rural credits is one
which is at present occupying
public attention to a striking eX-
tent in every nation in the world.
1t is one Of worldwide import.
ance.
Closely connected with the
subject of rural credit and CAPT.
tai for the rural classes is the
important subject of the encour-
agement of thrift. These are in.
deed connected as supply and
demand. The chief function of
credit, whether in commerce, in
dustry or agriculture, is to ena.
bic the person making use of it
to obtain from others who are
willing to entrust their property
to his keeping without any in.
mediate return for capital for a
period mutually agreed upon.
There must be good reasons
for a comparative failure of agri.
culture.
An industry which is yearly
suffering from severe competition
should utilize more fully the
credit which is so readily availa
able for all other productive en-
terprises."
Prof. Fla. Fetter. Professor of
Economics of Princeton UniVers
ity, in writing to me said:
1T seems to me clear that the
great body of funds must be OBJ.
tanned as provided in your plan
by the sale of bonds to the in.
vestirg public. And the function
of the state should be somehow
to raise these above the credit of
a simple farm loan and to give
them a large market at a low
rate of intorest-practically ns
municipal and state bonds"
Let US examine the system of
farm loans in other nations and
see what conclusions we can
draw. Broadly speaking, they
may be divided into two classes:
1st. The German Landschaft.
If applied to Missouri it would
work out as follows: The state
would be divided into 20 districts
of, say, 6 counties each. Every
farmer in the district who
chooses to borrow would become
a member of the association and
would Immediately become liable
without limit for all loans made
in his entire district. The theory
is that the collective guarantee of
the combined land in the district
together with the unlimited,
combined guarantee of all the
members in the district produces
the strength of all the bonds is
sued against this district to sell
at a very low rate of interest.
We also find that these co ope.
rative institutions have received
at times state aid and also, to a
large degree, state management.
End. The system of direct
loans by the government to the
fo nm his real eState mort.