Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1915-08-13

mat 1t Is impossible for settlers ON
newly irrigated lands to pay for the
lands within the time which was
liked IN the original irrigation act.
mat time has now been extended to
~ years, and it is being more and
more realized that it might profit
ably be extended to 40 years even.
with exemption from payment during
the tlrst few years of settlement. with
such amortization arrangem ents
thereafter as would gradually retire
the entire loan. Many movements
and some legislation in the direction
OF the creation of irrigation districts
recognize this essential principle.
In addition to those considera-
lions, which are applicable to the
newer lands, particularly In the west,
which have been less readily assimil-
ated, there are large areas In the
earlier settled portions of the coun-
Try, In states which once were more
or less fertile, conspicuous examples
OF which are found around Washing
ton City, in Maryland and Virginia,
the same thing being true in many
sections of the country, where lands
are worn out from extrayagant and
lmproVident methods of farming, or
economic and social disaster brought
on by war. or otherwise have been
neglected. Many of these lands are
capable of being restored to fully as
great productivity as they originally
had, thus affording comfortable
homes for additional millions of our
people. Many years, however, of
patience, thrift and industry will be
required to do this, and capital,
which the lands are utterly incapable
of repaying quickly and upon which
they can not be made to return high
rates of interest. Here. again. is the
same need, and 1t might be called a
necessity, for such rural credits as
are proposed In the movement re-
ferred to.
Through the organization of rural
credit districts upon u carefully de-
yised plan as to what property will
be subject to the rural credit loans
within it, a security will be created
which rests upon the very founda-
tons of credit and will be absolutely
impregnable. This is true, notwith-
standing its inability to repay the
capital quickly or to pay high rates
of interest. And the very fact that
it is so based upon property which
might be said to be at its very lowest
possible stage of depreciation con-
stitutes the absolute guarantee of
safety of the credit. In other words
the security can not possibly become
less valuable, but Is sure to increase
in value, and ultimately, within the
period of a longtime loan, may be-
come of very high value. Upon some
such fundamental consideration as
this Is based the fact that the rural
credit securities, even under some of
the European systems, sell in finan-
cial markets at a better price than
the national bonds OF their countries.
The same result can readily be OBJ
tanned here.
Here, however, 1t has become a
national question, and with the ma
tionalization, although still largely
under private control, of most of our
industries and transportation, this
matter of rural credits also must be
nationalized. The same elements of
economy and efficiency, which,
through the working of irresistible
economic laws, have produced the
consolidation of so many of our in
dustries, must be utilized in this
great public problem. The super
vision and guarantee of the national
government is needed in this matter
to the same extent as it is needed
in the reclamation of arid lands and
the improvement of waterways. Such
supervision and guarantee, resting
upon a foundation of carefully de-
vised district organization, with de-
tails and regulations reaching down
to the amount and character of land
to be offered as security by each bar
rover, will place the entire scheme
upon the highest plane of perma-
nence, general usefulness, and eff
ficiency. So much for the need of
rural credits.
Another phase of the problem
which | would briefly mention, which
is also a practical condition to be
dealt with In getting such a system
established, is the opposition to 1t
which comes from some of the bank
ing and loan interests of the country.
4 49, n