Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1915-08-13
RURAL CREDITS
(By Senator Miles Poindexterl

A vast body of public opinion has
been developed In favor of some
rural credits plan. This can not be
ignored, and from d practical stand
point, regardless of details, the agi-
tation for it will not cease until some
action is taken.
| only wish to speak of one or two
phases of the matter. but | think
they will throw light upon the whole
proposition. There has been a great
deal of confusion in the argument
on the subject through misapprehen-
sion of the nature of the credits de-
sired and of its effect upon ordinary
banking and investment agencies.
1t Is not proposed by the advocates
of rural credits that the government
should in any way indorse or aid or
binary farm or commercial loans.
What is intended to be supplied is a
character of credits which do not
now exist; namely. longtime, low
rate loan, with amortization feat
ures secured ultimately by the gen.
eral credit of a district or commun-
ity association operating under the
federal law and under the super
vision of some department of the
United States government. 1t is de-
sired to make available for invest
ment In such securities capital which
IL satisfied with low, but absolutely
secure, interest, and Is Indifferent
as to length of time in which the
principal shall be repaid, as long as
it is ultimately absolutely certain
and secure.
In general, the need of credits of
this kind for agricultural and gen.
eral rural industry has now become
evident because of the increase Of
our population and the almost COM
plete occupation of the great public
land areas. Heretofore, and almost
up to the present time, there were
available rich lands and various
forms of rich, natural resources,
which could be had from the govern
ment or from other proprietors at
low prices, and from which large and
quick returns of profit could be OBJ
tanned. Upon such resources those
who were engaged In development
could we'll afford to pay large rates
of interest and to repay the capital
within short periods OF time.
We have largely reached, however,
the end of most of such opportunities
so far as public lands are concerned,
or those which have been acquired
Ia large bodies from the public, such
az railroad land grants. Most that
is left is of a poorer quality, upon
which it would be utterly impossible
to secure loans at high rates OF In
terest and repay the capital in short
periods of time. With the rapid in
crease of our population, however
these lands must be utilized If the
standards of our country are to be
maintained. There must be inde-
pendent home, and under these cir
cumstances, thrift, industry and such
rural credits as are proposed VIII be
required In irrigating deserts, drain
ing swamps and clearing logged-off
lands. Illustrations are furnished OF
conditions demanding such financ-
ing. A study OF the financing OF the
British Indian irrigation develop
ment, which has profited by the ex-
perience of a great many years fur
nishes a working model In many re-
spects for such rural credits as are
proposed, with, of course many
notifications, as to sources from
which the capital is obtained etc.
The same thing is true as to re-
cent movements In our own lrrlga-
ton laws, both state and federal.