The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1915-12-29
OF HON. D. F. HOUS-
TON, SECRETARY OF AGRl-
CULTURE.
(Contiued from Page 81

Iscarv nor desirable. There has
en too much misconception as to
It is meant by rural credits anc
10 the practice and results abroad
bre has been so much talk abou'
Eeral legislation on rural credits
many uniformed people get
impression that it is proposed
tely to give farmers Fedora.
Bnev and to give it to them at
twer rates than economic condl'
ms could possibly justify. and ev'
Q give it to those who have nc
isis of security. In the minds OF
kany people the term rural credits
las become synonymous with gov
Irnmental financial aid. This no.
on is highly fallacious and is de-
imental to the working out OF any
htional scheme. 1t is likewise as
hmed that cooperation abroad re,
bits in cheap and easy credit, that
4, credit at interest far below the
ate prevailing in industrial circles
Ind extended upon character alone
here is no foundation for this view.
there is no cooperation in Europe
thich does not demand of borrowers
3. safe security as is exacted by
b ordinary institution, and interest,"
ties are never below those which
usiness securities justify, except
rare instances where a State has
bvanced public funds to be dlstrl-
ated in cheap loans. Where land
bortgage institutions or coopera-
We credit societies have become hrm
established abroad there has been
marked change in the rate of IN
crest at which farmers secure mon
i. but this results simply from the
lection of business principles and
Eom the advantages of reliable co,
beration. There is enough good
cooperation to assure its spread
b. There are enough possible ad-
ntages to demand the most sympa-
etic consideration of reasonable
ans by Federal and State authori-
Is and the enactment of proper
Rislation at the earliest possible
bment.
The fact that there has been
hate financial aid in Europe by no
Rans furnished a precedent or ar
{ment for such aid in the United
tates. Intervention abroad, Mi.
,errick correctly asserts, was mo-
ked by the old feudel notions and
the condition of serfdom or Sc
f-serfdom out of which the peas
It farmers had to be brought, and
t of which they have not been
tirely drawn. Paternallsm has
len the relation of the State to the
dividual abroad. The individual
Is not had the requisite initiative,
lid it is not complimentary to the
merican farmer to compare him
18th the average European peasant.
Fhe American farmers r better
len than the European peasantry.
furthermore, they are the most IN
ependent and self-reliant part OF
ne country's population: Special
pislation either for individuals or
&sses, would now be revolutionary
Id also would deaoen the spirit OF
lose who should rely upon it. 1t
bes not seem likely that they will
emand privileges and special favors
evised for conditions which have no
hrallel in this country and which
ould do them in the long run more
krm than good.
1t is likewise true that notwith-
kanding the wide prevalence OF
$pecial rural financial establishments
kbroad the great mass of farm
loans are made by institutions which
hre developed and controlled by
private initiative, instead of by those
Khich are endowed or guaranteed
the State. The total farm-mort-
(ge Indebtedness of Germany is
timated at two million. Of this
m $50 millions is lent by savings
INKS, $50 millions by cooperative
sociations who receive no financial
d from the State and whose obi
ations are not carried by the State,
hid ITO millions by joint stock
hanks. This leaves a hundred mil
lions, or five per cent only, placed
by institutions especially aided by
The State.
In this country, no matter what
legislation is. had at the hands OF
the State or Federal government
much of the lending on farm secu-
rites will be done by private es-
adjustments. The Department
through Investigations has ascer-
that $50 millions of dollars
are lent on farm mortgages in the
States by savings banks, trust
companies, and State and private
and that insurance companies
baye invested at least 600 millions in
rmortgage loans. That more
Ia be invested and at more favor
rates if reliable machinery were
kvised for inspecting and produc-
3 safe rural securities and the
dsiness were conducted under eff
Rent Governmental supervision I
have no doubt. Hence. the neces-
eity for legislation both in the field
of lsnd-mortgage banking and of To-
cal cooperative credit unions just as
loon as the Federal government and
States can determine the wise