New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-24
Joint Congressional Com
mission Agrees on CON-
promise, Says Fletcher.
MAIN DIFFERENCE
ON GOVERNMENT AID
Wilson Endorses Land Banks, but
Is Opposed to Direct Control
by u. S. Officials.
From m. rs1eyre Bursau.

Washington, Nov. pa compromise
on a rural credits system has vir-
tuslly been reached by the joint COM
mission Of both houses of Congress ap-
pointed just before adjournment, and
efforts will be made TO force through
what may be termed the compromise
bill at the approaching session of Con-
gress.
The two wings, differing radically on
the question Of government aid, are
being brought together in favor OF a
single proposition. Senator Fletcher, of
Florida, states to-day. The measure
will not be treated in any sense as
party one. he adds, as both Democrats
and Republicans shared in the pre-
liminary work. :
At present the compromise plan is
Tor banks with capital stock OF so0o,oVV
each. the number, however, being stiii
unsettled. Under the plan Of the Ma,
tional Rural Credits Commission, OF
which Senator Fletcher is chairman, IL
was proposed that there should be one
of these banks in each state. Under
the Hollis-Bulkley plan, called after
Senator Hollis and Representative
Buckley, it was proposed that there
should be one bank in each Federal Ne
serve district.
To Be Separate System.
In the compromise plan the proposed
system is not connected in any way
- "a
has separate board with supervisory
powers.
"The main purpose of the system, OF
course" said Senator Fletcher, sis TO
mobilize farm resources just as the
Federal Reserve system mobilizes the
commercial resources OF the country
But. once installed, the rural credit
banks should afford an attractive neld
for the investing public with the long
time bonds they would issue at sum-
cient interest
at is by making those longtime
bonds attractive to investors that the
proposed system would get the neces-
sary funds for It's operations. In Ger
many the plan works excellently. In
many places these bonds for 8 and 3 a
DER cent sell better than the imperial
bonds. These bonds would be triply
secured by twice their value in land
by the original bank and by the dis
trict bank"
The difference which proved irrecon-
cilable last year was the extent OF
government aid in establishing the
credit banks. Tho National Rural
Credits Commission plan provided for
no financial assistance from the gov
eminent, merely permitting farmers in
each state to organize land banks FOR
making long mortgage loans on farm
lands.
Like Building Association Loans.
On these loans the farmers would
have ~ pay not only the interest each
year, or such shorter term as might be
agreed on. but a small part Of the
principal, so that the entire loan would
be paid off, after the manner OF q
building association loan, in given
number OF years.
On the other hand, the Hollis-Bulk-
ley plan proposed that the government
should own the stock of the banks,
which should be associated with the
Federal Reserve system, and that the
government should stabilize the bonds
sold.
The President has assured Senator
Fletcher OF his sympathy with the ad-
vocates OF credits legislation. Owing
to the belief that the President may
conflne himself 70 few major subjects
in his first message to Congress, Sena-
tor Fletcher said he hoped for mes
sage on the subject of rural credits a
little later. The President has ex-
pressed his disapproval of direct gov
eminent aid, but Senator Fletcher be
lieves that he might not disapprove Of
the proposal for the government to
subscribe TO part of the stock Of rural
banks.