The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-04-17
URGE n CREDITS.
Senator Owen Outlines system OF Gov
ycrnment Aid.

washington, April 12.-Senator
Robert l.. owen. chairman OF the sem
ate committee on banking and cur
rency and a member OF the special ru-
rNi credits committee. announced to-
day that he intends to advocate gov
eminent aid in the rural credit legis-
lation which will come up in the next
congress. Senator owen stated that
he has already worked out n system
OF government aid under which he be-
lieves h federal treasury will be
amply protected from abuses. He ex-
pressed the opinion hat the principle
Is economically and politically sound.
The application OF government cred
IL or aid. he declared, would be
fraught with danger unless sufficient
safeguards we're afforded to insure
the stability of the systern and pre-
vent abuses.
There Is no doubt that a system
can be evolved without doing violence
TO our principles OF government or
placing the government i'm the least
jeopardy" said Senator owen. Per
n credit. which all the bills thus
far proposed have not touched upon,
will be one OF the bills expect to
push I'm the next congress. That is a
vital portion OF the system. and. in or
der to make II as effective as IL should
be. Il must be handled apart from inc
land credit idea"
Senator Owens favors the ~orFaniza-
ton OF cooperative groups OF not less
than 20 persons who are to be re-
sponsible. each for the other, TO a lin
tied extent OF personal rural credit, so
that every person In the group will be
responsible for every loan. The amount
to be loaned to individuals must be
limited. The loan must be for pro-
ductiye purposes. and only in some
enterprises which will give security
to the group for the investment. The
loans mould be on short time. COM
parativeiy. such as for buying swine to
be fattened for market or the pur-
chase OF other stock for similar pur-
poses. Continuing. Mr.. owen said:
The individual who wants a loan
should make his draft on the author
ICED officer OF the association who
should accept II. the acceptance TO be
forwarded to a federal institution,
maintained in the state for this pur-
pose. where IL would be discounted at
n low rate.
Provision should be made that
when the paying time arrived the
notes were paid. and not put in form
Of an investment. This does not mean
that the person making tho loan-for
the purchase OF stock. as an illustra-
tion-could not make another loan for
n short period to complete the trans
action OF his part. II would mean that
the notes would be short-tlme loans
and not investment notes. BY short
time. l do not mean 90 days. but run
ming from n To two years. and down
To as brief n time as 80 days. They
should be made for sllos. which will
pay for themselves very rapidly; for
%incubators fer chickens. for foodstuffs
for cattle. or for cattle going to the
pens for feeding.
at Is said that no 90 Americans
can be found who would underwrito
the debts OF each other. In my judg-
ment this Is not true. The underwrit-
tng OF these debts for products for
limited sums and short maturity,
based upon character and industry. will
bind men together who are worthy
and give new stabilizlng force To SO.
ciety. / believe I'm limited government
aid sufficiently TO put the system on
It's feet, To give II dignity of govern,
mcnt patronage as well as govern.
ment initiative In organizing such in.
stitutions Using the government,
credit I'm a limited manne for thcs,
institutions would not cost the govern
ment anything. II would stimulate IN
n broad way the productive cncrUic.
OF the American people applied 10 ia,
most responsible of all natural re
sources-agriculture and rural nus
bandry."