The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-03-27
URGES RURAL CREDITS.
w. u. G.. Harding Deems Issue of
Pressing Importance.


Pressing Importance.
Washington, March cav. P. G.
Harding, a member of the Federal
Reserve Board and formerly a lead
ing Southern banker, today outlined
his views on a rural credit system to
be presented to the Southern Confer
ence for Education and Industry at
Chattanooga, Tenn, next month.
The details of Mr.. Harding's idea
of a solution of this problem de-
rives added importance from the fact
that some of the Congressional COM
missioners are quoted as believing
there is no great pressing demand for
a rural credit system"
Mr. Harding believes the question
IS Of pressing Importance in building
up rural communities. bat he thinks
tic system sluuld he i~naugurated H.
The individual state. and IN outlining
his views. Mr.. Harding speaks from
a thorough aetical-lSnowledge of
banking as we'll as ar intimate ac-
quaintance with industrial problems
in the South.
Mr.. Harding suggests that each
State should charter and supervise it's
own land mortgage bank, require it's
official tax collectors to make collec-
tions and induce local banks to act as
agents in their respective commune
ties. The only fees paid would be
those to appraisers and TO attorneys
for examining titles to property.
Discussing the subject. Mr.. Harding
said:
A adequate system of rural C.ed-
its is ~inseparably bound up in any
solution Of the problems Of farm
tenancy, crop Investigation and in
adequate school and church facilities.
which the Southern Industrial Coun-
Gil is to discuss"
Il would have the State charter
the land-mortgage bank, whose stock
~ iloIIlttNIDlt. nat feature
would constitute it's first advantage.
Alter paying 6 per cent. dividend and
carrying a certain portion to surplus.
the balance of earnings should revert
TO the State. 1t should not be allow
ed to receive deposits, but should con-
fine it's business to farm loans exclu-
sively.
Ihe citizens of each county Of the
State should be permitted to sub
scribe Tor an amount of stock to be
prorated to hat county in proportion
TO its population If any county did
not absorb all it's share, the surplus
might so to another county.
Loans would bc prorated among
the various counties i'm PROPORTION 70
De placed on the loan which could be
the value of the farm lands of that
county as compared to the sum total
for the entire state. A limit should
be made 10 any one person, and loans
should run from 20 to 80 a as a
maximum to permit the amortization
at Il low rate or the retirement at the
end of that time Of the original loan
by the payment of an annual sum
only slightly above commercial inter
rates on short-time loans.
Il am convinced hat under State
supervision a practical system can be
up which can be operated eco
nomically and make possible advances
improved farm property at reason
able rates. upon easy terms Of pay
Care should he exercised that
'oanS made he for legitimate develop
mont purposes n not for land spCcu-
but details like this are for the
consideration of state legislatures.
'Thcrc is nothing in the idea o.
STATE land banks as above outlined to
pniiict with action by the national
government which might be helpful
IN marketing II bond issue of the
state institutions. |