New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1916-05-06
LOUISIANA NEEDS RURAL
CREDIT STANDPOINT.

Company was read before the 10,
isiana Press Association at Bato
Rouge this week and should il
tcrcst many of our readers
With the exception Of thos
international problems whlc
have arisen as a result Of the Eu
ropcan war. no one subject has il
recent years received as mucl
careful thought and study on tn
part Of the leaders in our govern
mental. financial and agricultural
affairs as the question Of rura
credits.
. On the other hand. in it's direct
relation to the farmer in need OF
financial assistance. no other sub
jet has been so generally misun-
dcrstood as this proposition OF
rural credits, even among those re-
spomsihlc for some Of the num-
crous bills introduced in Congress
and various State Legislatures,
dealing with the improvement Of
agricultural finances.
Many look upon the proposed
national legislation from the view
point Of one Of the constituents OF
an Alabama Congressman, who
received Il letter from small
farmer in his district. reading:
81 see by the county paper the
government is going into the rural
credit business Of lending money
TOYS farmers without security and
withou, maturity. II so, please
send me $500 to buy a Ford"
Therefore. before taking up di.
rcctly the question Of Louisiana S
needs from rural-crcdit stand
point. let us, as briefly rs possible,
look into the operations Of the
German Landschaft. to which ref
crcncc is so frequently made in
discussing the proposed American
rural-crcdit system aud I see, also.
how it may he applied to the
American farmers needs. Il
Established nearly $50 years
ago. as a result Of the efforts Of !
Frederick the Great to assist the 7
then impo, er;shcd landed nobility, 7
the landschafts have prospered |
end become a most important ad-
.unct to the agricultural system 7
Of Germany. +
The landschaft. however. serves G
only borrowers. 1t operates sole IL
" upon credit. has no capital c
stock. does not own or. receive
money for invcstcnt. does not is q
sue shares and never borrows in "
my circumstances. a
A landschaft is a territorial d. a
;ision established by law of a ii
State (not Of the German Empire r.
IS a national institution. and is IL
managed by an administration,
whose executive officers are APP al
'ointcd by the overnmcnt upon &C
omination Of resident land own ~
rs enrolled as members. The Al
vision NAV be subdivided and re-
csubdivided into lesser areas, of
ach with a local administration GO
nbordinated to the one Just above SO
!. ia
For example in Louisiana the
tate as q whole would be under or'
he supervision Of the main or IT
anization. There mfgt be DIFF m,
rent smaller organizations for tr,
'ch congressional district. and "a,
len local organizations for each =
irish. while, in the case Of thick n
settled communities. there
'uld also be still smaller organi- II
tions for the different wards in NJ
e parish.
Nobody joins the landschaft ex-
pit applicants for loans. and
embership automatically ceases
ION the repayment Of the loan.
lc borrowing member, after his
m has been approved and a.
st mortgage on farm land given
secure the obligation, receives
ON the landschaft its own de-
INJURIES Of the same amount and;
ferest rate as his loan. II
No money passes; the lending
not a cash transaction. but is
nply swapping Of papers. The
rrower must then sell the land
,aft debentures which he oh.
ms by this exchange wherever
can get the best price for them,
d. as a result Of more than .