davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
NOW CANADIAN FARMER
IS SAVED FROM USURY
And Under the New Plans for Better Rural Credits in Prairie
Provinces Fashioned After Our Law, Funds Are
Likely To Be Sought in the United States

subsequently incurred for the pur-
poses mentioned in this section, the
board at all times first to approve
such expenditure.
To finance the scheme in MANI
toba, the government proposes TO
borrow from the banks at 5 per cent
the sum of S1,000,000. The govern
ment will also subscribe for SlOO,-
900 worth of stock of the rural
credits association. When Sl,0OO,-
600 has been loaned on farm mort
cages, 3 per cent of that amount, or
$4,000, will have been subscribed IN
stock by the borrowers. Money for
additional mortgage leans will be
raised by the sale of 5 per cent ten
year bonds, which may be issued to
the extent of S9,000,000. Principal
and interest will be guaranteed by
the provincial government, and the
bonds will be exempt from local tax
alton. Each of the three provinces
will organize its rural credits asso-
citation independently of the other
two, but there will be uniformity in
organization and administration.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
Industry Must
Be Organized

To expand the railway net of Rus
STA will mean an immediate and enor-
nous expansion of the steel industry,
as every mile of road requires APP
proximately 200 tons of steel, and
with the development Of the long
haul and heavy traffic Russia will be
forced to the large unit of transpor-
tation adopted in this country, which,
again, will require relaying existing
roads with heavier rails and
strengthening the right Of way
structures. The country is we'll sup
piled with coal, and has iron ore in
very great abundance. The produc-
ton of both at the present time is by
unrelated and comparatively small
units. To organize the industry
along comprehensive lines and link
together the raw materials by special
transportation facilities affords an
opportunity to American capital to
leenact the last twenty years of its
history in the United States.
Previous to the war the great bulk
of manufactured products was fur
nished to Russia by Germany. The
Russian is proverbially good natured,
and it cannot be expected that the
hatred of Germany and Germans will
long survive the war, but the demon
stration Of the economic folly Of de-
pending upon foreign nation for it.
manufactured goods, forced home by
the interruption of commercial rela-
tons, will never be forgotten. II /.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21

Zealand and the Australian states.
1t closely follows the provisions OF
the New Zealand act, and the COM
mission purposes to defray the eS-
penses Of administering the act by
charging, on all loans to farmers,
interest at the rate of / per cent
more than the actual cost to 1t OF
capital raised by the sale OF securi-
ties guaranteed by the province.
Already we'll over 1000 applica-
tons for loans, aggregating some
thing like S2,5OO,OOO, have been re-
ceived. First consideration is given
to applications where the money is
to be used for purposes which viii
tend definitely TO increase produc-
ton, rather than to those which
have in view the paying off of ex-
listing mortgages.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
Cost of Growing Potatoes

To determine the cost oil siV''
an acre Of potatoes a survey was 90 90,
among successful farmers IN S's'', :,
and oswego counties, New for', :
Steuben County the cost varied ~ ~,
s36.e5 70 S4s.73 last year. One grO"s
in Oswsgo County found his eo'' y "A
s75.O5 per acre. His average ''s -,
was 2ss bushels, which left .
profit Of s69.60 per acre. Large ' :.
tions we're found between growers y "
the amount Of seed used, cost Of pis
pairing and planting, amount OIL
tilizer applied and the yields thar VIZ
obtained.
In oswego County more fer'ih'
were used per acre. In Steuben Oos'
ty from 500 TO 1900 pounds per 'a'
was used.-Rursl Life.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
Other Important
Differences

The third important class Of DIFF.
ferences between a domestic invest.
ment and a foreign one we have
called (for want of a better name)
social differences. These are Of a
miscellaneous character, and it will
be sufficient merely to mention them.
There is the difference Of Language,
which is often an impeachment to the
ready flow of capital from the
cheaper to the dearer market,
through preventing a thorough
knowledge of foreign conditions and
leading to annoying misunderstood
ings in the negotiation Of capital con-
tracts and the conduct of current
business. Then there are unfamiliar
systems of government, of juris.
prudence and of taxation; and there
are business, political and social Gus
toms which are difficult for the for.
eigner to Understandable Of which
serve as barriers TO keep capital
from flowing into foreign fields.
1t is only when the attractiveness
of large immediate or future returns
becomes great enough to surmOunt
these barriers in addition to over
coming the natural conservatism Of
capitalists who prefer to see where
their money is working that capital
moves out of the homeland for per
manent investment abroad.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
Handicap OF
the Calendar

Considerable advantage has been
taken of this legislation, and the
situation to some extent has been
relieved thereby. But the banking
institutions insist-and legitlmately
that it is contrary to the princi-
pies of sound banking for them to
bind themselves, singly or collective
ly, to carry loans for a period of
two or three years. They are will
ing to renew farmers notes from
time TO time, "on the merits of each
case and as conditions may permit"
but are reluctant TO give any gen
eral undertaking to discount such
notes drawn at a longer usance than
three or four months. They contend
that as commercial banking institu-
tons it is necessary that they should
maintain the privilege Of reviewing
each customers position at least
once during the year The banks
have not been Indifferent to the
business Of credit to the agricult-
wrists, and at times the aggregate
of credits extended by the banks to
Western farmers direct has been
considerably in excess of $50,000,0OO.
The loan and mortgage companies,
too, have performed an important
function in extending credit to the
farmers, but the mortgage loan is
not without its disadvantage. I'm
Ger the guise Of the short-term mort
gage there developed a system of
lpngterm mortgages, but with the
farmer at the mercy Of the lender,
being compelled to renew every five
wears or lose his farm should he
fail to meet the mortgage. Those
familiar with the situation were i'm
pressed with the necessity of some
supplementary organization to pro-
vide long-term credit on the amor
tization plan. The scheme now pro
posed is calculated to meet such
need.
The legislation now under consid-
Grafton is directly traceable to the
report of the Royal Commission APP
pointed by the government Of Sas-
katchewan four years ago to IN
ouire into ways and means for es-
tablishing agricultural credit. That
body worked in association with the
American Commission on Coopera-
ton and Agricultural Credit, and
its recommendations were influenced
by the findings Of the United States
investigators.
The Saskatchewan commission re-
ported in favor Of the creation, UNI
der provincial government auspices,
Of a cooperative farm mortgage as
ISOLATION, with local associations IN
sesliation, the central body 70 raise
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
Political Rivalry of
Nations a Factor

The word foreign is a political
term, but the word investment is an
economic one, and political boun-
daries do not obstruct the operation
Of economic law. Obviously, there is
not much difference in motive or in
principle between the investment of
a million dollars by a citizen Of the
United States in a paper factory in
Ontario and one in New York. 1t
is the likenesses, therefore, rather
than the differences, that should be
emphasized in comparing the prin-
ciples of foreign investments with
those of domestic investments. None
the less, there are differences, and it
is with them that we are chiefly con-
cerned in this paper. These differ
ences may be subsumed under the
heads: (a) internationally politi-
cal"; (b) Monetary; (c) Social.
A factor of great Importance in
the study of foreign investments is
international political rivalry. Ma
tional territorial aggression has
probably been a dominating factor in
a far larger proportion of foreign in
vestments than most people think.
A little over a generation ago in
Egypt, and more recently in Corea,
China and Latin America, many mil
lions Of dollars we're invested under
conditions that seem explainable only
by the motive of territorial ag
grandizement on the part of the ma
ton or nations whose citizens have
made the investments. Recent his
tory has shown that the steps are
often short ones from private invest
ments, say in railroad building, in
weak countries by the nationals Of
strong countries, to spheres of in
huence for those strong countries
with extra-territorial privileges;
from spheres of influence TO political
control as regards foreign relations;
and from political control in foreign
affairs to political control in domestic
affairs; thus bringing the aggrandiz-
ing nation into complete control of
the weaker and once independent
state. Sometimes private investors
are the tools of the aggrandizing
government, but more often probably
the government uses private invest
ments, which have been made by it's
nationals from purely economic mo-
tives, as an excuse for political
usurpation.
A second difference between do
nestle investments and foreign ones
relates to the currencies in which
these investments are made and the
monetary units in which their val
ues are expressed. Domestic invest
ments are usually made in the do
nestle standard of value and the do
nestle monetary unit-for instance,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
System Expected to
Increase Production

With the adoption of rural credits
legislation in Manitoba, Saskatche-
wan and Alberta, four of the prov
inces of Western Canada will have
government systems of long-term
loans to assist agricultural develop
ment. The British Columbia Legis-
lature in March, 1915, created an
agricultural credits commission and
authorized the borrowing of $751;
100000 on securities guaranteed by
the province for the purpose Of
granting loans to farmers. The
commission is empowered to extend
long term loans of twenty, thirty and
thirty-six and one-half years, on the
amortization plan, and also short
term loans, running from three 10
ten years, and not necessarily amor
tiled. To put the system into op-
Grafton the provincial government
last year obtained a loan of l,000,-
600 at 5.63 per cent, and the com
mission is loaning to farmers at 60
per cent. The British Columbia
legislation was passed as the result
os an investigation by a royal COM
mission of the working of the state
guaranteed loan system Of New
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
CAPITAL PERFORMS THE
SAME, SERVICE FOR ALL
The Dollar, Whether Invested in Argentina Arkansas,
Achieves Like Economic Results, Though here Are
Social Political and Monetary Differences

class of investments are corpora,;o.
and government bonds. Investment,
of this class may be made payable.
% In local currency, or (2) IN .
foreign currency, usually in the gola
standard currency Of an importar.
foreign country. In the former es,.
the risks due to fluctuations in ,hs
gold value Of the local monetary mi,
fall upon the foreign investor. AZ IN
the case of the proprietorship IN
vestments. In the second case, how.
ever, as for example when the IN.
vestor buys corporate bonds that ar.
payable principal and interest n
pounds sterling or United STATE,
dollars, the immediate risks incident
to the fluctuations in exchange are
shifted TO the local borrower. that r
the corporation or, more NARROWLY
the owners of the corporation stock
| say the immediate risk is shifted
TO the stockholders, for even here the
bondholders do not escape entirely
since a substantial depreciation in
the local monetary unit is likely TO
lessen the gold value of the plant
which is security for the bonds, and
may also lessen the gold value Of the
corporations products, especially il
they are sold to a large extent 10.
cally, for, as we have seen, local
prices do not advance at once pro-
portionately to the depreciation in
the gold value of the local monetary
unit.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
BY T.. w. kEMMERER
Professor of Economics and Finance in
Princeton University

Professor Of Economics and Finance in
Princeton University
(From "Thc Annals" Of the Ameri-
can academy of Political and So
ciaL Science.)
TIME basic principles of foreign
investments are essentially
the same as those of home
investments. The chief motive
power that drives the machinery of
both is financial profit. The princi-
pal criteria by which the goodness
of a foreign investment is judged
are the same as those by which a
domestic investment is judged-viz.,
income-yield, safety of principal,
and marketability. In both markets
the investor desiring these qualities
must pay for them. If he wishes a
high rate Of income he must pay for
it by sacrificing in safety or market
ability or both; if he wishes high
degree of safety he must sacrifice in
rate Of income or marketability or
both; and if he wishes high degree
of marketability he must sacrifice in
one or both of the other qualities.
Whether in the home market or
the foreign one, each of these con-
shutting qualities Of a good invest
ment has It's own conditions of de-
mand and supply. Sometimes one
is in particular demand, for in
stance, safety in times of business
uncertainty, and sometimes another.
The market price Of each in terms
of the other two in both markets is
the resultant of the interaction Of
the forces Of demand and supply, it
is the price at which demand and
supply in the particular market are
equilibrated.
There is, however, a glamour about
the word foreign which often blinds
the eyes to the fundamental likeness
of foreign investments and home in
vestments; and, just as a few bill
lion dollars worth Of foreign trade
receives more newspaper headlines,
editorials and political oratory than
several hundred billion dollars
worth of domestic trade, so when
American capitalists turn a few
million dollars into investments in
Europe or Latin America, it is her
aided as a great event, although the
investment by these same capitalists
of many times this amount in Texas,
California or Alaska, places per-
haps an equal or greater distance
from our financial metropolis, is
looked upon as commonplace.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
Canadian War Orders

According to the estimates of "The
Monetary Times" compiled largely
from official sources, Canada has re
ceived sl.095. 100000 war orders. o.
which s600.000.00O is represented by
munitions orders since the outbreak
OF the war 20 the end OF 1916. Sir
Thomas White now says that the Do
minion will get 100000, 900 OF such
orders in one yesr-~iel7-if they can
Be financed.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21

inevitable that Russia, pursuing the
same policy of high tariffs and for
eign loans pursued by this country,
will establish and build up her own
essential manufacturing industries.
Capital To Be
Well Paid
The extension of commerce, the
development of her facilities for inc
storage and expectation of gram
the building of hydro-electric works.
municipal and interurban transporta-
ton lines and harbor works, the es-
Establishment of refrigeration ana the
organization of the meat produce
industry and the miscellaneous man
ufacture of innumerable materials,
all incidental TO a rising civilization,
will make Russia a greedy consumer
of foreign capital. 1t is the place
where capital, being the most use
Z
full, is going to enjoy the highest rate
Of return.
If the United States is to partici-
nate in the Industrial rise in Russia
which will inevitably follow the war
il is first necessary to sufficiently un-
derstand Russia's resources and IN
dustrial status TO form a clear idea
of the solidarity and dependabillty
of Russian credit; then to establish
in our own financial markets the pre-
nier Russian security-the Russian
government bond. This gives us
the necessary entree into Russian
affairs and it would plainly be use
less to consider subsequently indus
trial financing in Russia unless our
investors understood and appreciated
the intrinsic value of the govern
ment securities. This should be fol-
lowed by wide dissemination OF
knowledge regarding Russia. Travel
to Russia on the part of those whose
opinion is valuable should be en-
couraged, and the first ventures IN
industrial finance should be made
upon the most conservative lines and
in respect to the basic industries. If
this course is followed it will not
only give a profitable outlet to Amer
lean capital, but will lead to the es-
adjustment of an extensive CONNER
cial trade between the two countries.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
BY S. ROY WEAVER

have ever been available In
the past are now in early
prospect for the farmers of the
Canadian West. The provincial gov
ernments of Manitoba. Saskatche-
wan and Alberta are cooperating in
a scheme which has been approved
by the grain-growers' organizations,
and similar legislation is pending in
the three provinces. The United
States is interested because it is
the only present market where the
money necessary to the success of
the project can be secured.
The rural credits programme has
a dual attractiveness to the govern
ments economic and po-
litical. IL promises TO provide 6 or
z per cent money for the agricult-
wrists, meeting a demand which has
been growing insistent for the last
half-dozen years. II is also po-
litical coup, for the Liberal admin
istrations in the three prairie prov
inces appear to have run ahead Of
the federal government in devising
a definite scheme of rural credits.
Sir Thomas White, the Canadian
Minister of Finance, in his last bud
get speech promised consideration
by the Dominion authorities during
the present recess of the question
of the provision of facilities by
which loans, repayable on the amor
tization principle, might be secured
by the farmers at reasonable rates.
limitations have been given that
legislation establishing a system of
rural credits under the auspices of
the Dominion government might be
introduced this year in the Canadian
Parliament.
The problem of agricultural credit
in the Canadian West has received
much attention during recent years.
Five years ago the establishment of
some proper system of farm loans
by the Dominion government was
strongly advocated by the present
Solicitor General. The Canadian
banking organization is not adapted
to meet the requirements of the
agricuturists for protracted credit.
Any banking system which properly
limits its operations to purely COM
mercial banking functions could not
be expected to provide such long
term credit as the Western farmers
demand. At the last decennial re-
vision the bank act was amended to
permit the banks to extend loans on
the security Of livestock and stored
grain.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
How Loans
VIII Be Made

Loans will be MADE, upon the rec
ommendation of the committee in the
municipality in which the applicant
lives, for twenty, thirty or forty
year terms. Principal and interest
must be repaid in equal annual in
stalments, so that the debt will be
entirely discharged at the end of
the stated term. Provision is made,
however, that the farmer may pay
off his mortgage in full at any half
yearly period. Every farmer who re-
ceives a loan will be required to be-
come a shareholder of the associa-
ton to the extent Of per cent of
the amount of his loan. For exam
pie, when the farmer borrows 1000
from the rural credits association,
giving a first mortgage for that
amount, he will receive $3.50 in cash
and $50 in paid-up shares in the as
ISOLATION. All stock not held by the
borrowing farmers will be held by
the government. A borrower must
relinquish his stock when he dis
charges his mortgage. No dividends
will be declared until a reserve &C
count equal TO 20 per cent Of the
paid-up capital of the association has
been accumulated, and stock held by
the government will be non-dividend
paying.
Money will be loaned by the rural
credits association on first mort
cages on occupied farms for the fol
lowing purposes only:
/. To provide for the purchase Of
land for agricultural uses.
2. To provide for the purchase of
equipment, fertilizers and livestock
necessary for the proper and rea-
sonsble operation of the mortgaged
farm. The term equipment" to be
defined by the board.
3. To provide buildings and for
improvements on the land. The
term improvements to be defined
by the board, who may vary same
in different cases.
4. To liquidate the indebtedness
of the owner of the land mortgage
existing at the time or Indebtedness
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
Our Animal Population

The following report, issued by the
United States Department Of Agrleult'
ure, shows the number and value Of
farm animals on January l Of the years
indicated:
Swine
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21
Farmers Now
Pay High Rates


Pay High Rates
The plan has been worked out on
the assumption that money can be
secured on the credit of the prov
inces at per cent. Expenses of
administration are estimated at
slightly under | per cent, so that
the loans would be made available to
the farmers at per cent. At pres
ent the lowest rate of interest on
mortgages is 7 per cent, and that
only in a portion Of Manitoba.
Farmers elsewhere in Manitoba and
in all parts of Saskatchewan and
Alberta are paying 8 per cent as a
minimum, with plenty of mortgages
at 8 per cent and a considerable
number at 10 per cent.
1t is obvious that the proposed
rural credits legislation has decided
advantages. Even if the provincial
governments should be unable to
raise the necessary money by bond
sales at less than 5la per cent, loans
to the farmers in most districts of
the West would be provided at lower
rates than are charged now. More
over, the rural credits scheme offers
a long-term credit on the amortiza-
tion principle, which is far better
adapted to the requirements of the
Western agriculturists than are five
year renewal mortgages or short
term bank loans.
The chartered banks have not OBJ
jected to the rural credits plan. On
the contrary, they admit frankly that
1t will be of considerable advantage
to the farmers in bringing about a
general reduction in mortgage rates.
1t is interesting, however, to recall
a recent statement made on behalf
of the bankers in the course Of a
reply to certain complaints by the
Western agriculturists: 1--WE believe
it is now recognized by the leaders
of the farmers associations that in
most cases the financial difficulties
of Western farmers are traceable to
too much credit rather than too
INDEPENDENTLY too much Of the
wrong kind of credit, namely, land,
implement and store debts, etc. In
this connection it may be said that
banks will welcome the coming OF
the time when the mass Of Western
farmers will have so shaped their
affairs as to permit of their obtain
I ing all their credit from the banks
and paying cash for all their pur-
chases of equipment and supplies"
II is undoubtedly true that the
farmers have had too much short
term credit. The longer term loans,
repayable on the amortization plan,
if wisely administered, should not be
subject to the same disadvantages.
The loan companies, which are like
ly to be affected the most seriously
by the Inauguration of a rural cred
its system, have not offered openly
any organized opposition TO the pro-
posed legislation.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-21

Census report Of numbers AprH >"
1910. Ian,
THE report as printed above s'0'
the revised figures for 1915.