The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-03-18
HAS PLAN FOR
A BANK OF
AGRICULTURE
Texas Cattleman Pro-
poses French System
To Congressmen

WASHINGTON. March is-E. c.
Lasnter. Of Texas. large cattle raiser
and an officer of the National Live
Stock association. who came to Wash
ington to set before the house agri-
culture committee an array of ncts
and figures IN regard 10 the meat
packing industry's effect upon the
welfare of consumers has proposals
for financing Erowers of live stock
which he believes would be Of benefit
TO them and TO the public.
The live stock business il carried on
largely on credit and it Is claimed
that the borrowing az present has to
be carried on through packer channels
through the very persons who buy the
producers live stock. AFR. insater
says;
"ln this country The people get for
thriv savings about 9 per cent. These
same fings. when tley get into
actual use reducing the ratV materials
aud foodstuffs for the nation. are paid
for by the farmer at per cent.
NNMN NNMAANlN - NNlN NNAAN NANAhNA
among those supposedly civilized
where the intcrst rates are higher TO
the roduccrs of raw materials and
foodstuffs than those charged TO the
mercantile aud manufacturing pur-
suits
In the pre-wur days. the difference
between the Bank ~ France rate and
that charged 10 the peasant engaged
in agriculture. was usually about one
hall OF ore per cent, ana never more
than ono percent. with us the differ
encc between the commercial rates
and credit 20 the farmer is usually 8
To per cont.
The Chilean Plan.
Rack ln 1856 chile was having
great difficulty iu financing farmers
and rinchmcn at reasonable rate OF
interest so the nation undertook to
improve the situation by creating
what was designated the Agricultural
Bank of chile. Their mode of opera
,lou was this: Thcy created the ma
emery Tor yBluing the farms and
ranches of chile. and when a farmer
desired q Ion. his holdings were up-
praised and e. given amount OF bonds
issued against thcm-thc Bank OF
Agriculture indursing these bonds
They also created the machinery Tor
handling t"esc bonds in France. There
was no local capitol in chile az this
Time tuat could be used for this bust
ness They undertook To furnish the
larmtr- with credit ut the rate OF 5
per cent. lu 1879 this rate had been
reduced tu D. per cents per cent
less than this. one OF the richest
countries of the world. accords TO thcii
farmers. T. tu tins lime 1919. there
had never hocn default OF interest or
any OF these bonds indursed ana su.
pcrvis, by the Agriculture Bank OF
I chile.
what chile aid In 1856 could b,
/ easily done hy this country In 1920.
The ITViE'h System.
"Thc mode 81 supplying credit q
, the peasant farmer OF France Is some
/ what different. They also have or
! ganized bank OF agriculture which
| works about this way A community
/ organization which We WI term
I local bank say is composed of q
[ farmers one John Smith, desires
loan OF 500 for a given purpose. I
Z Is passed upon by the directors Of hi
local bank and II approved he exc
I cutes his note IN favor Of tho loya
/ bank II the local bank has th'
money In hand the uotc stops there
! n the local bank has not the moncl
In hand, the local indorscs the note q
/ John smith ana u IL sent to the re
/ glonll bank Of RFriculiure--thus be
coming two-name paper II the re-
pional bank has the funds the not
stops there ana the money Is remitte
to the loc.l ana IN the event that tn
regional has not the funds, Il indorse
the John smith note. This makes
three name paper. II b. sent to IN
Sank uf France for discount,
When thu Aidrich commission wa
investigating the banking systems O
Europe Mr. Aldrich asked n that wa
considered safe banking. he repl
was that The Bank of France ha'
never lost dollar. on paper d
handled,
Roth OF these methods could b
enacted into law In the United stat
ana usst tn advantage boy the pro
ducers ~ i've stock ana an food
stuffs."