The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-12
ADVOCATES IOWA
FARMERS MUTUAL
INSURANCE PLAN
Secretary of State AssO-
citation Appears Before
House Committee.

H.'g, Rowe. secretary OF the Iowa
Association OF Mutual Insurance
Associations, appeared last week
before the subcommittee OF the
House Committee on Banking and
currency on the McFadden rural
,redlt. and multiple insurance bill,
cxplaiRing the county mutual hre
assooktions OF Iowa. which are
managed by real farmers for self
service. He pointed out how they
have done a splendid work in re-
ducing the FIRE waste and incendi-
Hrisn of that State to a minimum.
besides giving the farmer members
IRE fnsurance protection in 1918 at
the low cost OF <1.S4 per $1,000.
lSut he failed TO make out as good
a case for the State mutuals. tnsur-
ance associations managed by pro-
fessionRl insurance men. OF which
he is one.
Rural Credit Society.
Tho purposes OF the McFadden
hill. Of which the Kenyon bill In
troduced IN the Senate is com
panion, are 10 create two corpora
ttuus-a rural credit society con
fft1lEd tNtlu-4NtAF bF AeAA aANA7 80
the sale OF credit for production
only TO farmer members, and
multiple insurance league to fur
nish every Kind Of insurance TO the
farmer members Of the rural credit
society. except the fire insurance
furnished by the county mutuals.
The purposes OF the rural credit
society are: First. TO broaden the
market for productive farm credit
by giving the farmers access to
the financial and Industrial Centers.
iuestead OF confning such market
To- the local banks. and II the local
banks cannot supply the demand
the farmer must do without. fire.
CueutIv to his ruin. Second. TO
limit all credit 10 a productive pur-
rose. for such credit reproduCes
.tseIf in many cases several fold.
whereas when the borrower obtains
credit for consumption or pleasure
h.. has nothing with which To meet
his obligation on payday. Third.
o. reduce The awful expense tncr-
dent 20 deposit banking. The farm
or must remedy that banking eN-
p-use just as he has reduced his
fire Insurance expense in his county
mutual Fourth. 70 give longer
time than u is safe for the deposit
bank To give for the payment of
uPOduCtive credits. Secretary
Hoover recently announced tn"
farmer needs from one TO three
years time on his credit for the
purchase Of farm equipment The
same thing is true with reference
To credit used To purchase live
stock. both for breeding and work
purposes. because none Of such
,-redits reproduce themselves in the
short time which the deposit bank
- must exact. for the bulk of the
bankers borrowed capital is vir.
finally PAYABLE on demand
In<ureS Agriculture Credit.
A. to the need by farmers for
multiple insurance. Mr.. MCFadden,
author Of ths House bill. recently
said.
Agricultural production requires
~r much longer time and il attended
ty 50 many more hazards uhan the
production and diStrihu' on of COM
merce that il is difficult to under
stand how any one would employ
'He same credit machinery to finance
both operations. The manufacturer
by the use Of improved machinery
may speed up his activities and thus
materially shorten the period re-
uuired TO place his finished product
on the market. but the farmer must
rely on the slow processes of ma
tlr~.
The same thing is true respect
ing the hazards attending the two
uudertak inEs All will agree that
Lot
.auSists Of a stock Of merchants So
situated IN one building would be
an unsafe credit risk unless he pro-
rerted that wealth by fire insur.
arrr But fire insurance Is the least
90 the requirements TO insure the
suuudncSs Of agricultural credit.
In the first place there is no GER
fTiIrv that the seeds the farmer
S.ws will even terminate. II the
farmer wins that bet he begins a
series Of gambling operations in
vuIyiuC the sunshine. rain. frost
hail. storms and all sorts OF pests
i IS therefore ont Of the question
ro consider sound credit for agri-
cultural production without max
ing adequate provision for sound
and cheap multiple insurance. that
Is. insurance against any and every
contingency. Europe made such
provision for her farmers and we
must do likewise. n we hope TO have
safe and sound agricultural credit"
Multiple Insurance National Cues
tiOn.
II is contended by the advocates
"f the NCFadden- Kenyon bill that
all sound insurance depends on Sc
curing sIrsh a number Of isolated
risks Of a uniform amount as will
place the law Of average in opera =
tion. Tho county mutuals are sound
where the amount is uniform, be-
cause they are not subject to the
'c0nfaEration hazard" as is the case
With the city man. That is to saw.
You seldom find two farmers homes
50 close together that a fire origi-
mating in one will burn both, hut
the same frost which kills one
farmers crop frequently kills the
crops Of the whole state But ex-
tend the territory Of operation suf7-
GENTLY and il is relatively as safe
as fire inuranCe with the county mu-
tuals. Therefore the question of
multiple farm insurance is ma.
tional rather than a State question.
II is further COntended by the
advocates Of this bill that the only
way to secure a sound and efficient
farm multiple insurance system is
through the cooperation Of the
county mutUals. That is to say, the