Evening star., 1928-02-26
i. S. TREASURY is CLASSED
AS GREATEST BANK IN WORLD

ton can be better adapted to it's busi-
ness needs. but such changes probably
Will BE- simply refincments upon the
splendid base structure which exists It
may we'll happen that the greenbacks,
tho national bank notes. the silver GER
tinratrs and snmn oth"r minor forms Of
currency which are still floating around
may he retired. and In lieu thereof Fed
eral Reserve notes made the only note
circulation in the country.
Farm Loan System.
The Federal farm loan system is also
the. outgrowth of the Aldrich investi-
CATION OF European credit facilities of
l907-I9l0. The system provides for
the money needed to purchase farms
and for the amortization of such loans
over q long period of years The latest
report from the banks shows that they
are loaning $l.15O,943, 900 to the agri-
cultural community. while joint stock
land banks. which function under the
supervision Of the system are lending
$607. sci 900: total of long term credit
thus made available to agriculture of
sl.75e,834.000. Later on 1t was found
advisable to adopt another idea from
'ahoar6-the financing OF the farmer
| over the period required to make and
harvest his crops. which led to the or
eanization OF the intermediate credit
banks. These banks are not function
Ing perfectly as yet. but with further
| experience will undoubtedly be de-
veloped to a point where they will be
more and more valuable At the end
| Of 1927 loans by these banks. chiefly
| on cotton. aggregated s3l. .991 900 and
I they were also rediscountins paper for
! an aggregate amount of S43e24 900.
| Although the smaller banks through
out the country TO considerable
extent give credit facilities to the small
business man. We still have need OF a
better system for a!fording such credit
popular banks as they are called
abroad.
The United States In two !mportan,
ways afford the people of the country
facilities for protecting their savings
During the war she war savings sys.
tenn was adopted from England. which
took the form OF issuing in exchange
for snail savings war savings stamp.
and war savings certificates Th!:
| system worked so admirably that IL /.
still In use here, as we'll as In England
as a means to promote thrift. thu
! stamps and certificates now beius
known here as Treasury savings stamp:
and certificates. There are over $500 :.
100000 OF these now outstanding II
June. 1910. Congress established tn.
postal savings system. making II posi-
BILE for the people to deposit theil
savings at the local post Office. Baci
of tfem are all Of the assets OF thi
United States Government. and a, tn
same time the depositcr obtains mod
crate rate oi interest These pcsia
savings banks have grown until. &c.
cord.ne to the latest report OF III:
service. they had over STAT 100000 or
deposit.
Governmental Partnership.
| The experience OF our own and Other
countries has shown the danger and
yet the necessity Of governmental
partnership or cooperation in the
handling Of the credit structure. Jus'
| nox such cooperation can best be AZ
/ forded has been one OF the difiicul,
| questions which has had 10 be worked
out by q process of trials and errors
! and IL would seem as t. so far as ouI
| own country is concerned, we had hi
upon a happy solution Of the problem
| II has been especially difficult TO do SC
| because Of the fact that we are ~ In
! dependent Commonwealth linked 10.
| gcthcr for certain common purposes In
q FEDERAL form Of government
| Including Federal statutes. this give;
10 different kinds Of banking laws. and
thus makes 1t quite problem to know
how To adjust the relations Of private
capital and what might be called pub.
lie capital. The vast sums of money
passing through the treasures OF ou,
| cities. OF our States and Of our Federal
! Government force a close relationship
between public and private interest;
| which cannot be ayoided-it must be
| accepted and therefore the great prob
! lem Is to limit public interference and
| public control TO the simplest possible
| terms.
| IEnnXflShi iANS