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:s PLEA :iON'S FARMERS ovision Should be Made for Hio Till Soil?Ignored in s, Agricultural Intere Consideration at cratic Congress. lias but to consider what is being done in Germany, Denmark and Ireland, particularly, by the operation of cooperative societies and undertakings among the farmers, to appreciate that there is some necessary relation between organization and cooperation by and among the farm"ml tim li!inkitiir Hchome which f 2 FLETCHER MAKE FOR NA1 Florida Senator Declares Pr< Financial Needs of Men \ Every Currency Measure est Should Now Receiv the Hands of Demo Lake T>xaway Special to Coluui- 1 bia State, July 12.?South Carolina i bankers yesterday heard of "Agri- I cultural Credit and Co-operation" < from one well versed to discuss this t subject. The principal address de- i llvered before the association was i that of Duncan U. Fletcher, senior < United States senator from Florida < and chairman of the American coin- ,i mission on Co-operative Hanking and '1 Rural Credits. i Senator Fletcher first discussed ( the need for a more elastic currency, j There is widespread dissatisfaction; j a remedy must come. That one does \ well to keep before him the words of "that patriot and statesman who sits in the White House," as delivered to Congress was the senator's convic- j tlon, the speaker quoting parts of 1 President Wilson's message to Con- j gress on currency reform. i I In any discussion m rum-uvj w. plan for a betterment of existing con- i dtttons the agricultural Interest must < be first and most seriously consid- 1 ered. Senator Fletcher said In part: "Agriculture has been completely Ignored in our Itching system heretofore. It is not only unjust to the farmers, but it is unsound in principle and unsafe in policy to continue that discrimination. Do you think it is wise to leave out of your reckoning this great industry when you frame your currency and banking legislation? "With these tremendous assets of the most stable character, steadily | increasing in value, as farm lands have, and these enormous resources in the shape of farm yields, something is wrong somewhere since financial needs of those engaged in agriculture can not be supplied on ovon hnlf so favorable as a re accorded those in other enterprises. "Somewhere that system is out of Joint or misses connection, which denies to that industry, lying at the base of all wealth, and which must prosper, if there is to he prosperity, and which makes progress if there is to be any. and which must expand and develop in order to supply the increasing demands of a growing population, if there is to be any growth of a substantial and permanent kind, just and fair facilities, equal in advantages to those furnished other great industries. Some may argue, 'Ah. but the farmers' assets are not liquid and therefore can not be utilized as are commercial assets, such as goods moving in trade.' The answer then is. we must devise a plan for making them 'liquid.' "Conceding such a necessity for the sake of the argument, the question arises, how? THE PROBLEM SOLVED. k"We are not without knowledge that In certain Euronean countries the problem has been solved. The American commission assembled by the Southern Commercial Congress, composed of two selected men from each state, three-fourths of which are actually represented, and five provinces of Canada, and the federal commission composed of seven men chosen by the President, are now in Europe studying the system adopted and the methods practiced there. "The commissions are now in France and will sail from Queenstown July 18 for home. "They will have observed the 1 wortting of the Ruropean co-operative rural credit systems: they will i have visited the farmers and the people and ascertained their experience , under these systems, they have noted . the laws governing and the manner of operating these banks and associations and witnessed the actual transactions. They will he ahle to recommend not alone soiup adaptation of those systems but improve- ) ments upon them. "The burning question of the day | is that of rural credits. I am proud 1 to have had a hand in focusing the country's attention to the inadequate I credit facilities of the American ! farmer; that agitation was set in mo- , tion by the Southern Commercial Congress at its meeting in Nashville in April of last year. This much we | already know, that the farmers in most, if not all. the European coun6 tries named get all the money they want at from 3to 4 V2 P<r cent per annum and they have been doing it for some 50 years, notwithstanding interest rates in general are higher those countries than in the 1 ' io nn ovnorlmpllt UllllPn OIHIVB. ?t. m .. V. V. no new Idea with them. They have been obliged to meet the difficulties which we are just approaching and they have demonstrated that agriculture need not submit to outrageous imposition in any civilized country. No sensible banker will disapprove of a plan whereby fertile fields may take the place of abandoned acres such as one man who, offering his laid for sale, was asked what about the subsoil and he frankly replied. 'It is all subsoil, the top soil is gone.' "No banker will object to a method whereby general and permanent wealth may be increased. One has but to note what has been ac.compllsed for the German and French farmers through the operation of their financial systems to realize the importance of our taking action along similar lines. It is folly to say we can learn nothing form the older countries and we ought to appreciate that when we recall that the European farmer gets twice as large a crop yield per acre as the American farmer and the German farmer is able to securp his credit through his cooperative organizations at onehalf the rate of Interest oridnarily paid by the American farmer. One mm?/: much be evolved In solving their financial problems. There can be no mccessful cooperation without credits. If the farmers will organize on a cooperative basis they can have a well established system of agricultural credits. CONGRESS WILL ACT. "Currency legislation by congress is Immediatily ahead of us. We can not wait for compilation of the data and the submission of reports by these commissions. They have unready, through the weekly letters they have sent out, and some subcommittee reports, given us much Information and much more will he furnished before the bill pending will he passed. But it is important that some recognition of the right and interests of agriculture he embodied in the measure soon to pass, and I appeal to you who are patriotic and pub lie spirited men to give thought to and expression of your views concerning this subject of epoch-making importance. "Intelligence and provident husbandry is necessary and it is the duty of all to encourage and stimulate it. "The Land Mortgage association (Laiulshaft) was first established in Germany in 1770. Heal progress was not made until 1880. The province of Saxony is typical and probably more nearly approaches conditions in the United States and we may take note of what is being done there. The Land Mortgage association there is a cooperative union of landowners for the purpose of securing loans on their lands by issuing bonds. It is not a stock company. No profiits to individuals are intended. The minister of argiculture of the kingdom of Prussia directs the business. When a loan is made all the preliminaries take place, the mortgage is executed to the assoeition and it than issues a bond or equal amount and sells it .There are many features about the bond that are characteristic. "1. It is secured by all the mortgages and property of '.he association. "2. It is transferred without indorsement. "3. It has no fixed maturity date. "4. The holder ran not demand payment?call the loan?but the association has the privilage of paying it at any time. "5. These bonds are regarded as affording the highest class security and favorite investments for trust funds. "In 1873 a Central Land Mortgage association was estahllsed in Rerlin for the purpose of broadening the market into international fields, but the results, we are told, have been disappointing. The provincial associations are members of the central. The most valuable feature to the farmer of these loans is the privilege of gradual amortization through annual payments made with the interest. To illustrate: On a loan made at 4 per cent, is added threenor oont !i mnrt iy.a tion and one-fourth per cent to cover operating expenses of tin* association and by paying this amount, a total of 5 per cent annually for between 40 to 50 years, the loan will be paid off. TIIK RURAL RANKS. "While this association is sufficient to provide the long time credit that is needed by the landowner, it does not supply working capital to meet the current running expenses, nor does it offer the renter or any farmer who does not own land any reffef"To meet this need the rural banks have been establishd. "Fredick William Raiffeiseen in-i tinted this movement among the peasant farmers in western Germany in 1X47. Hp established cooperative associations among the farmers to do their own banking. The RaifTeissen banks are founded and operated upon these principles: "First, unlimited liability of members; second, restricted area; third, no dividend to members, usually 4 per cent, paid to the stock owner; fourth, no salaried officers, except bookkeeper. "The present rural banks in Saxony are organized on the limited liability plan with the primary object to furnish credit to their member? for working capital at the lowest rate possible. I mention this particularly because conditions in Saxon> closely correspond to conditions in the i'nited States. The growing ol sugar beets is the chief business They do a business of $100.000,Ortf Der year in that province?about 1 Of miles wide and long. There are ?6( rural hanks In the province with ar average membership of 100. Then are three central organizations o which the local banks are members 1. The Central Cooperative bank which does a strictly hanking busl ness, having only cooperative asso ciations as members. 2. The Cen tral Cooperative association for thi purchase and sale of agrlcultura products. 2. The Union of Cooper atlve Societies, which oversees am superintends the operations of th local societies. "The transactions appear to b about as follows: The farmer goe to his local bank for a loan. TIi local hank applies to the Centra association. The loan Is granted THE LANCASTER NEW costing the farmer one-half per cent. 1 f more than local banks pay the Cen- I tral. The average Interest rate J charged by the Central bank was in i t 1909. 3.32 per cent., in 1910, 4.34 c per cent, and in 1911, 4.39 per cent. !s The rate of interest paid for deposits s was 3 to 3 Mi per cent. c "It is a serious question in my 1 mind whether the securities handled s by the banks should be the original 1 note and mortgage of the farmer, as i Mr. Davis proposes, or whether, as t in Germany, they, the original note | and mortgage, go only to the local t bank or association, except where r there is established a Central asso- 1 ciation. the association issuing the i mortgage bond which is in turn sold, i "" 1 - O- -< .. sola a c; , I liest" UUUUO illl'i u i couj liuivj v</ per cent, of them are taken by the f the people in the community where c issued. So good are the bonds of the local associations that it was found r the indorsement or guarantee or un- t derwritlng by the Central association t was not strengthening or helpful. c "The German farmers have over f $1,000,000,000 borrowed through t the sale of bonds by land mortgage f associations, secured by mortgages c on farm lands, none of It costing 1 more than 4 per cent, and in some i cases as low as three per cent. I | "With these lights before us we i surely can work out u plan?the best t plan?for promoting agricultural t economy, an important part of which f is agricultural credit. s "I am satisfied that governmental 1 supervision and control will be found t essential to the full success of such ' institutions as should be provided for < in this country . j LAW OF STATER. "T~ " -..-.,1 ,,rr> ootnli. 1 Ill V U lliiuu I IIKU i?c* lino ? ?.v?.w lished to a considerable extent. In New York the Jewish Agricultural and Industrial Aid association, under the excellent management of Leonard (3. Robinson, has made great progress in that direction, having in operation 17 credit unions in New York. New Jersey and Connecticut. Texas, New York and Massaehusettes have passed laws looking to the organization of credit unions. The prospects are. our financial system shall include distinctly rural and cooperative features and in this direction lies the salvation of our agricultural interest and the welfare of all the i people. . "Contraction of credit has practlrally the same effect as contraction , of supply. Kxpand or broaden the , field of credit and you have a similar result as if you increased supply. , The fruitful cause of panic in the past has been the contraction of money supply. The crash comes where , there is like contraction of credit. One of the important elements in a sound and satisfactory medium of exchange?money?is. the supply must be sufficient. The other ele ment are. currency?tne money must he accepted and used as money, and circulation?it must perform its natural function of exchange, otherwise we have the same trouble, when it is stored or locked up. we might expect where the money did not exist at all. 1 "If we sustain our prestige we must make progress and our ante ' on a ted financial system must he improved. We can not take first place iiy standing still. Uruguay, I believe, is the only country where the American dollar is at a discount?3 per cent. I have not so much complaint about our cur- i rency as I have about our banking 1 , laws,. "It does not follow that a country ; must enjoy prosperity and success | because it has a great quantity of ' money. "Those cuntries as a rule have the ; smallest supply of specie and bullion which have the most scientific banking system. "It is the character, not the quantity of our maney, that should have attention. TOWARD THE FARM, "Wo have plenty of It and the biggest stock of gold In the world; we are the richest at 107 billion dollars. But we will have monetary suffering unless we provide an ehastic credit system. The way opens toward the farms, even as Daniel's window | opened towards Jerusalem! "1. The farmer can join his neighbors and organize and cooperate so as to establish a credit rating just as the merchant does and he can have | his checking account at the bank ' for his current needs. This means that some form of rural hank must ; be provided. "2. The farmer can organize and cooperate and establish land mortgage associations whereby in some | form long time loans, with morti, zation features, may be obtained at low rates of interest and carrying other advantages. These plans would ! save farmers annually over $200, I 000,000 to the farmers of this couiiI try in interest alone. "2. By such system the funds ! would he kept in the locality where they are created. Through the farmer the money created in the community should be available there and serve its chief function at home. "It would he a fortunate and ad' vantageous practice for the hanks to ' keep their surplus at home. p "Under existing condition it is not ! to he wondered that hanks keep def posits in various cities away front home because in that way they realj ly buy collections, but it is not help) fill to the community. ) "4. Bank balances ought not to i flow steadily to centers where they i are used for speculative purposes, f "This brings us to our inexcusable reserve laws and practices. Under the laws governing national banks, - the country banks must hold 15 per - cent of their demand liabilities In - cash. They may redeposlt three, The Best Medicine in the World, i "My little girl had dysentery very e bad. I thought she would die. Chamberlain's Colic, Cholera and c Diarrhoea Remedy cured her, and I s can truthfully say that I think It Is e the best medicine In the world," ?? TtTltll^ M A ni?..A i\ writes mrs. vviumui ai vaaio, I, Mich. For sale by all dealers. rS, JULY 15, 1913. lfths of thl8 reserve In reserve city < mnks. These city banks must hold ] ! 5 per cent, of their demand liabili- ' ies in cash and they may redeposit ] me-half of this in the central re- l lerve city banks New York, Chicago < ind St. Louis. The country banks can i :ount as reserves threeflfths of the i 15 per cent, when deposited with re- < lerve agents and the city banks one- . lalf of the 2 5 per cent, when de- i >oslted with central reserve city mnks. 11 "The effect of this is. these cen- 1 enl nUv lionncif a rinu Vl < \ 1 < I nllltons of deposits made by banks. < These central reserve city banks i nust carry 25 per cent, of their de- i nand liabilities in casb in their i aults. They dare not tie up all their i unds over ami above this 2 5 per ( tent, reserve in time paper. ( "In time of stress any demands of ( igriculture on the country banks < ind of commerce and industries on lie city banks are passed up to those eptral reserve city banks. They have orgotten all about the possibility of hese demands. They have been absorbed in a practice which meant 'ontinuous returns to the banks. , They hunt for loans payable on denatid. They find that market in iVall street. Here they Ret higher ntes for call loans and the tighter he money, the higher the rites and he higher the rates the greater the. low from the country, towns, and smaller cities to the great centres. kVall street bids against the country md wins. The redeposited reserve noney of the other banks of the ountry is already there, and it will emain there because it can be loaned 'on call' and earn interest . "The banks of New York become mder this system of redepositing reserves the ultimate holders; they jormally carry $.r>0ft.nn0.00ft of cash esveres. equal to one-third of all the money in tho hanks of the country ind equal to one-sixth of all the law'ul money of the United States. "When the demand for money is ;orat the banks under the present system naturally raise interest and mrtail loans. This makes the situation worse. If there is real stringency. or a scare, they stop loaning iltogether?this increases the trouble. i DEMAND FOR CREDIT. "Business demands credit in vain. The actual value of farm lands counts for nothing. Agriculture is on 110 credit basis. The resources of legitimate industries offer on inducement in such times, the very times they need it, for credit. "Again, we can not afford to continue a system whereby the control r?f the money of the county and the control of credit may be concentrated in the hands of a small group of men. Better have the government look after that control If it is to be vested anywhere, and especially attend to the issue of tho currency. It IH ii MlilHlKHI ? UH Il trti ' inn menace of alarming proportions where 18 financial institutions in New York, Chicago and Boston, by ] means of interlocking directorates. ! have a voice in the management of I 184 corporations with an aggregate capital of $25,325,000,000. "These 18 financial institutions have 180 men connected with them ; in official capacity and these are i further officially connected with banks and trust companies, insurance compaine8, railroads systems, pro I lo v-ure a Cold in One Day Take LAXATIVK BROMO Quinine. It stops the 1 Cough and Headache and works off the Cold. I J>ruirBists refund money if it fails to cure. ! K W. OKOVH'S signature on each box. 25c TVi*? S ?J < ! preserves th< i It means b kitchen, and No fire to ki I STAND, Washington, D. C "* * i ? r Richmond, va. Norfolk, Va. . U .. > * ' T * '" - - ' * '* ,i sis ducing and trading corporations and ' public utilities corporations, and ! who can estimate the power they have to stifle competition, to work their own will in their own way, to control credit through the control of money, and thus, being master of the situatloln as to credit become of the commerce and industry of a nation! "It is not necessary to find this tremendous power active and exercised It is sufficient to know that it is ex- ' [ tint. Those who possess it may not 'mproperly Use it, but the m ;n who come after them in the management of these institutions may not be so considerate. It is an unsafe and un Round situation. No body of men responsible only to themselves can, in safety and Justice, whether they exercise it or not, possess such power, or possibilities of control, over the destinies, the very bread and butter, of 95.000,000 freemen. "These figures are staggering. The wealth and resources at their command hug the fabulous. Think of it?there have been but a little over 1,000,000.000 minutes since the birth of Christ. Here, In the hands of 18 institutions in this country, are piled up $25,000 for every minute of the Christian era! "What would be your chance in a business contest with either one of those institutions? "This is a question rather outside the scope of my subject, and I onlymention it by way of expressing the better that wrapped up in this idea of rural banks and co-operative so- , cieties properly organized by the producers of the country, lies the reasonable hope that such associations will help mightily in the solu tion of our monetary problems, trust problems and high cost of living problem. "Let me say. In conclusion, the banking interests of the country will not be harmed, but will share in the general benefits which will follow the establishment of rural credit and cooperative societies, and in the general development, including betterment of social and economic conditions. throughout the country." The Hesort Courteous. During the trial of a case an at lorney was musing a mruiis pieu iui his client when an ass began to bray outside the court room, the window of which opened on a pasture, ac cording to The Philadelphia Public Ledger. "Wait a moment," said the judge calmly. "One at a time, if you please." The lawyer presently had a good chance to retort. When the judge was charging the jury the ass again began to bray, this time at a greater distance from the court room window. "I beg your lordship's pardon." said the attorney. "May I ask you to repeat your last words? There is such an echo here I did not quite catch that sentence." Quite a Sneeze. Rennie, aged 4, met Harry, aged 5, and the following conversation ensued: 4*% "Whatsamatter your head?" "Pumped it ona ceiling." "Ona stepladder?" "No. I was playin* *ith my papa ona floor an' I was sitting on his tummy." "An' nen what?" "Papa sneezed." All things considered, good corn fodder is the best hay substitute. teady Evei of the gw Pler/ectij Ml Cook stov e rich natural Havor etter cooking, a cle less work. ndle, no drudgery of no sn ARD Oil. Of (New Jersey) BALTIMORE! PP?P??' pj i ? O SELF-DEPENDENCE. ** Weary of myBelf and sick of asking What I am and what I ought to be, At this vessel's prow I stand, which bears me Forward, forward, o'er the starlit sea. And a look of passionate desire O'er the sea and to the stars I send; "Ye who from my childhood up have claimed me. Calm me, ah, compose me to the end!" # "Ah. once more," I cried, "ye stars, ye waters. On my heart your mighty charils renew; Still, still let me, as I gaze upon you Feel my soul becoming vast like you!" From the intense, clear, star-sown vault of heaven. Over the sea's unquiet way. In hte rustling night air came the answer? "Wouldst thou be as these are? Live as they. ' "UnaTrlglited by the silence round them, Undistracted by the sights they see, These demand not that the things without them Yield them love, amusement, sympathy. "And with joy the stars perform them shining. And the sea Its long moon-silvered roll: For self-poised they live, nor pine with noting. All the fever of some differing soul. "Rounded hv themselves and unrogardful In what state God's other works may be. In their own tasks all their powers pouring, These attain the mighty like you see." 1 O air-born voice! long since, severely clear, A cry like thine in mine own heart I hear? "Resolve to be thyself and know that [ he Who finds himself loses his misery!" ?MATTHEW ARNOLD. An Appetizer. Chicago Ledger. I "Can't you get any work?" asked a woman of a tramp who had applied at the back door for food. "Yes, ma'am," he replied. "I was offered a steady job by the man who lives down the road in that big white house." "That's Mr. Oatseed. What was | the work?" "He wanted me to get up at four ! in the morning, milk seventeen cows, 1 feed, water and rub down four horses, clean the stables and then chop wood until it was time to begin the day's work." "What did he want to pay you?" "I dunno, ma'am. I didn't stop to ask." Subscribe for The News. The Best Hot Weather Tonic GROVE'S TASTELESS chill TONIC enriches the blood, build* up the whole system and will wonderfully strengthen and fortify you to withstand the depressing effect of the hot summer. 50c. m i Heat an I of the meat. ;aner, cooler coal or ashes, loke or soot. new 4-burner ction Stove 5 a whole meal ce, with least e n s e and >le. it stoves with 1, 3 burners. See III at your dealer's, te for descriptive ir to )MPANY Charlotte, N. C. Charleston, W. Va. Charleston, S. C.