The Lancaster news. (Lancaster, S.C.) 1905-current, July 15, 1913, Page 2, Image 3
: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
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Chamberlain's Colic, Cholera and
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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
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K W. OKOVH'S signature on each box. 25c
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<
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preserves th<
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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."
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