Seventy-Thikd Annual Report 1283 



we will call dynamic, or active dollars, and the other, static, or 

 dead dollars. Money in a dynamic form is ready money, and in 

 a position to multiply itself; whereas static money is mobile, or 

 practically unemployed. 



Money to be employed to advantage must find a constant, 

 dynamic use. With the ordinary commercial account, every dollar 

 is placed on the active line of engagement, and dollars not so 

 engaged can be immediately returned to the bank and ceases to 

 pay interest for the time it is not wanted. 



A farm mortgage, on the other hand, gives a fixed amount for 

 a fixed period, and this is contrary to commercial usage which 

 permits the free engagement of every dollar in current business. 

 Additional farm loans mean additional mortgages, and if a com- 

 mercial house were compelled to do business as farmers in this 

 country are forced to do, it would soon wind up in bankruptcy. 



While commerce has all the active or dynamic dollars at its 

 command, our great agricultural interests have but little, if any 

 kind of money at its command, and that little is mostly static or 

 dead money which is capable of being turned over but once a year. 



The ruinous supply credit system on the one hand, and the 

 domination of the buying interests over the farmers' products on 

 the other, has made it practically impossible for the average pro- 

 ducer to succeed beyond the ability to barely eke out an existence 

 for himself and family, securing only the actual necessities of 

 life, without luxuries in their homes, or the power to properly 

 clothe and educate their children. This condition cannot and 

 must not continue. The whole future of our great republic 

 depends upon the building up of a happy, satisfied, thrifty and 

 progressive system of rural life. 



THE EUROPEAN BANKING SYSTEMS 



You ask me, therefore, to explain how it is proposed to obtain 

 for the farmers of America the benefit of dynamic money, and 

 sufficient active capital upon which to operate their business, and 

 free themselves from the thraldom of the commercial forces which 

 have bound under a yoke the agricultural industry of this country. 

 It is believed that this can be successfully done by adopting the 

 methods employed by European farmers through their systems of 



