444 ANNUAL REPORT OF THE Off. Doc. 



hills. I refer of course to the splendid markets of onr nation ; to 

 the well developed system of railway transportation; to the good 

 roads which have been builded in so many sections of our country; 

 to the improved seed grains; to the vast improvement in livestock; to 

 the wide diffusion of scientific knowledge of agriculture among our 

 people; to the trained leadership in agriculture and to the blessings 

 of self-government. No other generat'on of farmers enjoyed at one 

 time so many of these advantages whic i go to produce wealth, peace, 

 happiness and prosperity among the great masses of people in any 

 nation. It is fortunate for the world that the present moment finds 

 the American farmer so happily situated. We are facing one of the 

 great crisis in the world's history. The world is today looking to us 

 for food and clothing in a greater degree than at any time in his- 

 tory. These imperative demands must continue for a generation; 

 and if extreme privation, hunger and even starvation in the world at 

 large is to be averted, it must be through the industry and the in- 

 telligence of American farmers. We are facing a great opportunity; 

 but we have also a mighty responsibility. It is these grave considera- 

 tions which make the present movement for a better organization and 

 a more productive agriculture in America not only of national but of 

 "world wide importance. 



Your invitation was to speak on Rural Credits. I take it that this 

 invitation was extended because of my connection with the prepara- 

 tion of the bill now pending before Congress and which is ordinarily 

 taken to be the basis of legislation on this subject. I refer to H. R. 

 No. 6838, and presume that you will expect me to discuss the terms 

 of this particular bill rather than to attempt an address along general 

 lines. I beg to say, in passing, that it is vastly easier to present ideal 

 results which you hope may flow from a measure of legislation than 

 it is to construct the actual statute. It is likewise easier to present 

 criticisms against a bill, to give way to the fear which is always 

 present, than it is to suggest other provisions which will accomplish 

 the desired result and avoid the evils complained of. I am fairly well 

 acquainted with the literature on this subject and have read much of 

 what has been said and written by many who pose as authority on 

 this subject, without finding any helpful suggestions to those whose 

 duty has been to frame this legislation. 



We desire legislation which will be national in its character and 

 which will go into operation under favorable conditions in all parts 

 of the nation. It is especially desirable to secure as uniform a rate 

 of interest as possible and to reduce that rate to as low a degree as the 

 economic conditions of the nation will permit. It is likewise desir- 

 able to encourage farmers who are now in debt, to fund that debt 

 in long time obligations on terms which are tantamount to a savings 

 inve.stment. It is the experience of the world that only those who are 

 enabled to save a part of their daily income ever become financially 

 independent. It is in this sense that policies in endowment life in- 

 surance and shares in building and loan societies give financial inde- 

 pendence to their holders. We seek to extend these advantages to 

 the farmers who are in debt for their farms or who desire to borrow 

 money to improve them. Such results are only possible by an invest- 

 ment made under an organization, controlled by competent men, 

 supervised by law, and in volume of business large enough to invest 



