FIFTY MILLION STRONG 



place on the market under the guarantee of the national 

 association a new type of mortgage bond, a gilt-edged invest- 

 ment for all the people. 



The Hon. Myron T. Herrick, former United States 

 ambassador to France, thought that the credit facilities of 

 the farmer should be improved through private initiative 

 rather than state aid, although uniform laws to standardize 

 credits, to provide careful supervision and to guarantee 

 perfect safety should be passed. He spoke of the unenviable 

 state aid experiences of Denmark, France, Russia and some 

 of the Balkan countries and referred to the experience of 

 the Federal Government in 1836, when the surplus of the 

 treasury was deposited with twenty-six states. New York, 

 the most populous state, lost all of its share, over four 

 millions, most of which was invested in farm loans. He also 

 referred to the recent experience of the Federal Government 

 in irrigation projects, which have cost over $100,000,000 and 

 have proved unsatisfactory both to the Government and to 

 the settlers. All agree, however, that the credit facilities 

 of the United States are bad. So his first recommendation 

 is the enactment of proper real estate laws, with the adop- 

 tion by all the states of the Torrens system, with the revision, 

 where necessary, of foreclosure laws, and with the enactment 

 of permissive laws with reference to bond and mortgage 

 companies and landshafts. 



Early in the 1915-1916 session of Congress there was 

 introduced in the House a rural credits bill providing for a 

 federal loan board to be appointed by the president and a 

 number of federal loan banks, each to have a capital of at 

 least $500,000. These federal loan banks would loan to 

 farmers through local associations. Of course, this bill is 

 likely to be considerably modified before it is enacted into 

 law if it should finally become a statute. 



H. Taxation 



A study of the taxation laws of the country reveals the 

 fact that most of the states still have what is known as the 



62 



