18 



land^and also in Ireland, systems which enable the farmer to employ his 

 credit when he needs his credit. The farmer's credit is part of his pos- 

 session; it is an asset, and it ought to be made available unto him when- 

 ever he requires it and whenever he can use it to his individual advantage 

 or to the advantage of his community. 



These systems have grown up in the old world, systems adapted 

 to local conditions and to the local needs of the people. It was my 

 pleasure to offer and secure the adoption of an amendment to the last 

 agricultural bill, raising a commission to visit Europe to study those 

 systems and report upon them. This commission has visited Europe. 

 It was in session yesterday and will submit its report at an early date.* 

 These systems of rural credit will not interfere with and they will not 

 overturn our established commercial institutions and not interfere with 

 the existing banking system. They are to supply a need which our 

 present banking system is not suited to supply, a need which they do 

 not at present meet, but a need which ought to be met either by the 

 establishment of new institutions suited to the purposes or by the readap- 

 tation of the existing institutions, not only personal credit systems, but 

 land credit systems. I submit one solution. In Europe they borrow money 

 upon land for long time periods at a low rate of interest. A loan of a 

 thousand dollars, for instance, will be repaid during a period of fifty-four 

 years by annual payments of $48.50. This pays the principal and liqui- 

 dates both principal and interest and pays the operating expenses of the 

 institution. An annual payment of $48.50 is easily met. A system of 

 this sort in this country would provide securities for the investment of 

 hoarded money, would enable the farmers to enlarge their farms and 

 improve their farms, and would enable the younger men to purchase 

 farms, as well as to improve them. The long time and the low rate 

 moderates the burden, so that his energies can be devoted to improve- 

 ment, so his credit is rendered available and is made a real asset, service- 

 able alike to himself and to the community. 



I think that Congress will at an early date pass a measure looking 

 to the estabHshment of systems of farm credits of this character. This 

 should be encouraged alike by those engaged in commercial banking 

 and by the community at large. 



Another respect in which the Comimittee on Agriculture can be of 

 service to the farmer is in the establishment or in encouraging the estab- 

 lishment of improved market facilities throughout this country, not only 

 in our larger cities, but in every section of the country. Much progress 

 has been made in this direction in some European cities and in some of 

 our own states, California and Florida, for instance. 



It is admitted by the Department of Agriculture that more than 

 $25,000,000 is wasted every year in marketing the cotton crop of the 



*The Commission has published the first installment of its report — Agricultural 

 Co-operation and Rural Credit in Europe. Senate Doc. No. 204. 



