RURAL CREDITS 77 



they regard as their part under a scheme of rural credit legislation ? 

 Has this been realized under the Federal Farm Loan act ? 



29. Show how bankers may organize the handling of cotton under 

 the system of commercial banking already developed for other lines 

 of business. 



30. The cotton crop has been financed largely through banks in 

 the past also, has it not ? In whose hands ? Wherein does the differ- 

 ence in the present system consist ? 



31. Explain the nature and purpose of a rate sheet. See how it 

 compares with its parent, the " borrower's statement" of the regular 

 commercial banking world. 



32. What provisions of the Federal Reserve act were designed to 

 extend the credit facilities of the farmer ? Which of these is the most 

 important ? Why ? 



33. What is the meaning of " commodity" paper? How is it 

 employed ? Has its use benefited the farmer ? 



34. Have there been any proposals to change those provisions of 

 the Federal Reserve act which related to rural credit ? What changes 

 have been made ? Can you give the reasons for these changes ? 



35. Give a brief account of the Landschaft banks of Germany. Is 

 there any other type of rural-credit institution in Germany ? 



36. Look up the Credit Foncier (Herrick). What changes would 

 be necessary to remodel our mortgage companies into such an insti- 

 tution ? 



37. Do you believe that our rural-credit problem is to be solved 

 through a resort to co-operative agencies ? Is the federal farm-loan 

 system co-operative in character ? 



38. Can you see any reason why co-operative action should have 

 a larger place in the supplying of short-time credit than of long-time 

 credit, or the reverse ? 



39. What are the principal difficulties in the way of co-operative 

 credit ? Is it certain that what has been done in Europe can be done 

 here ? that it should be done here ? Give particulars. 



40. Are European institutions for rural credit given financial aid 

 by the government ? What reasons can you advance why our govern- 

 ment should do so ? 



41. Are there valid reasons why it should not ? Does it do so ? 



42. What is a " credit union" and how does it facilitate credit 

 extension ? 



43. Is the lending of some particular state fund upon moderate 

 terms by preference to home-owning farmers a form of state aid ? Is 

 it a desirable practice ? 



44. Would it be desirable for each of the states to establish a rural- 

 credit institution after the pattern of the Missouri Land Bank? 



