8 



results comparable to those of which I speak. It is along that 

 line that we want to seek to develop the agricultural resources 

 of this country by the associational form of service of the two 

 kinds to which I referred. I would not confine it to that, but 

 I think that the greatest opportunity for development, the best 

 adapted to agricultural interests, is the associational form. I 

 believe in the incorporation of great institutions like the Credit 

 Foncier and those of a similar character, and I think that we 

 probably need some national legislation along these lines; but 

 for the associational form of legislation I believe this would 

 work, — an amendment of the national banking act, so as to 

 permit any national bank that confines its credit facilities -to 

 its members to be organized as an association without capital 

 stock. We have got a national banking act, so to the extent 

 that you will allow an association under the inspection of the 

 government, an association may be formed like the Landschaft 

 association, which is comparable, as I said, to the Associated 

 Press organizations and serves a great community. 



I know that most of you know the meaning of a Landschaft, 

 but if you will permit me I will take the liberty of explaining 

 its meaning briefly because it is through that kind of organiza- 

 tion that I hope we will be able to work. We will suppose the 

 State of Massachusetts passes a law which allows organizations 

 of farmers for the purpose of borrowing and for the purpose of 

 marketing and selling in different districts that are divided off 

 into townships and counties. Now, if a group of men want to 

 borrow money and there is no money in that township, the 

 men who want to borrow will find that an association may be 

 formed consisting of a president and a secretary and a treasurer, 

 and that organization will consist of all the men in that town- 

 ship who want to borrow money. They all come and make a 

 mortgage to that institution, and that Landschaft, instead of 

 giving them any money, gives them bonds running over a 

 period of years in return for the mortgage that they give to 

 that association. Now you will say, "What good will that do 

 the farmer who wants to borrow money?" It does just this: 

 that man receives his bonds, and these are negotiable in the 

 open market. He may make a loan for five, ten, fifteen, 

 twenty-five or even seventy-five years, in which he pays so 



