XX BOARD OF AGRICULTURE. [Pub. Doc. 



grading law. A Boston concern, wishing to give away a barrel 

 of apples with each purchase, was forced to send to INIaine to 

 get enough apples of one grade to fill the orders. 



Rural Credits. 



In the secretary's report for 1913, among general recom- 

 mendations was this phrase: "A system of banking must be 

 established whereby farmers may obtain money on as easy 

 terms as other business men do." In connection with this, the 

 Legislature, on recommendation of the Board, passed a law 

 extending the scope of credit unions (and there is no doubt that 

 sooner or later advantage will be taken of this by some classes of 

 our farmers) ; but we need a more far-reaching law, a law which 

 will be of greater advantage in developing our now unproduc- 

 tive land and financing new agricultural development. This is 

 particularly necessary at this time as it seems probable that the 

 government will not pass any such legislation; and even should 

 it do so,- it will not interfere with a sound State law. To this 

 end, your secretary has studied at length the New York land 

 bank law and, after consultation with authorities in New York 

 and the Bank Commissioner of our State, has decided to 

 introduce this law at this time to the Legislature, believing 

 that in so doing there will be established a system of banking 

 which will materially aid the farmer. 



Other States are about to pass such laws, and the national 

 Secretary of Agriculture speaks of such legislation as follows : — 



It is the judgment of the best students of economic conditions here 

 that there is needed, to supplement existing agencies, a proper land- 

 mortgage system, operating through pri-\^ate funds, just as other banking 

 institutions operate, and this judgment is shared by leaders of economic 

 thought abroad. The national banking system up to the present time 

 has labored under restrictions imposed by law which made it impossible 

 for the national banks to solve the problems in the most effective way. 

 State banks, with fewer restrictions, with smaller capital requirements, 

 and ability to lend on real estate, have established more intimate touch 

 and have perhaps rendered greater assistance. 



The proposed law provides for the creation of a State land 

 bank, made up of associations who subscribe the capital, on 



