876 SUCCESSFUL FARMING 



systems have met the needs of the farmers in many of the European 

 countries. 



Good farming necessitates improving the soil, providing buildings 

 suitable for animals and crops, as well as a modern equipment of ma- 

 chinery. The farmer must have money to put in his crop, harvest it, market 

 it and maintain his family in the meantime. If he is obliged to sell to a 

 creditor or sell at a sacrifice to meet a debt, he is at a decided disadvantage. 

 This represents the condition of many farmers. It is a condition under 

 which railroads and manufactures could not develop. 



At a general conference on rural credits, held in Washington, D. C, 

 1914, it was the consensus of opinion that the primary demand is for a 

 system of credit that will recognize farm property of all kinds as security 

 against loans on the same basis that other forms of real estate and property 

 are recognized. There is no reason why farmers should. not have as low 

 rates of interest and as long time on loans as other lines of business. They 

 do not ask for special privilege or a laxity in security precautions. The 

 present banking laws favor manufactures and commerce. This is but 

 natural, since the banking system was developed first in the cities and 

 primarily for the purpose of aiding and doing business with commercial 

 and manufacturing interests. 



The problem which presents itself is that of securing a better system of 

 credit. With this in view, a large commission visited Europe during the 

 summer of 1914 to study credit systems. The finding of this committee 

 has been reported in full by Congress, but as yet the foremost farmers and 

 bankers of this country have failed to adapt European systems to our 

 conditions. (This report, " Agricultural Co-operation and Rural Credit 

 in Europe," is document No. 214, Sixty-third Congress, First Session, 

 Washington, Government Printing Office.) 



The credit of the American farmer is as good as that of farmers in any 

 other country. The strength of the European credit system lies in the 

 co-operation of a group of farmers sufficiently small that each is acquainted 

 with the others. The combined credit of a group of farmers in any part of 

 the world is security on which the money market will lend almost as cheaply 

 as on government bonds. The nearest approach to this co-operative credit 

 system in this country is found in the financial aid extended to Jewish 

 farmers by organizations composed of their own race. There are a number 

 of these in the State of New Jersey, the membership ranging from 20 to 40 

 each. The first of these was established in 1890, through the agency of 

 Baron de Hirsch. Since 1900 nearly $2,000,000 have been loaned through 

 this agency to Jewish farmers in this country. 



While the credit system is faulty, farmers may remedy conditions if 

 they will fully realize that tangible property, such as land, is not neces- 

 sarily the best security. The character and ability of the man is of much 

 greater importance than the land he may own. In many localities, farmers 

 have little difficulty in borrowing of local banks most any reasonable 



