DRY-FARMING CONGRESS, WICHITA, 1914 > 121 



too, by borrowing on the lands owned by a group and placing a mortgage 

 on all of them, jointly, funds are raised to be loaned out again to 

 individuals. 



While the financial history of America varies greatly from that of 

 Europe, still it is possible to adapt the principles developed abroad to our 

 own banking system. This has been proposed by the United States Com- 

 mission appointed to investigate agricultural credit abroad. 



The substitution of the credit of the group from that of the individual 

 is the key to the problem. 



It is to be hoped that real results will come from the bills offered in 

 the 1914 session of Congress. These proposals are based upon the utiliza- 

 tion of existing banks or the creation of cooperative banks authorized to 

 loan money for long terms on lands offered by borrowers for security. 

 The terms of the loan require an adequate value as a basis and annual 

 payments both of interest and principal. The length of the term, approxi- 

 mately 35 years, lessens the burden on the borrower in any given year 

 and does not act as a detriment against his efforts, as so often proves to 

 be the case in short term loans. While the cooperative credit and land 

 banks have been highly successful abroad, yet their existence has without 

 question increased indebtedness, and in this country would undoubtedly 

 augment the speculation in land, which is now one of the banes of farm- 

 ing, making it, instead of an industry, a kind of real estate enterprise. 



Financial and Market Organization 



It will be recognized that every business has its financial and market 

 organization, and the same must be true of agriculture. 



Three phases of the market relation may be put down and these 

 suggest problems that must be solved in their order. The first is the 

 standardizing of product; the second the establishing of uniform convey- 

 ors; and the third the direct entry of the producer into the market. Lack 

 of time prevents any adequate discussion of these points. They are given 

 as suggestive only. Some progress has been made in standardizing and 

 a little in the matter of uniform conveyors, but no great progress will 

 be made until the matter is taken up as part of a large problem in a 

 big way. This can be brought about through cooperative agencies better 

 than in any other way. 



It is said that seeing is believing. When evidences of possible methods 

 of standardizing and actual conveyors are presented, together with some 

 facts concerning the specific organization of marketing, agriculture can go 

 on. more rapidly than it has in the past. 



The purchase side has been greatly emphasized by the agricultural 

 colleges and the government departments, but we have now reached a 

 point where we must emphasize to just as great a degree the selling side 

 of agriculture. This will require, as already intimated, a careful study 

 and analysis of the problem, and the placing of exhibits before the farmers 

 in order that they may see what can be done. 



