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The Commoner
OCTOBER, 1915 -
31
Germany's Rural Credits System
Mr. David Lubln, American dele
gate to the International Institute of
Agriculture at Rome, is a world au
thority on rural credits. The follow
ing condensation of an address de
livered by him at tho Cincinnati
Grain and Hay Exchange, AugU3t 6,
was furnished the Farm Life by the
Chamber of Commerce of that city.
As our lands were practically given
away free, and as the life of our na
tion is but a century and a quarter
old, we should by this time not have
had moro tban a trace of renters. Wo
Bhould be a country of freehold own
ers ot farming laud, where the rent
BOOKS RK0E1VKD
India and tho War. With an in
troduction by Lord Sydonhnm ot
Combe, formerly governor of Bom
bay,. With 62 illustrations. Hoddor
and Stoughton, Publishers, London,
New York, Toronto. Price 1b. net.
America and tho New World-Slate.
A plea for American leadership in in
ternational organization. By Norman
ing system should, in substance, bo'AnBell, author of "The Groat Ilia
Some two years ago when the
American commission was at Nie
weid, a town -several hours from Co
.blentz on the Rhein, there was a cel
ebration commemorating tho life of
one of the founders of rural credit
tu Germany, Father Reiffeisen, and
tho committee of arrangements
asked me to speak in the name of
tho American commission. I did so
by stating that in my opinion there
was no one nation among the great
powers that possessed greater resist
ing force; that would when put to the
test transcend the -strength and en
durance of all the other powers that
might bo brought to bear against it
that this power was Germany.
A close study will show that the
real strength of the German nation
came as a result of her Landwyrt
schaftsrat system of scientific distri
bution of her agricultural products,
and her efficient anil effective systems
of rural credit. Especially so her
Landschaft syBtem of rural credit.
It was these two systems that en
abled the farmers of Germany to see,
hear and walk within the field of
commercial experience as radically
and normally as those engaged in
financial and commercial projects in
the cities. This is the cause that
made Germany strong.
In recent times a change has come
about in agricultural conditions. The
end of the 19th and the beginning
of the 20 th century brought forth1
some new conditions. The rapid
carriage and rapid communication
and modern means have wonderfully!
sharpened the wit of the urban to
an extent that he has substantially
taken possession of the domain of
distribution of the products of the
farmer.
We must adapt and adopt a system
which shall give the American farm
ers the necessary commercial knowl
edge, and this can be done by the
adaptation and adoptation of the
German Landschaft system. There
should be a semi-official organization
under charters from the United
States government for the forming
of a township organization in each
township in every county in tho
United States and for the election by
the township organizations of their
county organizations, and for the
election by-the county organizations
of a state organization, and for the
election by the state organization of
their national organization.
These organizations should have
two-fold function. There should be
the legislative function by the un
paid representatives and the working
functions by the paid employees. This
semi-official organization when com
pleted would embrace four, five or
six million units. The working por-
unknown.
But what does tho census tell us?
The United States census of 1910
shows that 37 per cent of all the ag
ricultural land in tho United States
is now in tho hands of renters and
that 1G per cent of these renters
were made during tho past ton years.
This was in 1910. It is now 1915,
very near 1916, and at the same rate
of increase we may now have 60 per
cent of renters; and shall tho 50 per
cent increase to 60 per cent, then to
70 per cent and then on to 80 per
cent and 90 per cent?
Shall we follow in the footsteps of
old Rome that perished, and perished
miserably as she deserved to perish,
as all nations deserve to perish who
think less of their birthright? This
is not merely a local question as to
time and place, it is a broaa econ
omic question that is even a broader
question than is a great political
question. It Ib a question' of the life
of this nation.
The Landschaft system of rural
credits in substance is a merger of
land by a number of land owners.
These land owners obtain a charter
from the central government.
Tho Landschaft is formed and they
elect a board of directors and these
directors are sworn in as govern
ment officials and are ready to pro
ceed to business.
One of the members presents him
self to the board of directors for a
mortgage for ?10,000 on property
worth say $20,000.
The mortgage is made out-and Is
exchanged by tho board of directors
for a bond.
The bond is sold in the open mark
et and the farmer puts his money in
his pocket, and that ends the trans
action so far as borrowing is con
cerned. He pays his interest to the board
of directors.
The board of directors pay it out
to the bond-holders.
An additional one-half per cent is
paid for on account of amortization,
which pays off the debt.
The loan is made for from 50 to 75
years, at the end of which time the
Interest and principal is paid through
tho amortization.
The rate of interest Is 3, 3J6 and
4 per cent.
This system has been In operation
in Germany for 161 years and there
has never been a single failure.
The bond Is eagerly bought up by
that vast number of people who de
mand first of all unquestioned secur
ity. The Landschaft bonds of Ger
many have been rendered so safe
that tho law directs that the widows'
and orphans' trust funds shall be in
vested in these bonds.
There is no necessity for the
United States In enacting the ncces
sion." etc. G. P. Putnam's Sons, New
York and London. Price $1.20, net.
An Art Philosopher's Cabinet. Be
PreM. London: IlHinpltrey MM fort,
Oxford University Press. Pric $1.61,
Tho Two Virginias. Genesis of 014
and Now. (Pamphlet) "A Romano
of American History." By Granvilto
Davlsson Hall, 240 Beach Koafl,
Glcncoc, 111. Price 25 cento.
The Co-Cltlzons. By Cora Harris.
Doubleday, Pago & Company, Garden
City, Now York. Prlco $1.00, not.
Tho Japanese Problem In tho
United Stateo. An Investigation for
the commission of rotations with
Japan, appointed by tho federal coun-
ing salient passages from tho works ;cl1 of the Churches of Christ of Amor-
on Comparative Aesthetics of George
Lansing Raymond, L.H.D., former
professor of aesthetic criticism In
Princeton university. Selected and
arranged according to subject by
Marion Mills Miliar, Lltt. D. G. P.
Putnam's Sons, New York and Lon
don. Prlco $1.50.
Economic Aspects of tho War.
Neutral rights, belligerent claims
and American commerco in tho years
1914-1915. By Edwin J. Clapp, pro
fessor of economics, New York uni
versity. New Haven: Yalo University
lea. By II. A. MlUIs. professor of
Economics, Univorsity of Kansas.
Tho Macmlllan Company, New York,
A Smile, Lovo and a Tear. A little
book ot versos, tragedy, sentiment
and humorous dialect. By Robert T,
Owens. Tho Gorham PrcBs, Boston.
Tho Mighty and tho Lowly. By
Katrina Trask. Tho Macmlllan Com
pany, Now York. Prlco $1.00.
Tho Conklings in America. By Ira
B. Conkllng, Washington, D. C. Pub
lished by Chas H. Potter & Co., Wash
ington, D.C. Prlco $1.00.
six million units, tug wonting poi- u..v - :. .w stnte It
tion of this organization would con- sary Jaws to coerce any .state. it
RiRf nf o .BWDt.n wFh a Rfciff of would simply provide a cnarter con
certain stipulations
sist of a secretary with a staff of
typewriters, messengers and corres
pondents. In substance: What the
chambers of commerce, boards of any state firt he comDlied with
trad A nionrin.. Tin. Rtoclc ex-' could and would be compiiea wuu
toinlmr certain stipulations. iu
charters would freely be given to
nnv fltate where tne bupuikuuub
trade, clearing houses, stock ex
changes, bursars, pits and the mer
cantile agencies are to commerce and
finance.
In place of the farmer, as today,
seeing things commercial through
his two eyes, he would, under the
system here outlined, see through
many millions of eyes. His commer
cial power would be vastly augment
ed and with one bound the commer
cial pygmy that was will rise up the
commercial giant that he will be.
,i hr held from those wnero .
CThis1rural credit system together
with the scientific distributive sys
tem would give this nation that
strength, that soundness to the core
which would enable it to carry out Its
mission: Its mission Is not merely
l. m comfort the store-man,
the mechanic, the professional man
or the farmer, but its mission Is to
be the servant of the nation.
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