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Show CREDIT SYSTEM FOR FARMER Landshaft Plan as Operated In Germany Ger-many for Years Has Shown no Failure or Depreciation. "The Landshaft system of rural credits would be the eafest, most practicable prac-ticable and most advantageous system for the American farmer," declared David Lubin, delegate of the United States to the International Institute of Agriculture at Rome, while in Washington Wash-ington the other day. "It is the only system, in my opinion, that can be made to provide a bond that will float and maintain its value without government gov-ernment guaranty, and It Is the only co-operative plan of land mortgage credit. In place of being a corporation corpora-tion of lenders, the Landshaft association associa-tion is a co-operation of borrowers. Under this plan mortgage bonds would find a ready sale in the open market, as In Germany, at from 3 to 4 per cent, and run on the amortization plan from thirty to fifty years. It Is the only plan, In my judgment, that avoids the hazards of banks or banking, for it requires no banks and does no banking. bank-ing. It requires no initial capital and can be conducted by the farmers themselves them-selves at a trifling expense. In 151 years In Germany this system has Bh" no failure, r? Jops jin lawsuits, no repudiations nod no depreciation. "Bonds under the Landshaft system are of value equal to government bonds In the open market and. in time of panic or war hold their value above government bonds. It is really the only plan of land mortgage bonds that affords a perfectly safe investment to the capitalist, the servant girl, the business man and the trust funds of widows and orphans. If such a system sys-tem were adopted In this country it would be necessary, of course, to modify mod-ify our laws." |
