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Show FARMER SHOULD BE GIVEN CREDIT ROME. June 19 (Correspondence of The Associated Press.) The American Amer-ican farmer ought to be given credit at a bank without being compelled to mortgage his farm, declares David Lubln, delegate from the United States to the International Institute of Agriculture Agri-culture here. Mr. Lubin believes that, despite the federal land banks, the American farmer still suffers a great disadvantage disadvan-tage in obtaining cash to carry on nis business. To remedy this he has formulated form-ulated a simplified system of farm banking and suggested it to William G. McAdoo, the secretary of the treasury treas-ury and to the American food controller, control-ler, Herbert Hoover. "The farmer at present does business busi-ness under the stupid and costly policy pol-icy of the merchant of 40 years ago," said Mr. Lubin to The Associated Press. "He supplies his needs on long time credit in place of having recourse to the chief banks of the country for cash wherewith to place himself on a cash basis. The farmer is under the thumb of the money lenders and of the store-keepers who sell to him on a credit basis." . "Why can't he have a bank account, that Is credit on open account, like any other business man? He's gor land, the best security in the world." 'The Federal land bank has made it possible for him to put up his farm and cret money on Ions-time mortgage loans. These loans are made, however, how-ever, for enlarging the farm or making mak-ing improvements or for paying off old debts But only a limited number of farmers will mortgage unless they have to. The census for 1910 shows that of 3. 04. 722 farms we have 33.6 per cent mortgaged. What these farmers need, together with the other 66 4 per cnt, is credit at a bank In- stead of the costly, vicious credit at the town store." "The farmer can be put in a posf-I posf-I tion to pay cash for what he buys by j having the twelve Federal land banks Increase their functions so that, m-I m-I stead of merely granting mortgage i money at a reasonable intcrrt, they maj also Issue n certificate that the I farmer is entitled to credit within a fixed sum This certificate deposited' i in a commercial bank in an place in the union would enable the tarmer to obtain credit on open account at the rate Bay of 5 per cent pel annum and agalnsi this account he could draw by check, with the right of closing nrs account ac-count at nny time by paying up, when his certificate would be returned to him "What should be done is to reduce the banking business down to the farmer. Let's put him in the favored-nation favored-nation class, too. This can be done jy legislation permitting the land banlr. to certify to the farmer's credit." nn . |