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same service has been rendered for commer- efficient farming—are American conditions cial credit. I have great respect for bank- and habits which heretofore have made ers, but it will be acknowledged that the speculative adventures and industrial enterbankers of the United States made such a prises so enticing to investors and creditors. sorry mess of commercial finance, with recur- Railroading, mining, town-building, and high ring panics and wildly fluctuating rates, that finance of one sort or another have absorbed they were persuaded reluctantly to accept the the most of our available capital. Upon top Federal Reserve device of a college profes- of that the failure of a lot of wildcat land sor, and now they boast it as if it were their debenture companies in the late eighties gave own invention. The banker is a slave of a bad name to land loans. Money-lenders are habit and custom ; to him what is is right just about as human as other folk. Like sheep, and change is dangerous. It is well that he they followed their bell-wethers to the parched is so constituted, for if he were adventurous prairies of unproved productive value, and, like he would not be a safe conservator of credit. sheep, they follow their bell-wethers in runLet us weigh his counsel in order that we ning away from the present rich pastures of may wisely make haste slowly, but let us not proved productive value. Land loans are wait too long upon his hesitant initiative. not in the fashion, and your custodian of trust

In this mood let us see what is the need funds is a man of scrupulous conventionality. for rural credit legislation.

This premise must be accepted by every Consider first the bald fact that dependable thinking man as true: Farming land is the farmers in the West and South are paying source of all food and raiment; it is the 9.6 to 15.6 per cent, and distressed farmers prime means of all human sustenance. By 20 to 40 per cent for short-time operating all the rules of economic philosophy it should credit, and land borrowers are paying 8 to be the safest basis of credit. Readers of 10.5 per cent for five year loans with burden- rural credit literature have been told repeat

some commissions for renewals. No indus- edly that before the European war land loans . try can pay such rates and prosper. Farm- in Germany commanded a lower rate of in

ers are not prospering except in rare cases terest than Imperial Government bonds. The of genius, or under methods of niggard self- most eminent of the German rural econodenial. The profits on agricultural lands in mists three years ago gave me a reason, in the last few years have consisted mainly of words to this effect : Governments someenhanced values due to increasing population times fail ; they may be compelled to repuand corresponding demands for farms.

diate their debts. Land on the average of The cause for high-priced agricultural the years, under intelligent cultivation, will credit is twofold. First, and probably fore- not fail, because nature never repudiates or most, is inefficient and uneconomic farming. wholly defaults.” How much more prophetic But at the worst that is not altogether the he was than he then realized! It is certain farmer's fault. As a people, we have that the European governments at the close neglected the business of farming; in our of the war must repudiate in some degree, thinking we have put it to one side as a mat- at least to the extent of a compulsory reducter rather distinctively, if not exclusively, tion of the interest charges they are now pay." within the jurisdiction of Providence. The ing Department of Agriculture and the land- Mr. Jacob Schiff says : “We bankers know grant colleges have done much-incalculably that debentures based on farm mortgages much. -for the science of agriculture, for in- cannot be as readily sold as bonds of induscreasing the yield of the land and combating trial concerns or bonds of railroads." That plant and animal diseases, but little until very is true at present, but it is a fact due to cirrecently for the business of farming. To cumstances, conditions, and habits, and not increase the yield may or may not be to in- to economic truth, as the German econocrease the profit, for even in normal times a mist's philosophy plainly proves. The purbig crop usually sells for less gross money pose of rural credit legislation is to institute a than a small crop, so that the more the farm- reform which will square credit practice with ers produce the less they receive. Without economic truth. This brings us to the crux reciting experiences or piling up illustrations, of the whole matter, to the point of promise it is sufficient to say that farming is rated as and the point of difficulty in American rural an unsafe or undesirable credit risk.

credit legislation. Second-and fully as consequential as in- European land credit began a long time

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1916

THE BEGINNING OF RURAL CREDIT

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ago among the impoverished landowners who but they originated in the necessities and pledged their wasted farms severally and col- were wrought out in the thinking of the peolectively for long-time loans to be paid on the ple most concerned. In this country we are amortization or sinking fund plan, like mu- by legislation anticipating, with the hope of nicipal or industrial bonds. That was the averting or ameliorating, the dire distress Landschaft of Prussia, which in modified which was, as it were, the birth-pangs of form has been adopted in other European rural credit in Europe. To change the figure countries. The Raiffeisen rural bank, or of speech, the European system was short-time credit society, began later among evolution. We are endeavoring to fashion a the lowly peasants who grouped themselves system out of hand. The European land together in a compact of unlimited liability on credit system was two hundred years in the the principle of life insurance, as thus de- making, the rural credit society some seventyscribed by Leone Wollemborg, of Italy, whom I five; we are trying to reach the same end in regard as the greatest of modern rural econo- less time—that is all. The danger is that mists :

we will neglect the important factor of educaSuppose you have before you one hundred

tion; our people are habituated to individualsmall working farmers; they all possess the

ism ; the great task will be to show them how qualities of honesty, industry, and labor ca- they may work together as groups, with limpacity; this is their only capital. Now, a capi- ited common liability, and yet retain their talist having a hundred such men before him personal freedom of business conduct. 'The might with safety, under certain conditions, process will be slow and doubtless beset with make them a loan of 50 francs each. The con.

much blundering, but I confidently believe ditions with which the capitalist has to reckon

we will make much faster progress than the are these : Of these one hundred men, some will

Europeans made. The Federal Farm Loan certainly be afflicted with sickness, death, or lack of employment. It is a well-known fact

Act is designed to establish standards of that some of these men will certainly suffer

agricultural land value and to give deliberate from these causes, but it is impossible to say

official appraisal of land securities. It will which man it will be-whether the tenth, fif. economize the process of land-borrowing by tieth, or hundredth man. It is impossible, in bringing the borrower and the lender closer short, to foretell which individual of the group together. It will require the several States will be incapacitated and thus rendered incapa- to revise, simplify, and standardize their land ble of repaying his loan. But one thing is cer

registration statutes. Most important of all, tain: it will not be the whole group-only a

each borrower, in becoming a member of a certain proportion. Past experience indicates that out of one hundred two individuals are

local association in which he owns stock, likely to be incapable of repaying their loan,

becomes thereby a lender as well as a borwhile the others will be able to meet their

As a lender he will have a personal obligations. Now, in order to meet the liability, interest in making safe the loans of his assothe group must undertake to become responsi- ciation by seeing to it that the land is not ble for the two members who are likely to be appraised too highly, that the loan is used for unable to pay; they must become, in short, productive and not for speculative purposes, severally and collectively responsible for the and that the land behind the loan is contotal loan made to the group. There will thus

served and intelligently cultivated. The imbe ninety-eight men to repay the loan made to

portance of this dual relation of the borrower the one hundred. They will thus be able to

and the lender is clearly set forth by Wollemassume responsibility for a loan of 49 francs each instead of 50, for they will have to assume

borg as follows: responsibility for the two per cent who will be It is a well-known fact that public opinion is unable to pay, and, by making themselves col- nearly always inclined to side with the weak as lectively responsible for the loan, they will be against the strong, and as, rightly or wrongly, able to make it for 49 francs multiplied by 100. the debtor is generally considered the weaker It is thus seen that the mathematical formula party, he usually has public opinion on his side. on which these banks are able to secure their But in the case of the rural bank the situation capital is nothing more than an application of is reversed. The heads of families in the village the same principle which governs insurance. constitute the membership of the rural bank, Therefore this principle of unlimited liability

and, as they are all interested in seeing that the is the first principle underlying the rural banks. loans for which they are severally and col.

lectively responsible are paid, public opinion in Both systems were stimulated by Govern

this case is on the side of the creditor and not mental aid in money, credit, or other favor, of the debtor.

rower.

If there are those who fear that the Fed- our toll-taking ways by taking as much as we eral system will put private money-lenders could and giving only what we must, and and mortgage companies out of business, meantime have drunk the wine of prosperity they are reminded that the total capitalization without fairly considering the sweat or the of the system will not exceed $9,000,000; wage of the man who treads the winepress the bond-issuing limit will be twenty times alone. that, or $180,000,000; outstanding farm There is in this observation nothing of the mortgages in the United States amount to delusion of making men prosperous by law or nearly $4,000,000,000. The Federal system, of creating security values by fiat of governtherefore, can do little more than set the ment. The poor and the landless we will pace for private capital to follow, as has been have with us always, but when it comes to the case throughout Europe. Assuming the point that the average man of industry that the States by State legislation will multi- cannot prosper it is time for the Nation to ply such organized resources tenfold, there study the portents. Show me a prosperous will remain ample opportunity for private in- farm-owner, and I will show you a thoughtitiative and enterprise.

ful, patriotic citizen who will cheerfully give But, after all, is this a National problem ? his time, his talents, and his life, as occasion Is its solution a Governmental duty ? In the may require, for his country and its free sense that government is only a policeman, institutions. Show me a despairing tenantry: the answer is, No." But I think we have and I will show you a powder magazine got beyond that narrow conception. Farm

Farm- inviting explosion by any spark of agitation ing is feeding and clothing the Nation. that may fly from the forge of hammering Surely that is a National concern. But to industry. say that is to state only a small part of the The period of the Republic's greatest problem. It is sociological and political as well achievements in social welfare, in general as economic. Thirty-seven per cent of the comfort, in sane statesmanship, in spiritual American farmers are tenants ; in my State, elevation, in genuine culture-in all the real Texas, the percentage is more than fifty, and and endearing things of life--was the period I think the percentage is as much in several when a majority of our people were homeof the Western States. Between 1900 and owning and prosperous country folk. The 1910 the ratio of tenants to farm-owners in- American farmer was then a country gentlecreased sixteen per cent. Presently the farm- man, from whose loins came our greatest owners will be a minority. Those who have statesmen, warriors, philosophers, preachers, not will outnumber those who have. Are

The farmer nowadays is derided there fears of Socialism? Of communism? as a “jay or cajoled as a simpleton. As Of revolution in property rights ? Let us be- we speak in the language of the street and ware of a majority of voters who despair of the newspaper paragraph, so we think in our acquiring homes or who have lost the home- hearts. To a considerable degree we cause stead sentiment. I could name States with things to be what we think them to be. It a preponderating industrial population con- is time to face about, to begin thinking of gested in seething centers. I could name farming as man's earliest and noblest vocacountries where landlordism and tenantry tion, and of the country as the garden which evolve aristocracy and serfdom. To name the Lord commanded Adam to“ keep and to either is but to recall civil strife or political dress," which may be properly interpreted as desperadoism or both. It is sheer conceit for to conserve and to beautify. Thus we may us to assume that we can defy the teachings cause it again to become what it should be, of history and the passions of human kind. what it was ordained to be-man's natural Friction kindles fire; discontent foments abiding-place and the means of sustenance to upheaval. The farmers know that they are which cities in their proper relation are only creating most of the Nation's wealth ; they market-places for the exchange of commodiare accumulating but little of it. How- ties, and to which manufacture, transportaever much of the fault may be theirs, much tion, industry, and commerce are but the useof it is due to the neglect of the body politic ful servants. But sentimentalizing will not and the body economic, to the mass of us work the reform. Rhapsodizing will not who have given no proper thought to the materialize its blessings. Country life will means whereby we live, but have pursued revive when we make agriculture pay.

and poets.

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THE READER'S VIEW

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LAW SCHOOLS IN CHINA

We are anxious to let other schools and I should like respectfully to call your attention organizations learn of our methods of handling to an incorrect statement that appears in The school problems, so we have arranged a chart Outlook for March 15, 1916. On page 601, in explaining the working system of the various in the course of an article on The Compara- bureaus and a report of the work actually done. tive Law School of Saochow University at For instance, the Charity Bureau has clothed, Shanghai, China,” you say:

fed, and furnished fuel to forty-eight families “This law school for Chinese is unique in during the past five months. We should be many ways. It is the first and only professional glad to send this on request. school of law in China."

Portland, Oregon.

Don T. ORPUT. The Pei-Yang University of Tientsin, China, which from the very beginning has had a law

AN ANCIENT HERESY REVIVED department, was organized in 1895. Graduates of the University are to be found in positions

I was both surprised and shocked by your of importance in various parts of the country.

article “What Did Jesus Christ Think of Himof the graduates in law, one of whom the

self?” What our Saviour thought of himself University is particularly proud is Dr. Wang

is fully expressed in these words, “Except ye Ch'ung.hui, who is a member of the Faculty of

believe that I AM ye shall die in your sins." the institution that forms the subject of your

This is the term that Jehovah used to Moses, article--the Law School of Saochow University.

“ Tell them I AM hath sent thee!" These The Law Department of the Pei-Yang Uni

two quotations exhibit the clear teaching of versity offers a four years' course of instruction.

God's Holy Word from its beginning to the Among the subjects included in the course are

end of the Apocalypse. In the closing of the constitutional law, administrative law, criminal

Old Testament it is written, “Jehovah, whom law, civil law, commercial law, international

ye seek, shall suddenly come to his temple." law, English law, Roman law, political economy,

Jesus said, “ Destroy this temple, and in three and finance. The students are trained for pro

days I will raise it up,” absolutely proving what fessional careers.

the Bible everywhere teaches—"I Jehovah am The present law faculty includes the following

thy Saviour and Redeemer, and besides me gentlemen : Messrs. R. T. Evans, A.B., LL.B.

there is no God !" Read Isaiah xliii, 10, 11, “ Be(Harvard); G. J. Thompson, A.B., LL.B. (Har.

fore me there was no God formed, neither shall vard); H. Y. Feng, A.B., J.D. (University of

there be after me. I, even I, am Jehovah, and Chicago); and three Chinese professors in addi- besides me there is no saviour," which thortion to Dr. Feng.

oughly proves, if language can prove anything, Among those who have held positions on the

that the Council of Nice, which originated the law faculty in the past are Messrs. E. P. Allen gross error of two separate persons, each of (now practicing law in Tientsin), W. A. Seavey,

whom was God and Lord, and consummated the J. A. Crane (now of the George Washington

enormous falsity at Byzantium a quarter of a University), l. L. Sharfman-all Americans- century later by adding another divine person, and Mr. T. L. Chao, A.B., LL.B. (Harvard),

and which is now called the Nicene Creed, is who is now President of the University.

totally without foundation in the Bible, as it has It may be mentioned in passing that there is never been in the rational mind! Jesus Christ a law department at the Peking University.

has “ALL POWER in heaven and on earth.” Both the Pei.Yang University and the Peking

No other being has any except from him ; he University are Government institutions.

was “God manifest in the flesh," and is the first TIEN LUD CHAO,

and the last, “the beginning and the ending, Pei-Yang University,

President. Tientsin, China.

who was and is—THE ALMIGHTY."

WILLIAM W. HULSE. AN INTERESTING AND NOVEL SCHOOL [Your view is a revival of a doctrine known ACTIVITY

in historical theology as the Monophysite Washington High School, in Portland, Oregon, heresy. The denial that Jesus was a true man for the past year has been perfecting a Junior and subject to the limitations of finité humanity Chamber of Commerce to promote the general has never found acceptance by the majority of activities of the school. This organization is Christian believers, not only because it seems now on a practical and successful working basis. to them inconsistent with the simple narratives Our constructive work has greatly interested of his human life in the four Gospels, but besuch local organizations as the Portland Cham- cause its acceptance would make it impossible ber of Commerce, Realty Board, and Rotary for us to obey his command, “ Follow me," and Club, who have made it possible for us to co- would make unthinkable the universal aspiration operate with them in various undertakings. This, of his followers to become Christlike.-THE of course, has very materially helped our work. EDITORS.]

" People call the Negroes 'triflin','” writes a subscriber, “but I have a colored maid who puts to shame the procrastinating, unpunctual, fashionable white lady.' She comes

to my house at seven o'clock for her hard day's work ; and she is at my door just on the striking of the clock. The other day she told me she was going to a dance--for she is comparatively young. I thought, “She will surely be late the next morning. But she wasn't; and she afterwards told me that the dance lasted till 5 A.M., and she had only time to go home and change her dance dress for her working garb. But when the clock struck seven, she was at my door. Can you beat that?"

A letter from England says that the new time schedule adopted in May, by which the clocks were set forward one hour, was productive of some amusing situations. “My laundress came at 6:30, an hour early,” says the writer ; "the butcher came an hour late. He said, “The time that was good enough for my father is good enough for me. I was invited to tea; I arrived an hour early, as my hostess had not changed her clock. The Protestant church adopted the new schedule at once ; the Catholic church held to the old. But after a little no doubt things will adjust themselves and we shall all have that extra hour of daylight."

This joke, credited in an exchange to the "Meggendorfer Blaetter," must be from an ante-bellum issue. Nowadays nobody in Germany spills milk: " Peter (sent for the milk): "Oh, mercy, I've drunk too much of it! What shall we do?' Small Brother: ‘Easy. We'll drop the jug.'

Among the “summer schools " whose announcements appear in the papers there is one that will make even the unstudious student take notice. It is that of a “ Summer School of Flying” to be held at Hempstead, Long Island. What an appeal to the youth who is weary of books!

Official figures from the British Embassy, says “ Shipping Illustrated," show that up to the first of May neutral nations had lost 121 ships sunk by submarines. In the list appears the name of only one American ship-the Leelanaw. Norway lost 62 vessels, Denmark 24, Sweden 20, Holland 7, Greece 5, and Spain 4.

" New York, New Jersey, and several other States,” according to “Rider and Driver," "have starteri a movement that is rapidly be. coming general for the provision of strips on the sides of the mo or bighways suitable for horse-drawn vehicles.” The idea is to have a roadway in the center not less than fifteen feet wide for automobiles, and a section on each side not less than six feet in width for horses. The motor cars can then spin along their part

of the road and give a fair chance to the slower horse-drawn vehicles on the side.

Referring to the German East African campaign, the London weekly “ Times" prints this curious despatch : “Owing to transport difficulties rations were at one time reduced to a cup of rice and a piece of sugar-cane. Our cattle have now been successfully protected, and a campaign is being waged against giraffes, which have been destroying our telegraphs by scratching their necks on the wire." Not content with inviting extermination by big-game hunters, the foolish giraffes now incur the enmity of industry. The wires will undoubtedly prove the fittest to survive this contest.

The feelings of newspaper men who have to tackle the spelling of foreign geographical names during these troubled times are indicated in the following stanzas from "The Wail of a CopyReader" in the Philadelphia “Bulletin :" “ I have learned to locate Sdolbunov; when stories

mention Szizz, I do not need to hunt a map; I know right where it is. Cettinje doesn't puzzle me, I'm wise to Medvinik And all those weird localities where consonants are

thick, But that can't help me any now; to-day I've got to settle Disputes about Tolacatalplan and Popocatepetl. Przemysi was an easy one when once I'd learned to read The name without the consonants I found I didn't need. Mahhalades and Kalabak, Prilip and Velvendos Were just as soft as any names I ever came across. But that avails me nothing now; to-day I've got to show The same familiarity with all of Mexico."

Ezra Meeker, eighty-four years old, is crossing the continent in a “schoonermobile,” a motor car built on the lines of an old-fashioned prairie schooner. It contains bedding, a cook stove, à dining-table, and a hunting outfit. He has one companion, a younger man, and is repeating, it is said, a journey he once took in an ox cart.

" It is wrong to go into the water for a short time and come out and rest on the warm sand in the hot sun," says J. H. P. Brown in “Modern Swimming." "If you desire a sun bath, take it either before or after your swim.” The alternate chilling and roasting practice of the sea-beach bather is declared by this swimming instructor to be enervating and productive of diseases of the heart, circulation, tic.

Changes in social habits are strikingly illustrated in a book entitled “ Pittsburgh: A Sketch of Its Early Social Life," by C. W. Dahlinger. In early days, it says, “whisky was the indispensable emblem of hospitality and the accompaniment of labor in every pursuit, the stimulant in joy and the solace in grief. It was kept on the counter of every store and in the corner cupboard of every well-to-co family." And today the movement for prohibition is almost National in its scope.

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