The Providence news. (Providence [R.I.]) 1891-1906, 1895-08-26
COOPERATIVE BANKING.
A New Rhode Island Enterprise-"Old
Colony Co-Operative Bank.n
EDITOR OF THE NEWS

To THE EDITOR OF The NEWS.
SlR-The Old Colony Co operative Bank Is
the name of a new bank or building loan asso-
citation just organized in this city, with head
quarters in the Industrial Trust Building
with the following list OF officers
ID. Russell Brown, president; Henry X.
Barker, first vice president; Arnold B. Chace,
second vice. president; John q. Wyman. secre
tary; Charles d. Bentley, general manager /;
Albert A. Baker, general counsel; Joseph H.
Sphinx. title attorney. Executive committee,
Henry X. barker, chairman, Henry Il. Root
George Il. Baker, Charles IL George. Elisha H.
Rhodes: board of trustees ID. Russell Brown
Henry II. Barker, Henry Il. Root, James ii.
Chace, John z. Campbell. William 5. Granger.
Charles Ill. George, Arnold Is. Chace. Edward
L. Freeman, Charles H. Child, George #.
Leete, Joseph K. Sphinx, Herbert B. Ellis, Will
lam l.. Colley Andrew X. Loneley Charles ID.
Bentley, George 4. Baker, Albert A. Baker
Myron Fish, Gardiner G. Sims, John Z. Wy
man, Elisha IL. Rhodes.
Under various names. as building loan or
savings fund, and loan or cooperative saw
ings and loan associations, cooperative banks,
and the like, cooperation in industry, which
has been applied with more or less success in
the field Of production and distribution, is
lattcrly becoming powerful factor in the
accumulation OF the earnings 81 the masses
and the betterment Of their financial and
So rapidly and yet quietly have these co.
operative banking institutions grown mp and
multiplied among Us that few people, even
among the generally well informed, have any
conception OF what they have grown to and
What they are doing for the wage earning
classes ana people OF small incomes. It rs 10
tho exhaustive and admirable report this
subject by Mr.. Carroll ID. Wright, United
States commissioner Of labor. published last
year, that we chiefly indebted for our
general statistica, information relating to CO.
operative banking in this country.
students In economic science, no less than
casual readers, were surprised TO learn that
there were, even in 1885, when these compila-
tions were made, nearly G0OJ OF these associa.
tions, extending over every state IN the un3On
save one, comprising about l,750,OOJ share
holders and having upward OF saD.Oc,OO
assets: inaeed. that the money invested in
cooperative banks In several Of the Middle
and Western states exceeded the aggregate
capital OF all tho other banks In those states
combined. And those people. and there are
many such. who looked upon cooperative
banks az well-mcant and perhaps honestly
conducted institutions, but essentially 80 un-
stable that they would likely 80 down with n
crash whom tha first severe financial storm
swept over the land, were even more sur-
priscd 90 learn from this governmental report
that no banking, railroad, manufacturing or
commercial Institutions In this country bad
stood up 80 sturdily and woathcrcd the late
storm with 50 little damage as haa these samc
Institutions which in tines OF panic aud
monetary distress have shown such Inherent
strength AZ Mr.. Wright vouchcs for, respond.
ing 20 the needs Of depositors and keeping
open doors and mceting promptly every
legitimate Crsnand, certainly deserve the Mt
most conf lcncr of the people.
Co-0perative banks supplement the service of
savings banks Ia tho promotion Uf thrift, while
they supply a want which these admirable m
stitutlons do not OIL. savings banks, as every
one knows. are banks Of deposit
Their obligations are payable ON demand.
Hence they must make their Investments with
reference 40 ready CODNcrtiblnty rather than
the largest possihlc returns for thoir patrons.
The rev srso ~ true Of cooperative banks. In
THIS Stste, the statutory law, passed at the
last January session, requires that these
banks shall take for every loan made n non
negotiable note or bond. secured by first
mortgage on real es'afe' -uch security a.
not readily convertible but Or - the very hcst
in the market. unless we except government
bonds, and. moreover. h constantly cnhan ctd
bv monthly payments rom borrowers, thus
obyiatlng the risk ~ loss frolp depreciation