The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-09-13
THEY HELPED THEMSELVES

One occasionally finds In the con-
sular reports something of value, in
formation that informs and suggests.
Such a one is that of the commercial
agent at Plauen, Germany, giving the
details Of the organization and work
ing OF the Saxon Landwirthschaft
lichen Creditvereins, which is an adam
associations Of the cities 1t was the
outgrowth Of the need of loans of
money by farmers and the frio ton
that always attends these transactions
with money lenders. 1t occurred to
these Saxon farmers that, instead of
depositing their savings in local banks
to be by them loaned out to other
farmers who stood in need of money,
they might make cooperative associa-
tons Of their own and be their own
money power" The earlier associa-
lions went through the usual expe-
rience resulting from incapacity and
dishonesty, but there were gradually
evolved practical, trustworthy and
very beneficial organizations, operat-
Ing, however, under governmental
supervision somewhat similar to that
exercised over our banks. The report
gives the details Of the organizations.
their rules for the safe conduct of the
business, the loans made, with their
varying terms, and the conditions Of
membership.
An owner of an estate who is Of age
and Of good character is eligible to
membership. He must pay an entrance
fee, own not less than 100 marks of the
stock, but cannot hold more than 1,5O0
-four marks to the dollar). He shares
in the profits and liabilities. He is en-
titled to loan proportioned to his
stock, secured by real estate, the loan
being from twothirds to three-fourths
of the value Of the security The value
may be that given in the tax lists.
but If that Is not satisfactory, the
board Of appraisement make a yalua
ton. Time loans are made for six and
twelve months, but the mortgage loans
run for specified periods, and are not
payable before the term. If the Dor
rover default in payment of interest.
the rate after default is made l per
cent day, and a delay Of two weeks
authorizes the foreclosure Of the mort
gage.
The agent says that "the cry for
cheap money that is sounding over the
West and South is the same that went
up from the German land owner and
farmer, and they were only relieved by
mutual cooperation and the formation
of the present credit associations.
They did not think of appealing to
their government to help them, but
went to work to devise methods of
helping themselves. How sorely our
Western farmers need some such self
help and whence comes their abhor-
renee of the money power" is re-
vealed in letter from the correspond
ent of the New York Evening Post,
who has been visiting the Northwest
and reporting the actual Industrial and
political conditions as he finds them.
He found the source of complaint, the
just cause of it, not in the money pow
er Of Wall street, but among the local
money sharks. One gets from his ac-
count a glimpse of the conditions that
have bred this demand for cheap money
among Western farmers. Circum-
stances. he says, happened to throw
the writer into circle of country
bankers in eastern South Dakota Con-
versation flowed without restraint and
consisted largely in an exchange Of ex-
periences. Legal rates." one Of them
said, did not bother them" They
had a system Of commissions, ac-
commodation fees. bonuses and re-
bates of one kind and another, that
run the thing up to where man can
make a living out of It," Asked how
high they run the thing" up, one
said that he never got more than Sc
per cent, and don't have a great deal
of trouble in getting that" Another