The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1897-03-10
CREDIT BANKS.
CAN BE MADE TO GREATLY BENEFIT
AGRICULTURAL COMMUNITIES.

The American Agricultural Explains How
Farmers Are 'Miiked' by Crossroads
Stores with Credit Hanks They Could
borrow at Low Rates of Interest-They
Would Then he Free to buy In the
Cheapest aud Sell In the Dearest Market.
The American Agriculturist, one of
the leading farm journals of this coun-
try, has been running II series of excel
lent editorials ON the subject of credit
banks for the benefit of farmers. One OF
the first, in the issue of Nov. II, 1896,
discussed tho agricultural credit banks
of England, II attracted considerable at,
tention, and the Grange and Farmers
Alliance i'll several states are seriously
considering II trial of the system there
outlined.
A recent editorial showed some of the
| benefits of the Scotch credit banks which
loan small amounts to borrowers with
out collateral, but who can give mt least
two good sureties. BY this means ca
pahle and trustworthy young man can
obtain n few hundred dollars, ut mod
crate rate of interest, with which to
stock farm which he has just bought.
He does not have to pay interest ON n
dollar more than he actually USES and
ut any time can return any part of what
Is borrowed and stop interest on the part
returned, Dunning Macleod. great au
thority upon banking, says that this sys
tenn, introduced years ago, gave Scot
fish agriculture prodigious stimulus,
while to it also he attributes the mar
yolous development of manufactures
and other industries i'll Scotland III the
face of adverse natural conditions. Mac.
leod declares that the use of this form
of credit has been more helpful to Scot
land that the richest gold or silver mines
would have been.
The Agrirulturist then described the
special benefits of the branch banks of
Scotland and Cannda. Ten Scotch banks
| have 600 branches Each little town
where there is an agent of one of these
ten banks has practically the same bank
ing privileges ns though the headquar
| tors OF the bank We're iii the town,
whereas the American towns facilities
nro confined to the little bank located
| in its midst. or, more lilstly, i'll larger
town, village or city 10 IN 90 miles
away, FOR 1t is often 30 and sometimes
100 miles from points i'll the south and
west To- the nearest bank
We quote the following from one of
the more recent editorials IN The Agri-
culturist;
"1hc agricultural credit bank de-
scrilod III our previous article, or our
own very successful cooperative build
ing and loan associations, might also es-
tablish branches on agencies. Thus one
society could have a representative in
every town or hamlet in county Oh
group Of counties, bringing its ndyan
tages home to depositors and borrower
everywhere. In this way, even in
sparscly settled farming country, &C
2 operative banking society could &c
! enough business to be soundly success
full The agricultural credit banks de
scribod in the editorial referred TO Ell
able tho honest poor to cooperate II
other matters The testimony of hun
drcds of similar institutions in Europe
shows beyond all question that these
credit societies have encouraged co
operation in all its forms, stimulated
thrift and self help and improved the
whole moral and material condition of
their members. Tho need Is certainly
urgent for similar effort mt self help in
very many farming communities III this
country aB well as among workers in
other occupations In these times. when
tho margin of profit is 80 close i'll farm
ing, M in other business. it is all the
moro necessary for farmers to be able to
| conduct their affairs with tho utmost
economy, for which purpose capital NJ
reasonable rates of interest is IN impera-
tive necessity.
"Whateyer opinions arc entertained
concerning the standard Of values. there
should be unauimity in an effort to per
feet sound plan OF cooperative bank
ing that will enable farmers TO help
themselves How great this need Is can
hardly be exaggerated. Taking the
United States as II whole. we doubt II
one tenth Of our farmers use banks or
nro within convenient reach of banking
accommodation. Without il they cannot
employ credit in the true sense. Yet
|
transacted by other people is done with
credit instruments. But the average
farmer is able to use only the credit Of
fercd by the crossroads store. which
'milks' him to the tune of 10 to 40 per
cent by taking his stuff i'll trade at far.
below market price, charging big profits
on what the farmer buys, and ON top OF
this cxacting exorbitant interest.
mo legitimate business can stand
this sort of accommodation, certainly
not agriculture The evil exists whether
prices are high on low, currency plenty
on scarce The deeper one delves into
this matter tho palmer it appears that,
whatever ii done about monetary stand
ards, better banking accommodations
that is, better facilities for the use OF
credit instruments. such as checks,
drafts, etc. arc vital TO the farmers
welfare Nor can he, need he OF will he
pay more for these facilities than do
those in other business. -