The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1897-03-10
tCREDIT BANKS.
CAN BE MADE TO GREATLY BENEFIT
AGRICULTURAL COMMUNITIES.

The American Agriculturist Explains How
Farmers Are 'Milked" by Crossroadi
stores-With Credit Banks They Coult
Borrow at Low Rates of Interest-They ey
Would Then Be Free to Buy In the
| Cheapest and Sell In the Dearest Market
The American Agriculturist, one Of
| the leading farm journals of this coun-
try, has been running series Of excel
lent editorials Oh the subject of credit
banks for the benefit of farmers. One Of
the first, in the issue Of Nov. 81, 1896,
discussed the agricultural credit banks
Of England. 1t attracted considerable at.
tention, and the Grange and Farmers
Alliance in several states are seriously
considering 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 at least
two good sureties. By this means ca
pablo and trustworthy young man can
obtain few hundred dollars, at mod
crate rate of interest, with which to
stock a farm which he has just bought.
He does not have to pay interest on a
dollar more than he actually uses and
at 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-
TEN, introduced years ago, gave Scot
tish agriculture a prodigious stimulus,
while to it also he attributes the mar
velous development of manufactures
and other industries In Scotland in 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 Agriculturist then described the
special benefits of the branch banks of
Scotland and Canada. Ten Scotch banks
have 1000 branches Each little town
where there is an agent of one Of these
ten banks has practically the same bank
ing privileges as though the headquar-
tiers Of the bank were In the town, |
whereas the American towns facilities
are confined to the little bank located
In its midst, or, more likely, in a larger
town, village or city 10 or 20 miles
away, for it is often 80 and sometimes
100 miles from points in the south and
west to the nearest bank.
We quote the following from one of
the more recent editorials in The Agri-
culturist:
''The agricultural credit bank de-
scribed in our previous article, or our
own very successful cooperative build
ing and loan associations, might also es-
tablish branches OF agencies. Thus one
society could have representative in
every town or hamlet in county or
group of counties, bringing its advan-
tages home to depositors and borrowers
everywhere. In this way, even in a
sparsely settled farming country. CO.
operative banking society could get
enough business to be soundly success
full. The agricultural credit banks de-
scribed in the editorial referred to en-
able the honest poor to cooperate in
other matters. The testimony Of hun
dreds 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. The need is certainly
urgent for similar effort at self help in
very many farming communities in this
country as well as among workers i'll
other occupations. In these times, when
the margin of profit is SO close in farm /
ing, as i'll other business, it is all the I
more necessary for farmers to be able to
conduct their affairs with tho utmost
economy, for which purpose capital at
reasonable rates of interest is an tmpera-
tive necessity.
Whatever opinions are entertained {
the standard of values, there I
should be unaninity in an effort to per-
feet q sound plan Of cooperative bank
ing that will enable farmers to help
How great this need is can
hardly be exaggerated. Taking the :
United States as whole, we doubt il :
ne-tenth of our farmers use banks or +
are within convenient reach of banking C.
Without it they cannot t
Employ credit in the true sense. Yet
nine tenths Of the vclume Of business /
by other people is done with o
,rcdit Instruments. But the average S
'armer is able to use only the credit Of
,ered by the crossroads store, which
milks' him to the tune of Is to DO per
,ent by taking his stuff in trade at far =
below market price, charging big profits ]
III what the farmer buys, and on top of t
his exacting exorbitant interest. (
mo legitimate business can stand n
his sort of accommodation, certainly k
lot agriculture. The evil exists whether S
,rices are high Or low. currency plenty :,
II scarce. The deeper one delves into i
his matter the palmer it appears that,
whatever is done about monetary stand
rds, better banking accommodations F
hat is, better facilities for the usc Of q
redit instruments, such as checks, d
RATS, etc. are vital to the farmers W
Welfare Nor can he need he OF will he "
ny more for these facilities than do {
hose in other business. " d d
A Good Example.
The action of the silver Republicans