Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1897-04-22
lCREDlT BANKS.
CAN BE MADE TO GREATLY BENEFIT
AGRICULTURAL COMMUNITIES.

|
FARMERS Are "Mnkcd" by Crossroads
storcs-wnh Credit Ranks They Could
| borrow at Low Rates OF Interest They
WOULD Then lie FREQ 60 Buy In the
Tho American Agriculturist, one of
the leading farm Journals of this coun-
try, has been running series of excel.
lent editorials ON tho subject Of credit
banks for the benefit of farmers, One of
| the first i'll tho ISSUE Of Nov. 81, 1896,
discussed tho agricultural credit banks
of England. ltattracted considerable at
tenuon, and tho Grange and Farmers
| Alliance III several states are seriously
considering trial of tho system there
outlined.
| 4 recent editorial showed some Of tho
| benefits of the Scotch credit banks which
| loan small amounts to borrowers with
out collateral, hut who can give ut least
| two good suNtios by this means n ca.
pablo and trustworthy young man eau
obtain few hundred dollars, at n mod
erato rate Of interest with which To
stock farm which he has just bought,
He does net have to pay interest on q
dollar moro than he actually uses and
ut any timo can return any part Of what
| is borrowed and stop interest On tho part
returned, Dunning Macleod, a great aa,
thority upon banking, says that this sys-
tenn, introduced years ago, gave Scot
fish agriculture u rroaigious stimulus,
while to it also he attributes the mar
Vicious development of manufactures
and other industries in Scotland IN the
face VI adverse natural conditions, Mac.
Iced declares Tint the use of this form
Of credit has hcou more helpful to Scot
land that the richest gold or silvcrminos
would have been,
Tho AEricumrist then described tho
| special benefits &C tho branch hunks of
Scotland and Canada Ten Scotch banks
have |, 600 branches, Each littlo town
whore there is M agent ot ono of these
ten banks has practically the Same bank
ing privileges us though the hcadquar-
ters Of the bank were in tho town,
whereas the American towns facilities
aro confined 10 the little lnnk located
in its midst, or, moro likely, IN u larger
town, village or city 10 or 20 miles
away, for II IL often 90 and sometimes
100 miles from points IN tho south and
west to the nearest bank
We quote tho following from one Of
the ruru recent editorials in Tho Asri
oulturist;
"Tho agricultural credit h0nk d.
srrtbrd III our previous article, or our
own very successful cooperative build
ing ard luHn associations, might also SIS
tabli>h ranches or agencies, Thus ono
society could have n representative III
every town or hamlet IN u county or
group uf counties, bringing its alyan
tages home to dtpositorS aud borrowers
everywhere In this way, oven IN n
sparscly settled farming country, co
operative banking society could gel
enough business To lo soundly success,
full The agricultural credit banks oe-
krtihvd in tho ,ulturnl referred to On
able tho honest poor to cooperate in
} other matters The testimony Of hun
drcds cf similar institutions IN Europe
shows beyond I'LL question that these
credit societies lavo encouraged CO.
opeUtim in all its forms, stimulated
thrift and self help and improved tho
whole moral and material condition of
til, IT. momhcrl. Tho nocd IL certainly
urgent fcrsm,lar effort ut self help IN
very many farming cCmmluitics IN tins
country Gs VOL rs among workers ~
Other ccapatiGs, In these times, when
the adipin Of profit IL 81 cloHe III farm
ing. ~ in Other business, II y MI the
more lcap yaty fer farmers to be nble to
conduct their affairs with the utmost
oconumy, for which purpose cnp'iai NJ
reasonable rates Of interest IL I'M impera-
tive necessity.
"Whateycr opinions ore entertained
concerning the standard Of values, there
, should be unanimity IN M effort To per-
, feet 4 sound plan Il cooperative bank
ing that viii enable farmers TO help
thorH, Ives. How great this need IL can
hardly he exaggerated, Taking the
United States ns Il whole, we doubt II
onc.tcnth Of our farmers use hanks or
urc WITHIN convenient reach uf banking
accommodation Without ii they cannot
employ credit in the true sense. Yet
nine.tCnths nf the volume Of business
transacted ~ other people IL done with
credit Instruments But the average
farmer il able to use only the credit of
iercd by the crossroads store, which
mills him to the tune a l5 10 10 per
cent by taking his stuff IN trade mt fur
below market price charging big profits
on what the farmer buys, aud on top OF
this Xacting cxorbitant interest.
mo legitimate business can stand
this sort Of Accommodation, certainly
not agriculture Thccyil exists whether
I prices are high or low, currency plenty
or scarce The deeper one dclyos into
this matter the palmer it appears that,
whatever III done about monetary stand
nrda, better banking communications
that Is, better facilities for the use OF
credit instruments, such as checks,
drafts, etc. ARE vital to the farmers
welfare. Nor can be, need he on viii he
pay more for these facilities than do
those I'm other business -