Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1897-06-12
CREDIT BANKS.
CAN BE MADE TO GREATLY BENEFIT
AGRICULTURAL COMMUNITIES.


stores-with Credit Banks They Could
Borrow at Low Rates of Interestingly
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. FL, 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 a trial of the system there
outlined.
A recent editorial showed some of the
benefits of the Scotch credit banks which
loan small amounts 10 borrowers with
out collateral, but who can give at least
two good sureties. By this means ca
-pable and trustw orthy young man can
obtain a few hunGred dollars, at mod
crate rate of interest, with which to
stock farm which he has just bought.
He does not have to pay interest on
dollar more than he actually uses and
at any time can return amy part OF what
is borrowed and stop interest on he part
returned. Dunning Macleod, great au
thority upon banking, says that this sys-
tenn, introduced years ago, gave Scot
fish agriculture Il 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 tie use of this form
of credit has been more helpful to Scot
Il y L
would have been.
The Agriculturist then described the
special benefits OF the branch banks of
Scotland and Canada Ten Scotch banks
have l, 600 branches. Each little town
where there is an agent OF one of these
ten banks has practically the same bank
ing privil Scs as though the headquar-
tiers of t-c bank We're in the town,
whereas the American towns facilities
are confine,irto the little bank located
in its mics, 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 i'll The Agri-
culturist:
1.-The agricultural credit bank de-
scribed i'll our previous article, - our
own very successful cooperative Luild-
ing and loan associations, might also es-
tablish branches CT agencies. Thus one
society could have Il representative in
every town or hamlet in a county or
group of counties, bringing it's advan-
tages home to depositors and borrowers
every where. In this way. even III a
sparsely settled farming country. a CO.
han tU ryat
enough business to be soundly success
full The agricultural credit banks de-
scribed i'll the editorial referred to en-
able the honest poor 10 cooperate in
other matters. The testimony OF hun
dreGs 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 anu improved the
whole moral and material condition of
their members. The need is certai- ly
urgent for similar effort at self hell in
very many farming communities in this
as well as among workers in
other occupations. In these times, when
the margin of profit is SO close in farm
ing, as in other business, it is all the
more necessary for farmers to lie able to
conduct their affairs with the utmost
economy, for which purpose capital at
rates OF interest is ali impera-
tive necessity.
Whatever opinions are entertained
the standard CT values, there
should be unanimity III an ClIcrt to per-
feet a sound plan of cooperative bank i
ing that will enable farmers TO help
How great this need is Can
hardly be exaggerated Taking the
United States as whole. we dOubt If
of our farmers use banks or
are within convenient reach of banking
Without it they cannot
employ credit in the true sense Yet
nine tenths of the volume of business
by other people is done with
credit instruments But the average
farmer is able to use only the credit Of
fered by the crossroads store, which
'milks' him to the tune CT 10 to 40 per
cent by taking his stuff in trade at far
below market price. charging big profits
On what the farmer buys, and on top of
this exacting exofrbitant interest
mo legitimate business can stand
this sort of accommodation, certainly
not agriculture. The evil exists whether