Alma record. (Alma, Mich.) 1878-1928, 1897-04-02
CREDIT BANKS.
Dan Be Made to Greatly Benefit
Agricultural Communities.
The American AgricuIturist Explains
How Farmers Are "MiIked"byC Cross
roads Storcs-COuid borrow at
Low Rates of Interest.

try, has been running series OF excel
lent editorials on the subject of credit
banks for the benefit of farmers. One OF
the first, i'm the issue of November 2l,
1896, discussed the agricultural credit
banks of England. 1t attracted consid-
cradle attention, and the Grange and
Farmers alliance in several states are
seriously considering "A trial of the sys-
TEN there outlined.
A recent editorial showed some of the
benefits of the Scotch credit banks
which lean small amounts to borrowers
without collateral. but who can give at
least two good suretes. BY this means
n capable and Trustworthy young man
can obtain a few hundred dollars, al
moderate rate OF interest. with which
10 stock a farm which he has just
bought. He does not have TO pay inter-
est on a dollar more than he actually
uses and at any time can return any
part of what is borrowed and stop in
terest on the part returned. Cunning
Macleod. Il great authority upon bank
ing. says that this system, introduced
years ago. gave Scottish agriculture
prod gious stimulus, while TO il also he
cttributes the marvellous development
Of manufactures and other industries in
Scotland in the face of adverse natural
conditions. Macleod declares that the
use of this form Of credit has been more
helpful to Scotland than the richest
gold or silver mines would have
been.
.ict IHv a
sDecal benefits of the branch banks of
Scotland and Canada. Ten Scotch banks
have 900 branches. Each little town
where there is an agent of one of these
ten banks has practically the same
banking privileges as though the head
quarters 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 ten or twenty miles
away for it is often 30 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
establish branches or agencies. Thus
one society could have n representative
in every town or hamlet in a county
or group Of counties, bringing its adj
vantages home to deposjtors and Dor
1owers everywhere. In this way, even
in a sparsely settled farming country,
a cooperative banking society could get
enough business 10 be soundly sue
cessful.
"The agricultural credit banks de-
scribed i'm the editorial referred 10 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 certain
" urgent for similar effort at sef-help
in very many farming communities in
this country as well as among workers
in other occupations. In these times,
when the margin OF profit is 50 close in
farming. as in other business, ii il all
the moro necessary for farmers to be
able TO conduct their affairs with the
utmost economy. for which purpose
| capital at reasonable rates OF interest
is an imperative necessity.
"Whatevcr opinions are entertained
concerning the standard Of values, there
should Ice unanimity ia an effort TO per-
feet a sound plan e cooperative bank
ing that will enable farmers to help
themselves. How great This need is can
hardly be exaggerated. Taking the
United States as % whole, we doubt if
one-tcnth of our farmers use banks or
are within convenient reach of banking
accommodation Without it they can
not employ credit i'm the true sense.
Yet niue-tcnths of the volume Of BUSH
ness transacted by other people is done
with credit Instruments. But the aver
age farmer is able 10 use only the credit
offered by the crossroads store, which
'mills him to the tune OF - to 40 per
cent by taking his stuff i'm trade at far
below market price. charging big prof
its on what the farmer buys. and on
top of this eNacting eXorbitant in
terest.
"No legitimate business can stand
this sort Of accommodation certainly
not agriculture. The evil exists wheth-
er prices are high or low, currency
plenty or scarce. The deeper one delves
into this matter the palmer it appears
! that, whatever is done about monetary
etandards better banking accommoda-
tions-that is. better facilities for the
use OF credit Instruments, such as
checks, drafts, etc.-are vital 70 the
farmers welfare. Nor can he, need he
J or will he pay more for these facilities
than do those in other business"
Good Example.
Tho pctfon Of the silver rpruI,Iico no