The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-06-10
RAJ CREDIT ASSOCIA-
TIONS IN CANADA.


OF March 70. in favor of furnishing pro-
Vinciai farmers with cheap money. 10 be
used IN developing agricultural lands has
oeen recognized by the provincial govern
ment after being indorsed by several farm
ers institutes. Last week the premier in
troduced into the legislative assembly an
important measure, believed To be the only
legislation of the kind yet attempted on
the American continent. Although new 20
This hemisphere, the system OF agricultural
credit banks or associations has been de-
Veloped with considerable success In Ger
many, Italy. France and other European
countries, and has lately been started in
Great Britain and Ireland: also in the
presidency of Madras. India II is pro-
posed by this measure that the government
deal with associations only. and not with
individuals. Briefly outlined, the measure
proposes as follows:
ANY number of farmers or traders of a
community of twenty-five or more MEM
bers may form themselves into an associa-
ton, paying an entrance OF s. each and
subscribing 10 certain number of shares
the number of shares to be propor,ionate
10 the amount which a member may rea-
sonably be supposed 20 become good for in
case he IS called upon. The member
ship fees are, paid in. deposited with
the government 10 the credit of the MEM
Der and draw interest, accommodating to the
credit OF the member. The fund so formed
is not called into requsition. EXCEPT in
case of the failure or part failure Of tn.
association to pay its liabilities. In case Of
member withdrawing. he is entitled to
refund with n premium. No amount
OF the shares is necessary 10 he paid up:
they simply stand As a guaranty 10 the
government. much in the sense Of a prom
isSory note. that the member will pay the
amount Of the shares subscribed in case
of an emergency, Every share carries with
1t double liability. so that the govern
ment is thoroughly We'll protected against
risk OF loss. The association horrows
money on the aggregate value Of it's
shares. by issuing debentures al. say, or
3l2 per cent. which may be guaranteed by
the government. The association loans the
money to its members. taking into con-
sideration for security personal worth. in
dustry. and assets, real and personal.
Under this system the reproductive earn
ings of a man. together with his general
character and standing In the community
as to honesty. industry and intelligence,
will constitute part OF his general credit
much as II does in ordinary banking
circles.
The modus operandi OF the associations
Is shown fully In the model rules and
regulations submitted with the bill. There
is a managing committee. to whom al
applications for loans must be made, and
each application Is considered upon its
own merits, For instance II a man wants
money TO buy stock with or agricultural
machinery, or TO underdraiu his land or
clear or carry on any Of the ordinary oper-
ations Of his farm, he may apply TO the
managing directors, who meet once or
twice a month to consider such applica-
tons. The managing committee must sat
isfy themselves of three things 81 That
the member is personally and in character
and surety offered good security for the
amount loaned; t2l that he absolutely re-
qu.res the loan. and that the expenditure
will be beneficial and reproductive: 90 that
the money loaned will b" applied in the
most useful and economical manner The
objects for which loans may be obtained
may be indicated as follows: (a) Drainage,
which Is the subsiructure Of farming;
thl clearing Of land (c) purchase OF stock
and implements; I'd fences and building;
(et cooperative daiFyinr. etc: % any
other reproductive work or expenditure ap-
proved by the association, TIE safety of
the system consists In this fact that the
managing committee. being personally re-
sporsihle 20 all other members. will exer-
else the greatest care In regard 20 the loans
paade and being acquainted with those TO
whom money Is loaned, ear exercise =
greater care than would otherwise be- pos
sihle. In addition 10 the committee OF
management. there is a committee Of audit
consisting of six members, who may in
veSfigate the affairs % the association
and examine the books al any time. In
addition 10 this again. the affairs Of tho
association are subject 20 the scrutiny %
ths, government auditor. who may at any
time intervene and prevent an improper
working Of the system
This 3U portaut measure which does not
pas or mortgages on farms. is designed
10 help new settlers with small effects 70
secure money "a low rate % interest for
permanent improvements. According 10
The provincial secretary, the sponsor the
government ~ this measure practically
SAYS 20 the farmer.
We cannot lend you money on mort
cages. or deal with you individually. be-
cause IL 10 contrary TO the first principles
of government and liable 70 gru-s abuse
bat. Z you show yoGr confidence 81 each
other and are willing - lend your credis
20 each other and become Liable for each
other by pooling security. We are willing
% deal with you a community and lend
YOU money on communal credit"
ABRAI +. SMITH. Consul.
Victoria. 1893.