The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-06-10
CREDIT ASSOCIA-
Tl0NS IN CANADA.

tae sentiment. alluded to in my report
% March u. in favor of furnishing pro
NiHciai farmers with cheap money TO b.
used IN developing agricultural lands. has
oeen recognized by the provincial govern
ment after being Endorsed by several farm
eFs institutes. Last week the premier In
troduced into the legislative assembly an
important measure, believed to be the only
legislation or the kind yet attempted on
the American continent. Although new to
TINS hemisphere, the system OF agricultural
credit banks or associations has been de-
Veioped 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
oers may form themselves into an associa-
ton. paying an entrance of s. each and
subscribing TO certain number of shares
the number OF shares TO be proportionate
10 the amount which a member may rea-
sonabiy be supposed 10 become good for In
case he Is called upon. The member
snip fees are, as paid in. deposited with
the government TO the credit OF the mefl-
Der ana draw interest, accommodating TO the
credit OF the member. The fund so formed
is not called into requisition. except in
case of the failure or part failure OF the
association TO pay its liabilities In case Of
a member Withdrawing. he Is entitled TO
q refund with premium. No amount
OF the shares is necessary to be paid I'm.
they simply stand as n guaranty to 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 snare carries with
IL double liability. SO that the govern
ment Is thoroughly we'll protected against
risk OF loss. The association borrows
money on the aggregate value Of it's
shares. by issuing debentures at say or
Sia 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 10 honesty. industry and Intelligence.
VIII constitute part OF his general credit
much as 1t does in ordinary banking
circles.
The modus operandl OF the associations
is shown fully in the model rules and
regulations submitted with the bill. There
is managing committee. TO whom all
applications for loans must be made. and
each application is considered upon tis
own merits. For instance If a man wants
money 20 buy stock with or agricultural
machinery. or to underdrain his land. or
Gear or carry on any OF the ordinary oper-
atoms OF his farm. he may apply 20 the
managing directors. who meet once or
twice month 10 consider such appnca-
tions. The managing committee must sat
isfy themselves Of three things: % That
the member is personally and In character
and surety offered good security for the
y. fnuy nod. hu ha nh Into
quires the loan. and that the expenditure
will be beneficial and reproductive: 90 that
the money loaned VIII be applied In the
most useful and economical manner. The
objects for which loans may be obtained
may be Indicated as follows: ta) Drainage
which Ia the substructure OF farming;
fhl clearing Of land tci purchase Of stock
and implements: (dl fences and buildings;
(e} cooperative dairying. etc; % any
other reproductive work or expenditure ap-
proved BY the association. The safety Of
the system consists In this fact that the
managing committee. being personally re-
spons!bIe 10 all other members will exer-
else the greatest care in regard to the loans
made. and. being acquainted with those 10
whom money ia loaned. can exercise
greater care than would otherwise be pos
slhle. In addition 10 the committee OF
management. there Is a committee OF audit
consisting Of six members. who may In
yeStigsts The affairs % the association
and examine the books 81 any time In
addition 20 this again, the affairs Of the
association are subject 10 the scrutiny Of
the governrneut auditor, who may al am,
time intervene and prevent an Improper
working OF the system"
Tits important measure which does not
pay of mortgages on farms - designed
10 help new settlers with small effects 20
secure money a low rate Of interest f0-
permanent improvements According to
the provincial secretary. tae sponsor. the
government: by this measure practically
saws TO the farmer:
We cannot lend yog money on mort
CAGES. o- deal with you individually. BE-
cause Il j. contrary 10 the first princ. p}es
OF government and liable 20 gross abuse.
bit IL you show yogr confidence In each
other and are willing - 1eSG your credts
70 eash other and become liable fer each
other by pooling security. we are wiling
t. deal with you az a community ana Eend
you money on communal credit -
AHRA5I f. SMITH, Consul.
Victoria Isfs