The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1912-08-22

supervision over the societies through
the Ministry of Finance.
Although instituted as late as 1875
| the movement has spread in Russia fl
include 10000 farmers societies with
an average membership in each So
ciety of nearly 500 The network of
societies covers practically the entire
Immense area of the Russian empire
Widespread interest is taken in the
movement both by the Russian govern
ment and by the peasants, and the
government is at the present time con
| sidering further elaboration of the
scheme
In studying the Russian co-opera-
tive credit system from the viewpoint
| of the American farmer, Ambassador
Guild finds that naturally the great
difference obtaining between condi-
tions in the United States and in Rus
STA, in regard to the amount of land
farmed by individuals, the system of
land tenure, the wealth of the farming
class, and in the general facility for
borrowing money. makes it impossible
for this country to secure much benefit
from a study of the Russian system be-
yond its general principles.
For example, the average loan re-
quired by the farmer in Russia does
not exceed $50, and is generally en-
ployed to purchase some article nee
essary at the moment, such as an agri-
cultural implement or a horse, the
loan being repaid by the Russian farm
er Immediately after the harvest. OF
course, the American farmer, who
works a much larger acreage would
usually need more money and longer
time. He would require his loan, not
so much for the moments exigency. as
for the gradual development of his
property.
In brief, Ambassador Guild reports
the Russian system to be an institu-
ton of cooperative loan societies
among the farmers. conducted under
governmental patronage and superyis-
ion, by which the farmer, at no cost to
himself, is given the benefit of loans
from his society on long time and easy
terms, and, at the same time, is per
mitted to share in his society's profits.
The loan societies are of two classes
the loan savings associations and the
societies of small credit. They are both
cooperative, and the aim of each is to
lend small amounts to the farmers
through governmental assistance. The
difference between the two classes of
societies is that the members of the
loan savings associations are Obliged
to make deposits of a small amount in
order to form a reserve capital for
their society, while members of the So
cieties of small credit do not partici-
pate personally in the formation Of
cieties are adapted to the poorer and
more sparsely settled communities.
The management of all the socie-
ties is placed under the control of the
Ministry of Finance and is directly
supervised by department of the
State Bank. When group of twent!
or more individuals wishes to form
a cooperative loan society, a petition
to that effect is presented to the gov
eminent A government inspector
then makes a personal investigation of
the responsibility of the signers Of
the petition and of the value of their
land. Upon his recommendation the
government grants the society loan
of one to three thousand rubles $500
to $1,000 for period of thirteen
years, at an interest of per cent,
payable annually. This loan ser;es
as the foundation capital of the so
ciety. For its working capital the
State Bank is authorized by the GOV
eminent to lend money to the society
upon application The amount of the
loan from the State Bank depends
upon the number of members in the
society, their aggregate wealth. etc,
but is not restricted to any one
amount, and generally varies from
between $1,000 to $500 and $4,000
to $4,000
The State Bank loan is at the same
rate of interest as the government
| loan e, > per cent-but is made
for short time only, usually for
twelve months. Besides the founda-
ton capital from the government and
the loans from the State Bank. the
societies may obtain other loans from
| banks or individuals, usually at from
to 10 per cent interest. Savings de
posits are received by the societies
The average society begins business
with total capital-that is. totA
foundation and working capital of
from $4,000 to $4,000. 1t is then in a
position to make loans to its mem
bers, who are responsible to the SO
ciety.
These loans are OF three kinds
% Those used for current expenses
for a term of not more than one
year; ca those used for the pur-