Arizona republican., 1912-07-22
Operation of It Among the Peasant Farmers in the Supposedly Benight- ed Regions of Siberia and Turkestan.
THE GOVERNMENT
 LOANED $40,000,0 900
The Objects in View Are Double, the Education of Peasants and Encourage ment to Them to Save Their Earnings.

WASHINGTON. July 21.-Even in remote Siberia and Turkestan has the farmers cooperative credit sys- tenn reared a financial fabric to as sist the peasant farmer of the Rus sian czar's domain The state depart ment has just received from Am bassador Curtis Guild at St. Peters burg an exhaustive report on tine farmers cooperative credit system in Russia.
 This is the first of a series of re ports requested by President Taft from nearly every one of the diplo- matic officers in Europe on this movement which he is striving to transplant to this country for the benefit of the American farmer. Ambassador Guilds report has been taken under consideration by the state department as the first step in preparing a plan to fit the CO., operative credit idea to American conditions.
 At the present time the Russian government has nearly forty millions of dollars of government invested in the farmers cooperative credit sys- tenn. which is perhaps the strongest testimonial of all as to the success Of the movement among Russian farmers and of the great benefits which it is bringing to that nation.
 How established a part of the Russian peasants life this financial machine is becoming is clearly shown in the practice of the peasants to deposit their savings with the credit societies on the understanding that the deposits will be paid out after their death for their funeral expenses or that they will be returned to them at the time of the coming of age of a son or the marriage of d daughter.
 The cooperative movement among Russian peasants has now developed two distinct aims: First. to educate the peasants. 8 large proportion of whom are quite illiterate, along the lines of modern farming; and, sec ondly. to encourage them to save their earnings and acquire the habit of providing against the rainy days. The direct aim of the Russian gov ernment in organizing this system was to relieve the peasant from the necessity of paying eXorbitant and ruinous rates of interest, imposed upon them by their money lenders, the rates often running as high as 50 and, in known. to 240 per cent The movement affords further edu- cation for the peasant since the Rus sian government has very wisely left the management of the societies largely in the hands of the farmers themselves. conducted through the general meetings of the societies, III which every member of the society ig given one vote. The peasant IS thus given considerable experience Tn financial affairs and management The members elect a board of d. rectors and a council. These bodies take care of the executive work They report to the general meetings of the societies, at which all the members are present. The govern ment exercises supervision over the societies through the ministry oi finance.
 Although instituted as late as 1895 the movement has spread in Russia to include 10.00e farmers societies with an average membership in each society of nearly 800 The network of societies covers practically the entire immense area of the Russian empire. Widespread interest is taker in the movement both by the Rus sian government and by the peas ants. and the government is at the present time considering a further elaboration of the scheme.
 In studying the Russian coopera tive credit system from the view point of the American farmer, Am bassador Guild finds that naturally the great difference obtaining be tween conditions in the United States and in Russia. in regard to thu amount of land farmed by individ uals, the system of land tenure, tn wealth of the farming class, and il the general facility for borrowing money, makes it impossible for thi country to secure much benefit iron study of the Russian system be yond it's general principles.
 For example. the average loan re ouired by the farmer in Russia doe not exceed $50 and is generally em ployed to purchase some article nee essar at the moment, such as a agricultural implement or a horse the loan being repaid by the Russia farmer immediately after the har vest. Of course, the American far mer who works a much larger acre age, would usually need more none
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