The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-07-24
Cars Wfsest Men Plan Means
of Development.
PEASANTS TAUGHT TO SAVE
State Department Studies Plan
and May Adopt Part.
Ambassador Curtis Guild Tells
of New Credit Plan.

farmers cooperative credit system
reared a financial fabric to assist the
peasant farmer of the Russian czars
domain. The state department has
just received from Ambassador Curtis
Guild at St. Petersburg an exhaustive
report on the 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 diplomatic Off
GERS 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 considera-
ton by the state department as the
first step in preparing a plan to fit the
. cooperative credit idea to American
conditions.
At the present time the Russian gov
eminent has nearly $40,0OO,OOO OF
cover nment money invested In the
farmers cooperative credit system,
which is perhaps the strongest testi-
moniaI of all as to the success OF the
movement among Russian farmers ana
of the great benefits winch IL is prlns-
4ng to that nation.
How established a part of the Rus
sian peasants life this financial ma
chine is becoming is clearly shown in
the practice of the peasants to deposit
their savings with the credit societies
on tn 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 son or the mar
riage of daughter.
Two Aims of Movement.
The cooperative movement among
Russian peasants has now developed
two distinct aims: First, to educate
the peasants, a large proportion OF
whom are quite iIliterate, along tbs
lines of modern farming, and, secondly,
to encourage them to save their carr
ings and acquire the habit of provid-
ing against the rainy days The direct
aim of the Russian government in or
ganizing this system was to relieve the
peasant from the necessity of paying
exorbitant and ruinous rates of inter
est, imposed upon them by their mon
ey lenders, the rates often running as
high as 6V and, in known cases, to
240 per cent. The movement affords
further education for the peasant since
the Russian government has very wise
ly left the management of the societies
largely in the hands of the farmers
themselves. conducted through the gem
eral meetings of the societies, in which
every member OF the society is given
one vote. The peasant is thus given
considerable experience in financial af-
fairs and management. The members
elect a board of directors and a coun-
ell. These bodies take care of the ex-
ecutive work. They report to the gen
eral meetings of the societies, at which
all the members are present. The gov.
eminent exercises supervision over the
societies through the ministry of
finance.
Includes 10000 Societies.
Although instituted as late as 1895
the movement has spread in Russia to
include 10000 farmers societies with
an average membership in each society
of nearly 500. The network of socie-
ties overs practically the entire inn
mense area of the Russian empire.
In studying the Russian cooperative
credit system from the Viewpoint of
the American farmer Ambassador
Guild finds that naturally the great dir
ference obtaining between conditions
IN the United States and in Russia
in regard to the amount of land farm.
ed by individuals, the system of IaDd
tenure, the wealth of the farming cIase
and in the general facility for borrow
ing money, makes it impossible for tb;s
country to gain much benefit from a
study of the Russian system bevo,d
Its general principles.
Average Farmers loan S5O
OF example, the average loan reouired
s oy the FARMER in Russia does not exceeJ
800 and is generally employed to nurc6ese
some article necessary at the poor1nt
such as an agricultural implement or -
siaT me me Ioan being repaid by the Rus
sian farmer Immediately after the par
vest Of course the American farmar
VINO works much larger acreage. vvoi1;d
time. He would require his loan. not 90
much Tor the moments exigencv &c for
tne gTaduaI development of his property.
IN Dr1ef, Ambassador Guild renorfs fhe
Russian system to be an instftution IF -
operative loan societies among the farm
Sfs, conducted under government ,atron
Axe and supervision, by which the FFor-Nl..
at no cost to himself is given fhe baracit
OF loans from his society on long time and
h
m1tted to share in his societv's r1roffite
Inc loan societies are of two cIassesNtte
loan savings associations and the societins
OF small credit. They are both coo1HarO
tive, and the aim of each is to lend snaIl
amounts to the farmers through govern
mental assistance The difference between
the two classes of societies is that the
members of the loan savings associa tiops
are opnged TO make deposits OF a small
amount IN order to form reserve caDitaI
for their society, while members IF toe
societies of small credit do not partici
society's capital The latter societies arc
adapted to the poorer and more sparseIy
settled communities
Under Ministry of Finance,
The management of all the societies is
placed under the control of the ninistry
OF finance and is directly supervised bv
a department of the state bank When
a group of twenty or more individuaJ@
wishes to form a cooperative loan society
a petition to that effect is presented to
the government. A government insnectoT
then makes personal investigation of fT1a
responsibility of the Signers of the nett
ton and of the value of their land IJpon
his recommendation the government
grants the society a loan of one thousand
to three thousand rubIes $500 TO 81 5001
for a period of thirteen years, at an in
tereSt rate OF per cent, payable annually
This loan serves as the foundation cap
ital of the society. For its working cap
itaI the state bank is authorized by the
government 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 restrict