The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-09-15
System of Rural Banks
That May Be Estab-
lishedin Virginia.
COOPERATION BY
I THE MEN WHOTOII
Rural COOPERATIVE Credit and
How 1t Works in Continental
|. .FEurope and Great Britain.
The Story Is Told That
Virginians May Take
Heed and Initiate.


me system OF rural co-onera,tve
oleolt which has been established IN
e.'"ahy IN the organization of rural
md popular banks has been taken nm
IA some modified form OF Great Bri,aIn
hha the leading agricultural and com
IN, ga counties OF Europe. The
lroolem. In other words. Of securing
much needed credit facilities for
farmers has been solved and the hos,
results OF European experience NAV
be adopted In Virginia ana other
southern States There is no reason
why. With the small agricultural com
immunity as the unit a system OF rural
TANKS cannot hc Organized which
could be brought together into coun-
~ associations with a head bank or
central institution So Richmond 10 act
as clearing house for the counties
'and represent the ORGANIZATION In It's
broader relations with tho usual State
and national banks. credit facilities.
which are now unavailable In Tho
form Of capital for cultivating. mar
Nesting and marketing crops. could
thus be secured by the collective ac-
ion % tile farmers In addition TO
adding 10 5ield per acre and incrcas-
Ing the net returns % tho farmers.
land which Is now vacant could be
through, into q state OF cultivation
ana the agricultural resources ~ tho
state fully eNu!oitee Agricultural or
sauizailons and state agencies should
apply themselves to the problem Of
working out system OF rural banks
which VIII hc suitable FOR the needs
OF Virginia farmers
The systems ~ Rural or Ra!f-
feisen and the Popular OF the
ctuize-Deli~. banks which have
'o"n spco.ssfui!v operated in Cor
many during the past half century
'olamns The admirable ideas en-
bodice in these two systems were
quickly recognized by other coun-
tries and the German ORGANIZATIONS
became the models al over Europe
fo- establishing asrloultural credit By
means OF Cooperation.
Farm Finance In Auatria.
In Austria both the Ra!ne,ser and
tho schulze- Delitzsch systems have
been adopted as means of giving per-
sonal credit 70 the agricultural pop
uiation. The RaiNeiscn banks are.
however in relation to agriculture,
much the more important
~ FIRST the co-operative credit So
oieties developed slowly and up 70
1860 only hftcer had been formed At
ter this they began TO be formed more
rapidly. reaching the number OF si3
In 1872 Then again followed period
rising to 1868 In 1855 At this period.
however. the Raineisen system began
10 be promoted, and the cooperative
credit societies increase drapidly In
number AZ the end OF 1905 they had
reached 1886; In 1903 they had risen
to lO.os7. and in 1910 TO lose3
In 1910 there was one RaiHeisen OF
rural bank for every <.ois Of the pop
ulat.on The total number OF mem
hers in this system. according to the
last statistics obtainable. was $725 600,
the amount OF loans outstanding more
than SIS. 200 600. and the amount of
'heposits slll.0O0.0Oo. The working
capital OF the banks is formed by the
shares. the savings deposits and the
loans which the banks obtain from
The central banks The RaiNeisen
banks have ben very successful in at
tracing savings deposits In Bohemia
alone the sums deposited by boys and
servants occupied in agriculture
amounted in 1908 to sl.Sh7,o0o.
AS regards the popular or Schul2e-
Delitzsch system the most recent
statistics show a total number OF -
1913 in Austria with Il membership of.
l1.47o0o0. The aggregate capital OF
these agricultural banks was s3l. 500
00o. with working capital OF $50
coo 600 deposits OF $5l7.o0o.ooo ana
loans outstanding amounting TO s356-
900. 900 These figures afford a con-
ccption OF the enormous business done
in the aggregate By these small
country institutions.
Conditions In Italy and France.
In italy both forms OF the German
rural banks have been adopted Rural
banks were first advocated In italy
in 1880. but :: vas only in 1883 that
Wollemborg. after series Of lectures
and publications. succeeded in found
ing the first rural bank at LorcgEln.
in the province OF Padua with thirty
members. In 1854 other banks were
founded IN parts OF Nenctia. The
banks formed by Wollembore and his
associates we're unscctarian In char
aoter but from 1892 onward many
banks We're formed as a result of the
sectarlan character These have
steadily increased in number and now
form the largest group of rural banks
in Italy. In fact. out OF $500 rural
banks about 1900 are sectarian. The
Catholic banks are founded chiefly in
Venetia, In Bergamasco. in Emilia ann
in Sicily.
since 1905 no official statistics have
been published but the National Fed
Grafton of italian Rural Banks, which
has its headquarters at Rome. has
compiled a list OF rural banks and
agricultural cooperative credit socic-
tics In existence on December 81. 1911.
from which It appears that there were
then 1855. OF which about one-third
were unsectarian and the remainder
Catholic.
For their sphere OF operations the
rural banks restrict themselves 10
commune, to n portion OF n commune,
,or TO a parish.
| AS rule. the rural banks have no
- [c,--4I-...1 -. c,----.-l 49, 49,