The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1912-08-30
COOPERATIVE CREDIT sysrgM
IN BELGIUM.

IN BELGIUM.
Washington. august 24-Ministe
iLarz Anderson has completed the in
Yestigation Of the cooperative credi
systems Of Belgium which be under
took in connection with Presiden
Taft's attempt to establish oo-opera
tive credit in this country for thl
benefit OF the American farmer
The first attempt made in Belgium
TO relieve the farmers from the burden
of high interest rates was essentially
a governmental undertaking. Ii Is in
Iteresting TO note. however, that the
cooperative idea as developed in Ger.
many was lated adopted in Belgium
I and has largely supplanted the plan
adopted by the Belgian government.
at least 50 far as the smaller land
owners are concerned.
By law. in 1854. the General Savings
Bank was authorized to make loans to
farmers and to societies OF farmers.
AS guaranty for these loans small
corporate bodies we're formed, known
as "oomptOirs sgricoles. which guar
anteed the loans TO the General Saw
ings Bank aud for this service re-
ceived q small commission. As the
pia2 worked out. these guaraRtors
found 4 both more profitable and safer
10 act as s9reties for the larger land
owners The smaller farmers could
not offer as good security and the CON-
mission paid to the '.comptoirs
agricoles- on such a loan as was re-
Quired By a small farmer did not make
the game worth the candle. Conse-
in the first twenty-five years
after this form OF loan had been au-
BY Law. only about fifteen
-cOmpt0irs agricoies" we're formed in
eli Belgium OF the three thousand
and odd loans guaranteed by these
-eomptoirs agrieolesF at the end Of
1908. only a fraction on q hundred
we're for amounts less than $3.50
which shows thar the small farmers
received little real benefit fron this
scheme
Realizing this, the Able Mellaerts
set about TO adapt the Raiffeisen sys-
tenn Of Belgian conditions. He estab-
lished his first rural cooperative bank
in 1882 b. 1910 six hundred and
of these banks had been
established This shows the immense
growth Of the co-operative-credit idea
IN Belgium Except that by law these
cooperative banks or societies in Bel
sium are required to raise a founda-
ion capital to start with and are not
allowed to hold their reserve funds as
there is little difference be-
ween the Belgian societies and the
iaiEeisen banks of Germany. The so
.ieties in Belgium, as in Germany. are
erved by central cooperative banks.
n Belgium these central banks supeR
Use the management and audit the
looks of the rural cooperative banks.
hey also guarantee loans made to
be rural banks by the General Savings
tank. In 1894 law was passed set
Ing aside 100000 francs Of the funds
I the General Savings Bank which
'as TO be loaned to the rural banks at
be set rate Of SA per cent. In order
, enjoy the benefit of this law rural {
aak has 20 become a member ii a Ii
entral cooperative bank and has to '
ave the central banks guaranty for ?
he loan. The central bank receives "
commission of one-twelffh of 1 per S
ent OF the interest charged as pay I,
tent for this surety. These central c
Cooperative banks are formed among n
le rural banks, each rural bank sub n
,ribing for share Of stock valued all n
3 and assuming liability for the Gen. s.
AZ banks Indebtedness to the sum 2
$3.50. The rural bank receives a Il
It dividend Of 8 per cent on its stock ii
the central bank. n
Complete statistics of the business
'ne By the cooperative societies OF m
elgium are not obtainable. but the Ii
tai loans made in a year amount TO g
'out million dollars and they carry cS
'posits totaiing probably two mil T
ms. which, in country the size OF al
algium, shows a healthy growth for in
e cooperative idea in that country. rc
is
Death of Mrs. Keyes. sE