Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-10-28
OF Farmers Cooperative
Banks by Pres. Taft.
BY No Means for the Benefit
Alone Of Big Farmers.
The Plan In Germany a Success
Especially for Small Farmers.

Washington, Oct. 27.-President Taft
continued his campaign for farmers
cooperative hanks and agricultural
credits. today, by making reply to let
ters that have reached the White
House intimating that the plan would
benefit only the big farmers. The Pres
ident quoted from the report of Am
bassador Herrick statistics showing
the business done by the Raiffeisen
banks of Germany.
THE size of the average deposit for
these institutions is around $3.50" said
the President. THE average loan they
make amounts to only $50, and the
membership of the Raitfeisen banks
averages 95 farmers. 1t is plainly evil
dent from these figures that this is not
a Big farmers plan.
ION the contrary the adoption of CO.
operative credit in this country viii lie
of great advantage to the small farm
or 1t was in the interest of the peas
ent farmer of Europe that this plan
was established. Massachusetts al
ready has law permitting the estab-
lishmant of cooperative societies OF
this type Under this law. the Myrick
Credit Union of Springfield. Mass, was
organized, | think in 1909. ana IN IL
months 1t had 105 members, capita.
of $4,000 and $4,000 of outstanding
loans.
"The results obtained by the adop-
ton of this form of cooperative cred
II in Germany speak plainly enough
of its usefulness. There is one bank Tor
every 1900 of population in Germany
The rate of interest charged IS ire
ouently a point or two lower imam III
commercial circles, yet the banks ihaNe
a fair profit, which, in the case Oh
Raiffoisen Banks is all carried over as
a reserve fund so that each year THESE
hanks are strengthening their postum
and becoming a more important factor
in tic Empire The total of business
done annually is astounding. IL Is III
the neighborhood of $1,000 oo0.ooo.
.Tbe principle upon which these banks
orc conducted is not unknown In the
rrnited states our mutual life insurance
societies. fraternal aid societies ana
,,,,i,a;ng and loan associations have met
,,,i,h eood success. Four-fifths of the
savings of the people today are aepos-
tied in mutual savings banks which are
organized for much the same. purposes
as cooperative societies of Europe only
in the United States the operations OF
these institutions are confined largely TO
the cities The cooperative society
which I recommend would afford mu-
tual savings Institution devised particu-
larry to give banking facilities to farm
ers for small loans on personal credit ana
for short time. The farmers themselves
would control the management OF these
societies.
.,Of course, mere legislation cannot
bring these societies into being. 1t will
require time and most of the work Will
have to be done by the farmers them
selves. That is as 1t should be, for UNI
less the farmers themselves make the
effort ! doubt very much whether the
idea will ever be successfully establish
ed in such country as the United
states.
1.-The reception accorded my advocacy
of the agricultural credit idea has i'm
pressed me greatly. The tone of the
letters which / have received, or as
many of them as have been able to
read-all of them would force me to give
up all other workshops that the people
are seriously studying the question. 1t
is a question that requires serious study.
There are several different forms of CO.
operative credit. The small cooperative
societies of which have just spoken, for
instance, are quite different from the
mortgage and bond societies which are
designed for larger loans. for far longer
periods, and would be the means of Sc
curing the farmers the money necessary
to the permanent Improvement of their
lands.
''But where such interest is exhibited
it Is certain that study will follow and
have every hope of seeing intelligent and
wise opinions urged upon the state Legis-
latures for the adoption of the different
forms Of cooperative credit"