New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1912-11-23

IF any number of farmers want
to start cooperative banks with
the int ntion Of loaning money at
lower rates of interest than ex-
listing banks charge, why should
there lie any need of action by
the President or Congress to
make il possible for them to do
500 President Taft has suddenly
discovered that such banks are
necessary and hastens to suggest
that some governmental action be
taken 10 authorize their creation.
This is nothing more nor less
than an admission that existing
laws are keeping out Of the bank.
ing business, persons who would
otherwise embark therein. Such
laws must tend to create bank
ing monopoly and become a sup
port of a money trust. Nothing
more is needed to enable farmers
or any other class to establish CO.
operative banks, if such banks are
wanted, than the unconditional
repeal Of all restrictive legisla-
ton. But that method would
evidently not please some sene-
ficiaries of restricted competition.
Perhaps this explains why Taft
does not recommend it, or pos
sibly he has become so accustomed
to needless legal restrictions that
he can not conceive the notion of
dispensing with it.
The Raiffeisen banks Of Germ
any were formed without govern
ment aid and f1ourished for many
years without it. There is a
Raiffeisen guild in successful ope-
ration in this country at Arden,
Delaware. It gets along without
any public aid or supervision
whatever. Possibly because it is
a small institution and its field
of operation necessarily restrict
ed so that it does not make its
competition felt by ordinary
banks. is why no one has yet dug
up some useless law to suppress
IL.
Cooperative banks under gov
ernnent supervision would be O
strong weapon for vested inter-
ests. This is the experience Of
France with the Credit Foncier.
French reformers find it contin-
ually necessary to allay needless
and senseless scares, which agents
of predatory interests throw into !,
the small stockholders of this in
whenever they wish to !.
secure hearing for needed re-
forms. Any one who has been
through the campaign of 1896 in
this country can we'll imagine
what use Mark Hanna. would have
made of an institution like that.
Under the plan proposed by
Taft, these banks would only be
permitted to loan to land owners.
They would consequently be no
help at all to the 81 per cent. oil
farmers who own no
land, al d but little if any to the
81 per cent who own under mort
gage. An advantage would thus
be given TO the AZ per cent of un-
incumbered owners over their al
ready less fortunate co-workers.
It would become harder than be-
lore for tenants to become owners
Tor the new special privilege thus
conferred on landowners would
1ec essarily cause land values to
Increase. Increased laxs1 values
mean increased rents, which II
Iurely not an alluring prospect
or tenants. i
The Raiffeisen guild at Arden,
lot having been formed in ac-
,ordance with President Taft's
IDEAS, does not limit its loans to
landowners. If it did, it would !,
70 very little business for the
and in that community is not
'wned individually, Every one
f its loans is made to tease
lolder and the security is not
and. brt labor products. Such
method would clearly suit Meth
r President Taft nor the interests
which have guided the policy OF
81 ks4v~