The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-10-28
TAFT EXPLAINS
FARMERS BANKS
Continues His Campaign for In
stitutions Like Those OF
Germany.
PREDICTS GREAT BENEFITS
Certain They Would Be of I'm
told Aid to Small
Agriculturists.
PREDICTS GREAT BENEFITS

Washington, October 27.-President
Taft continued his campaign for farm
ers' cooperative banks and agricul-
tural credits to-day by making reply
to letters that have reached the White
House intimatins that the plan would
President quoted from the report Of
Ambassador Herrick statistics showing
the business done by the RaiReisen
banks Of Germany.
THE size Of the average deposit for
these institutions is around 1870" said
the President 1.-THE average loan they
make amounts to only $50. and the
membership Of the Raiffeisen banks
averages ninety-five farmers It Is
plainly evident from these figures that
this Is not a big farmers plan. In
my letter to the Governors. the first
recommendation which made 10 for
the adoption Of a cooperative credit
in this country which will be Of great
advantage to the small farmer. II was
in the interest Of the peasant farmer
Of Europe that this plan was estab-
lished.
Soeeess IN Massachusetts.
Massachusetts already has q law
permitting the establishment Of CO.
operative societies Of this type. Cnder
this law the Nyrick Credit Union. Of
Springfield, Mass. was organized.
think. IN 1903. and In twelve months II
had los members. a capital Of %. oeo
and $4,000 Of outstanding loans.
The results obtained by the adop-
ton Of this form Of cooperative credit
in Germany speak plainly enough Of
it's usefulness. There is one bank for
every 1.s00 Of population In Germany.
The rate OF interest charged IL fire.
quently . point or two lower than In
commercial circles. vet the banks make
a profit which. IN the case Of the Raif-
feisen banks. Is all carried over ~ .
reserve fund. 30 that each year these
banks are Strengthening their position
and becoming . more important factor
in the empire. The total o. business
done annually - astounding. II Is IN
the neieh0orhood Of Ss.esN.se
The principle upon which these
hanks are conducted IL not unknown In
the United States. Our mutual life
Insurance societies. frafernal aid So
cieties and building and loan asscc.a
tkcne have met WITH good success
Four-fft % the people to-day are
depOgfftGG IN mutU8t S8VtnRS p9nks
which are orRanixed for much IN. same
purposes as the small cooperative So
c.eties OF Europe Only In the rnised
States sAe operation Of those 'nssisu-
sicp. 10 confined largely 70 ire csfies.
The cooperative society which rec
ourmend would AFFORD = mutual saw
ings institution devised particularly
20 give banking facilities 90 farmers
for small; loans on persons; creole ard
for snort time. The farmers them
selves would control the management
of these socses!es
OF course. mere legislation cannot
hiring shese societies Int being. n;
VIII require time. and most 81 ne
work vii have % ~ Done by tn
farmers shemseive. TIA; Is as 70
should Ne. for uniess IRE farmers sAe-,-
selves made the effort dosbs very
much whether the 'dea WIN ever be
successfully essaAHssed IN such Q ccus-
try ~ the Cnised states.
VseospA ~ Vssss WeeeVseso.
The reception accorded nv advocacy
~ the agricultural crcd', Sea has In
pressed Ne greatly TIE rove - the
letters watch 7 have y~ce'ved. ~ 50
many es shsw ~ I have been ssie 90
eCoasiass6 % ssesoa ts0aJ