The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1912-05-08
WEDNESDAY. MAY s, 1912.
COOPERATIVE Credit
For the Farmer.


ton, realizing that West Florida must
obtain her best results through the
development of her resources. has de-
cided to work up interest In the extern
sion to fsrmers Of what Is known as
the cooperative credit system which
has been used to advantage in Euro
pean countries. 1t is the purpose Of
the Commercial Association for the
counties OF West Florida to get to-
gether, as has been explained in The
Journal before, and send a representa-
tive to Europe to study cooperative
credit.
Secretary Leland l.. Henderson at
ern Commercial Congress at Nashville
and was present when Mr.. Page out
lined the Raiffeisen system Of banks
and recommended that the system be
established in this country. Mr.. Hen
Aderson was impressed with the propo-
association when he laid the matter
before them.
The Raifreisen system, as practfced
in Germany. is based on the unlimited
liability of the members; a restricted
area of operation; and gratuitous
management. There were in Germany
in 1909 1854 OF these banks, with a
membership of 1.1ss.1S6. or an average
of 90 per bank. The average paid-up
capital per member was about five
dollars. The ownership Of share is
necessary for membership. The area
of operation of each several bank is
limited to distinct community, the
idea being that thus each member is
able to observe whether or not other
members are using the money ad-
vanced In a sensible way. The cost of
management varied from .04 to .O53
per cent, an almost insignificant per-
centage. The total business done by
these banks in 1908. according to the
Review Of Reviews. amounted to the
enormous sum OF six and one-half bill
lion marks, or about one and one half
billion dollars. Loans granted during
the year amounted to $22O,1s6.17O. AL
lowing thirty dollars the acre for pro-
ducing cotton. this was sufficient to
have provided for the planting of T.
sss,s72 acres. which, were the amount
allowed expended per acre, would have
produced at least 10000, 900 bales OF
cotton. This does not take into ac-
count the Schulze- Delitzsch CO. opera
tive banks. which did business in
1909 of three and one-quarter billion
dollars. large part OF 1t being in the
form Of loans to farmers We believe
that we are correct in saying that the
cooperative banks OF Germany loaned
TO farmers, under the most adyanta
geous conditions, enough money ir
1909 to have financed the entire cottor
crop OF the United States, and to hav,
financed 1t we'll We believe that W,
are correct in saying also that had tn,
cotton crop of this country been s,
financed the profits to farmers woul,
have been from 10 to 80 per cen
greater than they actually were. as
Stunning that the impregnable position
of the producers had not forced
higher market, in this way making til
profits even greater.
That other southern representative
at the Southern Commercial Congress
were impressed with the idea is show
by the interest the newspapers ar
taking in it. In discussing the ques
ton the Charleston News and Courie
says:
Where do these cooperative bank
get the money? What security hav
they? The best in the world, namely
the honesty and good faith OF a com
munity which, as a community,
vitality interested in seeing that ever
borrower uses his money properly. No
only are these banks able to comman
all the money they need, but they ar
rapidly building up reserves that wi
in time be sufficient to allay the nee
for borrowing at all from private cap
italists. There is no cornering G
farmers products in Germany. Tn
planter there has followed the rest {
the world in organizing intelligently.
Can the scheme be worked in thi
country Easily enough II the per
sonal jealousies and animosities
communities do not prevent. gres
unused asset is available. Germa
farmers have been quick to ava
themselves OF II. The southern farm
er ought 70 fellow the lead. Once h
can solve the problem OF finance Nj
prosperity seems assured. Surely tn
mode suggested Is worthy of seriou
consideration. Certainly coYnmunit
leaders ought to get together and stud
the plan"