Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1912-11-01
Taft EXPLAINS
HIS CREDIT PLAN.
PREsiDENT, m STATEMENT, De.
MES THAT ONLY THE "eIG
PRODUCERS" WILL Benefit.
VIEW TO SMALL FARMER
Declares Scheme Has Proved Huge
Success in Germany, Where
Il Was Tested
Thoroughly.

Washington, Oct. %. = President
Taft continued his campaign for farm
ers cooperative banks and agricul
tural credits by making reply to let
tiers that have reached the Whits
House intimating that the plan would
benefit only the big farmers. The
president quoted from the report OF
Ambassador Herricks statistics, show
ing the business done by the Raiffei.
sen banks of Germany.
THE size of the average deposit
for these institutions is around 1870,
said the president. The average loan
they make amounts to only $3.50. and
the membership OF the Raiffeisen
banks averages 95 farmers. 1t is plain.
ly evident from these figures that
this is not big farmers plan. In
my letter to the governors the first
recommendation which ! made is fol
the adoption of some such form Of
cooperative credit.
ION the contrary, the adoption Of
cooperative credit in this country
will be of great advantage to the
small farmer. It was in the interest
of the peasant farmer of Europe that
this plan was established. Massachu
sets already has q law permitting
the establishment Of cooperative SO
cieties of this type. Under this Law
the Myrick Credit Union Of Spring
field, Mass, was organized, think, in
1909, and in 10 months it had 105 mem
bers, capital Of $4,000 and $4,000
OF outstanding loans.
Results Show Usefulness.
1.-The results obtained by the adop
ton of this form Of cooperative credit
in Germany speak plainly enough oil
it's usefulness. There is one bank fol
every 1000 of population in Germany
The rates Of interest charged are fire
quently a point or two lower than in
commercial circles, yet the banks
make fair profit which, in the case
of the Raiffiesen banks, is all carried
over as a reserve fund, so that each
year these banks are Strengthening
their position and becoming more
important factor in the empire. The
total of business annually is astound.
ing. 1t is in the neighborhood Of
$4,000, 100000.
Principle Known In U. 8.
1.-THE principle upon which these
banks are conducted is not unknown
in the United States. Our mutual
life insurance societies, fraternal aid
societies, and building and loan as.
sociations, have met with good sue.
cess. Four-fifths of the savings of the
people today are deposited in mutual
savings banks which are organized for
much the same purpose as the small
cooperative societies of Europe Only
in the United States the operations
Of those institutions are confined
largely to the cities. The cooperative
society, which l recommend, would
AFFORD a mutual savings institution de-
vised particularly to give banking IA
cilities to farmers for small loans
on personal credit and for short time.
The farmers themselves would con.
troll the management of these socie.
ties.
Farmers Must Do Work.
"Of course, mere legislation cannot
bring the societies into being. 1t will
require time and most Of the work
will have to be done by the farmers
themselves. That is as 1t should be-
for unless the farmers themselves
made the effort I doubt very much
whether the idea will ever be success
fully established in such q country
as the United States"