Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1912-10-04
opICuITURAL COOPERATION
IN SWITZERLAND

,,,,ons prevailing in Switzerland an&
tho United States prevents the
-aontion of many of the actual prac-
',.os employed in that republic for
No financial assistance of the farm
i vet there is much in principle
-,;ch the American farmer, at the
,.,rt of strengthening his position
,,rough the doctrine of cooperation,
an learn from the farmer of Switzer-
IND American Minister Boutell has
rocently forwarded to the state de-
nartment a report upon this subject
,o,Iowing his investigation in connec-
zion with President Taft's effort to
..+oblish cooperative credit in the
limited States for the benefit of the
american farmer.
The farmers of Switzerland are the
backbone of the nation. The govern
ment recognizes this. 1t is to the
farmers that the country would turn
il ever it became necessary for that
confederation to defend its independ-
ence. Wisely the government has
done all in its power to aid the farm
or to stiffen the backbone of the
nation. Incidentally, however, the
farmers have taken a hand in the
question of the governments looking
TO their welfare. They have made
themselves a strong factor in the gov
ernment-that is, the cooperation
practiced by the Swiss farm ers is
largely political.
Several years ago they formed an
association-the Swiss Farmers as
bureau at Brugg. This association is
represented in the Swiss national
council, corresponding to our house
Of representatives, by many promi-
nent politicians. One of the princi-
pal purposes of this association is
more or less to fix and control the
market prices of milk and other ag-
rcultural products in the interests of
the farmers.
Similar associations have been es-
tablished in the various cantons
(states) bearing the name of Canton
al Farmers Associations, which are
members of the Swiss Farmers Asso-
citation, with the same principles and
purposes as the latter. Besides the
federal and the cantonal associations,
there exists a great number of local
(distrlct) farmers cooperative sOci-
cites which have as their purpose the
securing of cheaper prices for seeds
and fertilizers by purchasing these
articles in large quantities, which are
kept in storehouses and can be OBJ
tanned as needed from the admins
traitor of the respective local society.
The federal government can make
no loans to any of the above-men-
uoned associations or cooperative So
cleties, but it contributes annually
an amount of $4,000 francs to the
expenses of the permanent central bu-
reau of the Swiss Farmers associa-
ton.
In the various cantons provisions
are made to facilitate loans to farm
efs' In some of the cantons there ex-
St mortgage banks, which are can
'onal institutions and which are au-
'norized to make loans to farmers,
against first mortgage, up to two
tmrds of the real value of the farm
property.
Inc chief advantage secured by the
lrmer in placing a mortgage with
lne cantonal or state mortgage banks
mat he escapes the necessity of
repaying the principal of his mort
cage IN a single payment, and he is
practically relieved from the danger
VI foreclosure. The interest rate
snarged by the cantonal mortgage
OanKs Is about the same as that col
ected by other banks. For instance,
farmer wishes to raise a loan of
eio'oOO on his property. He secures
'le money from the cantonal bank
~ II per cent. He could probably
W as well for him self if he went to
private sources, but here is where the
''ntonal banks help him out. If he
"ent TO a private bank to borrow the
money at 4 II per cent for stated
-umoer OF years-iet us say 10 years
linen each year he would be re-
Su'red to pay that bank his AZ per
''n'' and the tenth year he would be
,squlred to pay back the entire $1O,-
wv Now, with the cantonal bank
70 is required to pay each year, in
lui'ion to his 4 " per cent, 1 per
wi cent as amortization After the
msl payment he owes the bank So
w less per cent. Naturally, the
0eonu year he must pay interest, not
the $4,000, but on $4,000 less |