Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-04-01

| One of the most important events in
connection with the Southern Com
| mercial Congress now In session at
Nashville Is the conference upon rural
| finance which will be held from April
] 1 to s. under the direction Of David
Lubin, the delegate from the United
States to the International Institute OF
Agriculture at Rome, who has come to
America to attend the meeting. This
| conference will be attended by men
representing the sixteen southern
states covered by the commercial con-
gress and delegates from all parts of
the country. 1t will include commit
tees from the National Grange, the
National Farmers Congress, the De-
partment Of Agriculture. the bureau Of
commerce and labor. economists from
the leading universities Of the country.
representatives from the Nebraska
rural life commission. appointed by
the Nebraska legislature: the Trans
Mississippi Congress, the irrigation con-
gress. the dry farming congress and
other organizations interested in agri-
culture and rural social conditions.
The subject to be considered is the
establishment of q system of finance
in the United States which will meet
with the practical needs Of the farmer.
cured satisfactory results in Europe
will be carefully studied by the mem
bers Of the conference with the view
of arranging for the adoption Of SINH
lar plans in this country.
Under the present financial conditions
in the United States. If a farmer needs
a new supply of machinery. an addi-
tional animal, or supplies sufficient to
enable him to live until the time of
the returns from his harvests, he is
prices the dealers choose to charge him
or else to mortgage his farm and
thereby incur an additional burden. In
the southern states especially. because
of the crippled condition in which the
| country was left after the civil war.
1t is generally admitted that the alb
sence Of some system upon which the
farmers can obtain credit based upon
the value of their incoming crops is
one of the greatest drawbacks to the
development Of the land. If 1t can be
accomplished by the establishment Of
chain of cooperative banks through
out the country, as is believed by many
persons who have given attention to
| the subjects. one of the great benefits
hoped for as result of the study into
the rural conditions of other nations
by the International Institute Of Agricui-
ture will be gained. It Is asserted that
II the conference now In session de-
cides upon the advisability of the
finance system in this country special
commission will be appointed for this
purpose. Senator Gronna has already
introduced bill in the United States
Senate authorizing the President to ap
point such commission.
L +
Tbara are q number NJ rural finance
systems. which are in successful opera
ton. which will
Numbe of Systems be presented to
this conference by
14VVC 0uSSoSoAoA' Mr.. Lubin. The
most important is known as the Raiffei-
sen, which has been in operation in
Germany for number Of years and is
believed to be best adapted to the needs
of the farmer. although some modifica-
lions Of the German methods will doubt
less be required to meet with American
conditions.
The Raiffeisen Is a system of personal
credit The farmers Of a community
form a cooperative society and upon
the strength of their collective assets OBJ
tain loan for which they become joint
ly responsible. The loan is deposited in
ganizstion, which also acts as a deposit
bank for the savings Of it's members,
and the money is loaned to the members
for specified purposes connected with the
business of the farm at ordinary rates of
interest. In Germany these local banks
have now been federated into central
banks.
The Raiffeisen system owes its incep-
ton to Frederick William Raiffeisen, a
German burgomaster, who during the
years 1S47-4S formed associations for the
poorer inhabitants of the commune of
Wayerbusch. These organizations began
by purchasing cattle to prevent the
usury practiced in that branch of rural
commerce The members of the associa-
ton assumed joint responsibility and the
cattle were distributed among the small
farmers. who paid for them at reasonable
prices in Ave yearly installments with
| interest at low rate. From this beginning,
the association went on to service of
money loans which gave it the character
| of a loan bank. These first Raiffeisen
organizations differed from those now in
operation, because they were in a sense
a philanthropy. since the people to be
assisted did not form the membership OF
| the association, which was composed OF
those who were financially independent.
There are now over 1900 Raiffeisen
banks in operation in Germany. which
last year did a business amounting to
| 81, 6.A, 26S 9S9. This was all upon CO.