Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1912-09-13
FARMERS IN RUSSIA
Obtain Loans Through Cooper
alive Credit System.
Ambassador Curtis Guild at st. Peters.
burg Sends to state Department
Exhaustive Report on Plan
Adopted In That Country. Z

(, Adopted In That Country.
Washington. In remote Sibe.
ria and Turkestan has the farmers CO.
operative credit system reared finan-
cial fabric to assist the peasant farm
er of the Russian cars domain. The
state department has just received
from Ambassador Curtis Guild at st.
Petersburg an exhaustive report on
the farmers cooperative credit sys-
tenn in Russia.
This Is the first of series OF re-
ports requested by President Taft
from nearly every one OF the diplo-
matte officers in Europe on this move
ment which he is striving to trans
plant to this country for the benefit Of
the American farmer.
At the present time the Russian gov
eminent has nearly forty millions OF
dollars Of government money invested
in the farmers cooperative credit sys-
TEN. How established part OF the
Russian peasants life this financial
machine is becoming is clearly shown
in the practice of the peasants to de-
post their savings with the credit So
cieties on the understanding that the
deposits will be paid out after their
death for their funeral expenses or
that they will be returned to them at
the time Of the coming Of age OF son
or the marriage OF daughter.
The cooperative movement among
Russian peasants has now developed
two distinct aims: First, to educate
the peasants. large proportion OF
whom are quite ,illiterate. along the
lines of modern farming; and, second
ly, to encourage them to save their
earnings and acquire the habit Of pro-
viding against the rainy days. The
direct aim Of the Russian government
in organizing this system was to re-
lieve the peasant from TIE necessity
of paying exorbitant and ruinous rates
of interest, imposed upon them by
their money lenders.
The movement affords further edu.
cation for the peasant since the Rus
sian government has very wisely left
the management Of the societies large
ly in the hands of the farmers them
selves, conducted through the general
meetings OF the societies, In which ev-
cry member of the society Is given
one vote. The peasant is thus given
considerable experience in financial
affairs and management The mem
bers elect a board Of directors and
council. These bodies take care OF
the executive work. They report to
the general meetings of the societies.,
at which all the members are present.
The government exercises supervision
over the societies through the minis
try OF finance.
Although instituted as late as 1885,
the movement has spread in Russia to
include ten thousand farmers socie.
ties, with an average membership IN
each society Of nearly five hundred.
The network of societies covers sprac'
tically the entire immense area OF the
Russian empire. Widespread interest
is taken in the movement both by the
Russian government and by the peas
ants, and the government Is at the
presnt time considering a further elab-
Grafton of the scheme.
In studying the Russian cooperative
credit system from the viewpoint of
the American farmer, Ambassador
Guild finds that naturally the great
difference obtaining between condi-
lions in the United States and In Rus
STA, in regard to the amount Of land
farmed by individuals, the system OF
land tenure, the wealth of the farm
ing class, and in the general facility
for borrowing money, makes 1t impos-
sible for this country to secure much
benefit from a study Of the Russian
system beyond its general principles.
For example, the average loan re-
quired by the farmer in Russia does
not exceed $50 and is generally en-
ployed to purchase some article neces-
sary at the moment, such as an agri-
cultural implement or a horse, the
loan being repaid by the Russian far
mer Immediately after the harvest. OF
course, the American farmer, who
works a much larger acreage, would
usually need more money and longer
time. He would require his loan, not
SO much for the moments exigency, as
for the gradual development CT his
property.
In brief, Ambassador Guild reports
the Russian system to be an institu-
ton of cooperative loan societies
among the farmers. conducted under
governmental patronage and supervi-
sion, by which the farmer, at no cost
to himself, is given the benefit Of
loans from his society on long time
and easy terms. and, at the same time,
is permitted to share In his society's
profits.