The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-10-03

OF these are creameries, a large mum
Der cooperative banks or credit
associations. Others are poul-
try societies, pork packing establish
ments. etc. The result has been to put
an entirely new face on Irish condi-
tons; to put heart and nope into the
people; to develop new enought-a
new and unique rural civilization.
Agricultural Credits.
In view OF the interest excited in
America In recent years IN credit
banks as a means of obtaining cheap
er money for the average farmer. we
were particularly Interested in the
operation of these cooperative banks
or credit associations. Those are
found mainly among the poorest OF the
poor. in sections where it would be
hard to find an individual who would
DO entitled to credit at any bank.
They are simply associations of farm
ers OF the highest character-for they
have no credit except for integrity
who unite their credit and forrow from
the congested districts board, which
Is branch of the government for
the settlement of the land question in
the congested rural districts OF Ire
land. They borrow money at per
cent, and loan 1t out to themselves at
4 per cent for productive purposes
only, and subject to supervision by a
committee of tie association.
The two features that characterize
these credit associations are unlimit.
ed liability and supervision. Each
member is liable for the debts of the
association; and committee of the
association determines whether the
proposed borrower wishes to borrow
for productive purposes. sees to 1t that
he purchases wisely, and that he pro-
eeeds properly with the animal or the
thing purchased with the borrowed
money. For example, If it is proposed
termines whether he needs COW.
then sees that he makes a good pur-
chase, and then that he cares for the
COW properly.
After a cooperative bank or credit
association shows tina. I. conducts its
business wisely, 1t can borrow from
local banks, generally at per cent,
and loan to members at per cent.
A suit case would probably hold all
the books and papers that properly be-
long to one Of these credit associa-
tions or banks: but they have been
one of the greatest value to persons
for whom they were organized, name
", those who have no other credit,
but who sincerely desire to help them
selves, and who have character and
integrity back of them.
The example of the Irish Agricultur-
al Organization society is being fol-
lowed by the English Agricultural
society. modelled after IT
and conducted on the same plan. This
Is encouraged by the English board
Of agriculture. From circular on
credit banks issued by that board, we
quote.
"A credit bank Is cooperative so
riety through which persons In
small way of business may obtain ad-
vances of money for userul purposes
II reasonable rate Of interest.
: A credit bank is not philanthropic
Institution, but society based ;na
conducted strictly upon business prin-
,iples. The distinctive features of a
credit bank are: "a 1t is co-opera-
i've, its keynote being self-help. (2)
It is local, its members living within |
!, small area and being well known to
me another A credit bank !
an lend only to Its own members, |
Ind its success will depend upon its
admitting as members only those |
yhose industry, honesty and integrity
ire beyond question. A credit |
,ank of this type must necessarily be
conducted upon the principle of I'M
limited liability OF its members for
he money raised by the society. :
It is just the security of such /
Unlimited liability which enables the I
society to borrow money without /
rcuble on advantageous terms"
There are between four and five
thousand of these societies in Ger
many. and the circular states that 1T
s said that no depositor or other cred !
Tor has lost farthing since the move
nent was started, in 1s49. In Ireland, |
N almost equal immunity from loss is
.Iaimed by the Irish Agricultural |
society, which has about /
90 affiliated credit banks; and the