Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-04-04

pasture for a couple of cows and can
make profit on them, but has not
the ready cash to buy them. Instead
of mtortgaging his farm or paying ex-
orEitant interest and expenses on a
chattle mortgage he procures a loan
from the society, probably in the
form of an acceptance of his interest,"
bearing note given In payment for
the cows. AS the members all live in
the same neighborhood and know
each other, and all have their credit
pledged to the society, all cooperate
in seeing that those cows are proper
ly cared for and kept in condition to
repay the loan and interest. To take
another. case, several members may
want to buy fertilizer. The society
itself buys and delivers the fertilizer,
taking the interest bearing notes of
the members in payment, and recei9-
ing the principal when the crop is
harvested. Banks and merchants as
well as the societies and their mem
bers all derive an advantage from
this arrangement The merchants
have to carry less credit. The banks
find a business that otherwise might
not exist for them, on account Of its
subdivision into transactions too
small to he profitable; assembled into
profitable aggregates ti"..&e
Societies invited. -. =
For much the same reasons that it
has proved great benefit to unite
individuals into societies for credit
and trading transactions, it has been
found almost a business necessity in
have developed to unite the societies
themselves into central societies or
unions. The German societies are.
all thus Combined, into
two or three great unions, while in
some other countries there is union
for every district BY this means the
collective credit of the societies is
their transactions with
regular banks assisted, and their OPP
Grafton rendered more economical IT.
is worth noting here that in the 81
nancial crises of the past thirty years
the cooperative credit societies of Eu-
rope have suffered less than the
great financial institutions, there has
been less fluctuation in their deposits
and interest rates, and they have prov
ed the most desirable creditors-when
they needed funds in the money mar
ket. 1=# T.. -.... =" t.
Local Conditions Favorable
The bill before the legislature fol-
lows closely the tried and tested
laws of other countries. The law is
In no way experimental except as it
may meet conditions in Hawaii that
do not exist in countries where coop
erative credit has been put in opera
ton. However, the conditions in Ha-
wall seem. favorable rather than the.
reverse. Our Portuguese are already
successful benefit societies
more closely, perhaps,
than any other organizations in the
territory, in spirit and theory of man
agement, the proposed cooperative
credit unions. Among Hawaiians,
Orientals and other nationalities huis
for other purposes have succeeded.
The cooperative credit union is merely
a hui to raise money and disburse it
collectively fol. reproduetive-that is
rofitable-purposes The small
farmers of the territory certainly need
the aid and advantages that come
from wise cooperative organization.
While it is hardly probable or desir-
able that under the proposed law the
territory should suddenly blossom out
all over with cooperative societies
and the organization of such societies
would require and should be preceded
by some educational work to prevent
initial mistakes-the example of the
few successful societies that might be
established. and their &C
CURED experience, would, We have
good reason to believe, be followed by