The Tucumcari news and Tucumcari times. [volume] (Tucumcari, N.M.) 1907-1921, 1913-06-20
COOPERATION LOWERS LOAN
Rairelsen Banks Of Germany ~
Merely Groups Of Farm Neigh
pors GSplsnation Of system.

bors ESplsnation Of system
Interest In tho Operative farm
koau systems " EurOp" h sometimes
leAsoncd ~ tho belief that the sub.
pect Ia II technical one, difficult 10
understand The tact VI the matter Is
hat the systems abroad. which con.
gross Is Investigating and about
which so much IL being written. are
30 simple 40 ~ BE- easily understood
by all .'' 'o"a homestead 1hS
R Z Germany are noth.
iuE u .,ss than groups of farm
n~eiEhburs who get togetber, agree "
pool their credit resources without
limit and 50 Jointly borrow money
which the association In turn lends u
,ts members NJ they need Il. A sim.
PIE and more cOuciso explanation Of
Au workings Oi this systcin, which
he American farmers B too Inclined
o believe Is complicated. Is given
- writer IN a recent number VI
rars' Magazine, as follows.
Each member VI the new banking
.ompaAy sigus 4 pl'dgc OF his entire
rsourcos for the bank debts when
~ ~subacribes TOT his shares. Under
,crmun laws th,y must have Il mini.
nuiU share capital VI ten marks
8" ~ per member The average
ul all Germany ls nearly twenty
marks per member and that Ii the
amount our Wcs'phuliau arner put
20. earn an ,guai share until the ~ VI
hem nII th' ru, IN This particu
az valley uN, contributed sac
ach TO maxi. q lotaI banking capital
Of 3ias
They a'n their articles OF incorpUra.
PROCESS and in "a few days their char.
Dr Is issued SOW thoy are 'ull.
'"iErd ]bhuEcra. entitled 70 deal In
credit Just lIR" the bankers IA the
tiles with thceo exceptions They
may lend only to their ~ members.
Rho must be their IA ncIghboTs. and
hey may lend only tor productive pur.
poses which must oc statcd In the ap
,licatlon FOR cach loan
They elect officers. all from their
ryu membership and all without sal
aries except the cashier For that OF.
Ino me, pick one Hhosc farm IL near
.h. center ~ tho district. for there Is
10 banking house 10 be- built OF rent
81 Do back uoW IN tn" cashiers
house Is N, banking office. and his
.tiary of ten or twelve marks 4 month
overs tho rent.
%o~ tho applications Tor loans come
% many times me AMOUNT Of the
new banks capita. Where IL the
money 60 come rom Out OF hiding
some OF IL. FOR As soun as Inc new
bank their o"u bank II open for
1uslu"-s N" thriftier members un.
cover 'h,'r iIttlr boards and deposit
hem % draw interest and b" loaned
% heir nelghbur. But even these de
Yoslts DO bot prOyide funds for all the
would De hOrruw"rs Very well, the
..W '}airntsru bank gets the rest Of
h" money p needs IL tie open money
market r'rh' a' IA" bank, IN" best
Nd he biggest bank IN the nearest
" ~ TO .Ly town 10 Germany Is
here 20 bank ~ f, banker anywhere
l. N" world nho wouldn't lend "
he limit NJ puHs. be demands. On the
security ~ "a note backed - the com
ofnod guar nt,- of D." farmers ~ an
'utiro agricultural community. every
one ~ them pl~dR.ug All his Individual
rrsuurcrs FOR the G,t's 81, the group?
Cooperation ls 'hu ,uuudAtiOn on
vhlch the iStif"iScn banks are based
PRESIDENT wilson proposes q thorough
Investigation 10 see II me system can
1e praCticed AS SUCCESSFULLY here a.
n Europe In Germany he RtiTelsen
banks average only about S44U Of
paid ~ capita aud ~ members each.
Jul the l1,JlT Of them rNisting ,u 1910
rad over $500 ouO 600 Of working capt.
al Win which thcy made $500, 90.
no loans, the ay"rHEu rate Of interest
being ~ ISr cen a. against 80 per
rnt which he average American
.rln"r pays on nh Oaus once II 10
understood that III system Is simple
uuct u, ~, nhI"''ion heretofore
lrgrd against ~" adoption % The plan
% America "'. disappear
MANY ADVANTAGES nc A Gil n