The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-04-27
OPERATIVE FINANCE


one vote; not capltalIstic, ono share
one vote Begin business with as lit
tie as $1,000 cash paid In capital;
when capital reaches S25,o00 or more,
then the cooperative bank becomes
subject to substantially the same
legal provisions that apply to com
merclal national banks. for which
that figure is the present minimum.
This little local savings aud loan
association receives deposits from
members and non-members, and may
also borrow money from other
sources These funds, together with
the money received from the sale Of
shares. are then loaned out iu rela-
lively small amounts to the mem
bers for productive purposes only.
The borrower states in his appN-
cation what he wants the money for
and offers the endorsenen or one
ar two other members as security
The request is considered in strict
confidence by credit committee Of
three, and granted If the object seems
worthy and likely TO produce profit
such as the purchase or seed, fer
dlizera. improved live stock. etc, but
refused If for reproductive oh
tect like the payment Of an old debt
or for some luxury. The loan may
be made for from one to six months
with the understanding that the Dor
rover may pay something on &C
count and renew the balance II the
use is one that requires more time
to turn a profit
The little bank thus does business
that in petty in its nature The loans
may be anywhere from s to 500
or more. deposits from cents up--a
class Of business so small as not TO
be attractive to the commercial BANK,
The agricultural bank may even OPP
crate with almost no expense by
keeping its account with some exist
ing bank. Its total expenses may not
exceed $100 a year. only the treasurer
or manager being paid, the directors,
supervisors and credit committee do
mating their services The supervis-
ors are not only auditors, but have
oversight over the 1nanagement and
represent all the shareholders.
Thus the affair Is Il help each-other
bank. The members meet frequently.
I get better acquainted have more
confidence IN each other and in their
little help-for- self-help bank. Old
and young (even the children) become
enthusiastic about It, take pride in
saving their pennies ana small change
TO Increase their little deposits, and
each member of every family wants
TO own one or more pald-up shares.
SUCH personal interest, this co-opera-
tive spirit this service by each mem
per this development OF the coop
5c.attye Ideal # seeing how much we
can Go for the Coop" instead OF
merely how much we can get from
tail these factors or human feel
inc. personal enthusiasm, sacrifice and
service, confidence and spirituality
are vital to the hest economic sue
cess. 1t ia Christianity applied to
petty finance. supplemented by eff
cheney in managing the business.
These little societies may he anil
ated with each Other or with exist
ting banks through zone leagues, SO
that when money is abundant in one
section. and scarce in another the
situation will automatically adjust it
self
This cooperative bank makes only
current loans. 80 taat II may always
meet depositors' Withdrawals, instead
! of tying up it's current funds in per
manent mortgages, But our coop
erative bank acts as tho local agent
( for the land bank in its State Thus
/ the farmer deals with his own local
agricultural bank either as deposit
I tor. as a small borrower for current
needs or for a relatively permanent
) loan on mortgage.
/ The Cooperative Finance league
proposes to act aS Headquarters TO
which any group may apply for adj
vice and instructions for starting or
/ operating one Of these little local ag-