Arizona republican., 1913-05-24

ways. Now they have taken 1t up in
 education. in purchasing and selling Itheir produce.
 Slowly but surely the principle of
 cooperation is strengthening the po- sition of the Italian farmer. The fact
 must not be lost sight of that they are progressing and that their progress is healthy and steady and based upon
 thrift. The lesson learned by the American Commissioners in Italy was
 a lesson in progress. It showed the
 power of cooperation to increase the
 ambition of the Italian farmers, to ce- veIop business judgment from their
 native intelligence, to capitalize and ! encourage their thrift. It demon
 strated that CO., operation, far from
 shrinking the individuality of the farmers. develops a keener competi- 1 ton and places a premium upon trust worthiness and ressiveness.
 Their studies in Italy have also inn pressed the mem bers of the American Commission on agricultural co-opera- ton with the interest which farmers must have in Q sound currency sys- tenn. For instance, if cooperative banking system is esta bished in the United States, it will be necessary at : certain seasons of the year for these
 banks, as body. to borrow consider
 able sums of money from outside
 sources. It is proba that central
 cooperative banks would be organ
 ized, the capital for which would be subscribed by the local credit socie- ties of the farming communities. Such central cooperative banks would, in so far as possible. equalize the supply and demand between various local or ganiza tions. However. there would be certain seasons of the year, particular Iy the fall, when even the total supply Of funds at the command of all Of the cooperative banks would not be sufficient to meet the demands of the farmers. In such cases it would be necessary to seek funds from outside
 sources. It is possible that a central a agricultural bank could be organized bv the cooperative system, or else that arrangements could be made with a private bank to carry son the work for the cooperative system in the great money centers-probably in New York or Chicago. Such bank would have to bid for funds fin the open
 market, and so long as present cur rency conditions obtain. 1t would be difficult for this bank to secure: a6e- quate funds, or at least an unreason- able rate of interest V 5ould have to be paid for them. Az things are today. money rates go up in New York every fall with an absurd regularity. Of course, with the advantages of a cen- traI bank, contracting only for loans fin large. amounts, the farmers would be in better position than they are today, even though the currency sys- tenn is not reformed. But it will be much better for the farmers to have an elastic currency in addition to their banking system This would permit them 10 secure ample funds without the feverish rise In interest rates which we witness each fall ln New York.
 Several s4a eFnio CTS of the Commission are Of the mind that consideration should tbe given the plan for a farm CTS cooperative banking sygtem at the same time that the question of gen. eraI currency reform is taken up. In this way the farmers would be given much more direct interest in the question -Ofrcurrency reform than they now have. { This would be of great benefit to the banking and commer- c1al interests of the country; for it would gain for tnem Q powerful sap port. At tfe-same time a proper con- sfderation oS the credit requirements of farmers would better banking con ditions generally. Thus. the coupling of the two questions, that of currency reform and of an agricultural Credi; system. would benefit both interests