Arizona republican., 1913-06-17

America which could not afford to subscribe a comparatively large cash capital and. If necessary, payments on the stock could be made on the install ment plan. Even Raiffeisen realized the need of some fund of ready cash and required his societies to build up cash reserve out of the profits of the transactions.
 The first question to arise in con sidering the adaptability of such insti- tutions 10 the United States is, Would the American farmers be willing to pledge their last cent as security for someone else's debts ?" The answer of ninety out of every hundred peo- pie to this question would probab bly be They would not" But is there such great difference between the Ger man farmers, In fact between all the farmers of every country of Europe and the American farmers? Then why are the European farmers will ing to pledge their possessions to these societies?
 The answer to this question Is found In the safeguards placed around the expenditure of the money borrowed by the cooperative credit societies. Ihey have been doing business a the same stand now for over fifty years ana the facts are today that the losses or these institutions have been far low CT even than the losses of the commer- clal banks No depositor placing his money in a Raiffeisen bank has ever lost cent. Think of that record for fifty years. There have been only nineteen cases of bankruptcy in six teen years In this system of 17,OOO banks. There have been over fifty times as many bankruptcies in the same number of commercial credit institutions in that time. The day when the American farmer wants to keep his money at home has passed. He is willing to put 1t in a commer- cial bank. Well these societies are far safer than such banks according to statistics. Why should he fear loss from them.
 It Is interesting to consider all of the restrictions placed about the use of borrowed money by these farm CTS banks. In the first place each bank is allowed to include only mem bers who are elected by their fellows on the basis of trustw Right there you begin one of these banks with a picked body of men-picked for dependa biIity. The the bank must COnllIl0 US OpeTdllOIlS 10 a small ISTTl- tory so that every member knows and sees a good deal of the doings of every other member. If member has suddenly developed an extravagant streak or begins to drink or let his farm run down at the heels he is hauled up in a minute-made to pay back every cent he has borrowed and Isn't allowed to borrow any more until he has mended his ways and regained the confidence of the ether members. Whenever a member asks for a loan he generally has to state for what purpose he wants 10 spend it and it has to ba for a sensible object or the loan will not be forthcoming. Also every borrower from the society (and only members can borrow) must fur nish two endorsers for his note when he gets a loan. Thus the borrower not only has the whole society inter ested in the return of his money but these two sureties as well and he may rest assured that th15e two men will watch him closely, for if he squanders the societies. money they will be held responsible. Lastly. as the societies never aim to make much of profit,