The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1913-10-21
RALEIGH, N. C OCT. 21, 1913

avs of the credit union must con- |
form to the means of securing funds |
II the organizers believe that suf- |
ncient deposits can be secured from |
the community to take care of the
oans or the farmers, then the CO.
operative credit union would take the
form or savings and loan asSocia-
ion and naturally would follow some
what after the Raifeissen model.
II the organizers believe that the
deposits secured from the neighbor-
noOd would only be sufficient to take
care or part Of the loans required
by the farmers and the balance OF
the money needed is to come from
rediscounting the paper of the union,
the form OF organization would prob
ably follow somewhat after the Hun
Garian Odel.
If the organizers did not take into
consideration at all the deposits from
the nelghDorhOod and expected to re-
iy entirely upon rediScOunting the
paper Of the credit union in order to
raise funds TO meet the demands for
loans by the farmers. then the form
would probably follow somewhat
after the French model
No matter what cooperation from
the local credit union dopted, the
| foundation principle would be the
same-that is, that amy man Of good
|character and industrious habits may
secure financial assistance if needed
for productive purposes, and that this
necessary credit shall lie advanced to
him at as low rate as the rate
|charged by banks to any other citi-
Izens OF the State. Many Of these
banks may find it advisable to incor-
Iporate more specific features Of our
town building and loan associations.
Relations to Existing Banks.
AS any cooperative system of local
try and honesty for stored1up prop
erty as security, it Is respectfully sub
mitted that they should be organized
separate and apart from our highly
organized commercial banks. 1t is
not only possible but highly desira-
BILE that this new agency shall be con.
nected with the existing banks and
not projected against them-prOvidcd
; that the banking institutions Of our
State be willing to rediscOunt the
: paper Of the neighborhood credit
Unions on a satisfactory basis anC
thus share in the great volume Of new
business that the organization OF
these cooperative credit unions viii
be sure to create.
But If our existing banks. through
neglect, stupidity, or selfishness, TAI
I and assist in it's organization and de
velopment, then 1t will be up to ths
. farmers Of North Carolina to go i
, alone and organize a big central CO
! Operative bank to act as a mOnetar.
+ adjustment institution, a clearin:
. house for all the local credit unions
o in the State.
: Surety of Cooperative Banks Assuret
9 Under the provisions Of the pend
c ing National currency bill, such
q State central cooperative bank woul'
i have little difficulty rediscountin,
: the bulk Of the paper Of the loca
n credit union with the nearest regiona
5. bank of issue of the United States
q The power to rediScO Int agriculture
paper by order Of the Federal gov
Q ernment at a fixed rate Of interes
! granted by this currency bill ought t
n be sufficient argument to induce ou
e existing banks to make a thorOugl
y study Of this great problem and d
i all in their power to give us the yer
S great blessing Of cheap, safe, elasti
i lcredit for our North Carolina farm
e erS.
p There need be nothing startlin
II about the proposition to the banks
! rediScount, for our local ccOperativ
= credit unions. reasonable amount {
- paper (Which is secured by the carr
= ing capacity OF our pest ldIHlSIS,I II
= stead of land, buildings, stocks an
! bonds.
e Experience shows that the earnin
d capacity of farmAaS organized in &C
operative credit Unions, IS about tn
It best banking security in all the worl'
d A signed statement from Dun
Is Agency in Austria states that tn
e agency did not have any record OF
II single failure of the Raifeissen (ce
le operative) banks, and that the Systel
g was founded on such a strong col
y cervative basis that failure was prat
III tically impossible. In Germany whel
IL there are many thousand cooperatiH
e credit unions there are fTty-seFf
&c failures OF commercial hanks of o.
/ failure of the cooperative cred
unions.
In Hungary, during q recent finai
II cial crisis, all Of its al. coop Ee-a.l+
= banking institutions stood the 81 +"