The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-06-08
GER11Atl FARrrER GATERIkIcI FE1. looS
HE CER11Alg PEAT BoGS, Mar ULF1 GE1sl1AH(Y

America which could not afford &c
subscribe a comparatively large cash
capital and, if necessary, payments or
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 VI
a cash reserve out of the profits OF
the transactions.
The first question to arise in con-
sidering the adapta bility of such insti-
tutions to the United States is, Would
the American farmers be willing &c
pledge their last cent as security for
someone slse's debts?" The answer
Of ninety out of every hundred peo-
pie to this question would probably
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.
They have been doing business at the
same stand now for over fifty years
and the facts are today that the losses
of these institutions have been far low
er even than the losses of the CONNER
cial banks. No depositor placing his
money in a Raiffeisen bank has ever
lost a cent. Think of that record
for fifty years. There have been only
nineteen cases of bankruptcy in six
teen years in this system of 1900
ha n1<S FTh fIffU
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 it in a CONNER
cia1 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
ers' banks. In the first place each
bank is allowed to include only mem
bers who are elected by their fellows
on the basis of trustworthiness. Right
there you begin one of these banks
with a picked body of men-picked for
dependability. Then the bank must
confine its operations to a small terri
tory so that every member knows
and sees a good deal of the doings of
every other member. If a 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 nainute-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 other members.
a member asks for a loan
he generally has to state for what
purpose he wants to spend it and it
has to be for 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 these two men will /
watch him closely, for If he squanders I
the societies money they will be held /
Lastly. as the societies /
never aim to make much of profit /