The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-06-28
NEWS LETTER
FROM VIENNA


most interesting phases Of Italian
rural life have been investigated BY
the American commission ON agri-
cultural organization, cooperation
n rural credits. now travelling In
Europe to examine the various
systems In use on this side OF the
Atlantic.
At Creanona. Italy. the coranais-
siorers inspected the Peoples bank,
which is more or less the main-stay
OF the rural population. This hank
was exeeliently housed and was said
to- be in an extremely dourishing CON
aitioll. From the appearance or every
thing connected with the institution
this was easy to believe. The bank
liz not truly cooperative in principle
but is, properly speaking, a joint stock
company depending on larger COM
merctal institutions. 1t departs pare
ticularly from the cooperative idea in
SO far as the number Of votes held by
the numbers is dependent ON the
shares they possess. On the other
hand it maybe called a peoples bank
in 50 far as the object kept In mind
by the directors is not primarily to
make profits, but to ensure the better
ment of the circumstances of the local
population, who r themselves the
shareholders. It may be called a rural
bank for the reason that 1T will lend
money by preference, and at a favor
able rate. to those engaged in agri-
cultural pursuits. The director ex-
planned that the bank acted in this
way because agriculture was consider
ed the main industry on which de-
pended the welfare not only of the
neighborhood, but Of the whole ma
tion.
The bank was willing to lend on
any reasonable security, collateral,
land or endorsement, the latter practf-
cally amounting to lending on charac-
ter. The rate of interest remains al
most always below 5 per cent. and the
director secuted the idea Of any seri-
u trouble arising between the bank
and Its clients or shareholders.
The working of the Cremona bank
seems to be guaranteed to some ex-
tent by the fourishing Central Banca
di Roma, and ultimately by the APP
prevail and Watchful eye of the gov
eminent. but 1t cannot be said to be
subsidized n aided by the state. The
expenses are largely kept down by the
of the officials, most of whom
give their services either gratuitously
or at an almost nominal wage-a5 prin-
ciple regarded with suspicion by many
members of the American commission,
and stigrnatized by some as a sur
cidal policy.
One of the chief functions of this
is to make advances to facilitate
the work of the Cooperative Society
OF Local Farmers, having for it's OBJ
the Improvement in agriculture
and the encouragement of modern
methods on the part of its members.
may be had on easy terms
and carries with it the right to buy
from the society, fertilizer, machinery.
ETC.. at practically cost price. For this
purpose the credit of the bank is call
into play.
Another institution visited by the
commissioners vas the. Cremona Fer
eiilzer factory, also cooperative and
apparently very Furnishing. The phos-
ohates manufactured here are sold ex- |
clusively to the members of the Co-op-
sratlve society at a price allowing for
: reasonable profit on the shares heid |
oy members themselves.
These three organizations-the bank.
ne FARMERS Co-operative society and
he Fertilizer factory-are in theory |
Independent though it was made plaIn
-hat in practice their membership and
heir directorate overlapped largely. |
mo that they worked together for
mutual advantage
80 Ii 0Alls HSIGI1Ou9, IN u
he village of Soresina, lis Situated
Vhat is presumed to be the largest co..
operative dairy in the world, handling
ne products of 1000 cows. Here eyery
angle ~by-product was being fully MIL
zed. The main product Of the factory
vas soft cheese but this was supple
nented by the making of skim mix
lutter n milk sugar. Finally the
lnslngs Were fed to hogs.
AS to h financial results, there is 4
..eneral law in Italy which lays down
nat In the case of cooperative socie-
les no shareholder shall receive .
dividend greater than 5 per cent. but
ne members of this dairy were receiy-
aIg 80 per cent. The explanation il
hat ten years after the formation Of
society all the share capital was
aid Off, after which all the buildings
nd machinery were paid for Now
mere are no shareholders receiving
iv1dends. but simply members, among |
1hom the annual profits are divided AZ
bonus. But if this annual bonus he
eckoned as a dividend on the Original
aiua OF members shares, 1T amounts
0 30 per cent
L 1850 III