Lower coast gazette., 1913-06-14
Co. Cooperative Finance for American
Farmers.

The greatest OF all mafVelS III econone l
lution is organized cooperation: Appieu W.
finance. it multiplies an hundred-iolo llee poTea $
Of each dollar of cash, by transfers OIL cleui.s ;,
through the mechanism OF exchahge. n aiR11 onA .
40 oaric,lt1re, organized cooperation Will en-
sb,a farmers to finance themselves, improve t
distribution, reform marketing and promote
their material, physical, mental and splrltual
welfare. Therefore, adequate finance Ior lalll-
;no il the basic need to-day. Hence American
farmers now unitedly demand:
l That whatever reform OF currency aiiu
hankino he enacted by Congress, Shall proVioe
facilities for financing the farm and small IN
dnstries relatively equal to the facilities ai1ofu,
od the GREAT manufacturing, commercial anu
business interests. ;u, ord an
3 That such reform shall authorize ana Gu
courage the cooperation OF savings anu llll'
credits and loans, by people OF llmltea lle@nam
farmers. workers in other vocatlons, anu plo-
ducers generally-and the wise use Oh thelr Iolir-
bined resources by these producers tnemselves'
Thus may farmers ENJOY a more elui'a nn11 IN
fthis wav can the United States become more
aaI more q GRAND COMMONWEALTH, less
I'D loco q nation of the few rich and the many
poor! ~ cron+s If
3. That this shall be done not py grams "
nan NOT by special privilege, but by relatlVe
e eapalitv Of opportunity in banking and ex,
change for n~ersonal mortgage savings anu
looms whereby farmers and the common peo-
rIa nav co.operate to successfully finance them
Solves under either or both federal ana state
law.
NOW THIS MAY b BONE FOR PERSONAL CREDITS.
E;ret Let Congress- authorize seven or more
noonle, in anv locality to organize their own little
local savings and loan association, or agrlcul-
tural co-operative national bank. 1t VIII pe 10
orr rural neighborhoods what the Rallieisen
society is TO rural life in Europe. Far Vaiue VI
shares. SIS. no person to own more than wv
shares. cooperative, each member, one Vote,
mot canitalistic. one share, one vote. beg!h
business with as little as $1,000 cash PAID IN
c]anital: when capital reaches $4,000 or more,
then the cooperative bank becomes suoJect 10
substantially the same legal provisions that ap-
NV to commercial national banks, lof Witch
that figure is the present mlnlmum.
This little local savings and loan assocla.lon
receives deposits from members ana noh-ilen-
beers, and may also borrow money from o.nea
sources. These funds, together with the money
,ooo;vad from the sale of shares, and then
loaned out in relatively small amounts TO the
members for productive purposes only.
The borrower states in his application What
bo wants the money for, and offers the endorse
mont Of one or two other members as security.
I've rennest is considered in strict commence
hv q credit committee of three, and grantee II
10 object seems worthy and likely to proouce
. nroft. such as the purchase of seed, 1er1lli D
zors improved live stock, etc., but refused y
for non-productive object, like the payment o.
an old debt Or for some luxury. Inc ioau i1 t
he made for from one to SIX montns, VIII .N
understanding that the borrower may va.
something on account and renew tne palaii 80 :
the use is one that requires more tllie " -
a profit. h,,;roee that i
nottu in ;ts nature. The loans may be any
who're from 81 to 500 or more, deposits 1ron
Z aonts nn-ac class of business so small as no
~ no attractive to the commercial DanK. LII
aor;cultural bank may even operate WIN alllios
ne nxnense. by keeping it's account WIN SUN
visiting hank. It's total expenses may hot q
Good 500 a wear, only the treasurer or manase
heino Maid. the directors, supervisors ana creo
oonmittea donating their services. The supes
v;sors are not only auditors, but have overslgl
o,,o,. tho management and represent all u
shareholders. o4hor hon
Tho members meet frequently, get Detter d
onainted, nave more confidence III eacn y
and in their little help-for-self-help oaho. y
and Young (eVen the cnllulehl ~
sistic about it, take pride in saving their H. !e
Mes and small change to increase their NJ
deposits, and each member of every ram en-
wants to W one or more paid up shares: ~ =!
personal interest, this cooperative splrlI, u
service by each member, this developmehs
the cooperative ideal Of seeing how macn !
can do for the coop" instead OF mercy y
much we can get from it-all these FACTORS
human feeling, personal enthusiasm, sacri.
and service, confidence and splrltualley'
vital to the best economic success n,:o4oa ~
These little societies may be aIlll aa'ah " y
oach other or with existing banks through .
1eaoues. SO that when money is aoundan! III
section. section and scarce in another, the SITUATION
automatically adjust itself. -
This cooperative bank makes only cai LII
looms so that it may always meet aeposlu
,ui;t]hdrawals, instead of tying up ITS curl
funds in permanent mortgages; buI our
l nueratiye bank acts as the local agent Tor +
land bank in it's State. Thus the farmer a?ah q
,a;th his own local agricultural bank, elt Is,
danositor, as a small borrower Iot Iu .an
~ le--l ~ n0nI I1dI