The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-01-14

4 A1EAl G~&UBIGRNAI& 0&A RMska 04ttSF 80
/ loan rescinded BY the committee "
management. For example. & he ASKS
d loan to buy a COW and gets it for mat
| purpose, he has To buy the COVE Fe-
payments may be made by lnsLAh-
mlentg but must be with absolute
punctuaIity. No bills, mortgages.
etc. are taken except q note
of hand either alone or WITH
one or more securities. 1T rs
are to make up the majority Of the
committees. NO compensation IS ar
lowed FOR service-no shares, only as
required by iaW-S1 each perhaps
without interest or dividends, all prot
1t being voted onc for all to tie =
nary reserve and the indivisible reserve
THE latter being regarded az the
backbone OF the system. These banks
are federated into a union n these
unions have d general agency. There
is also d central bank being an inter-
nlediary among themselves and be-
tween them and the money market
| which has al large capitalization with
provisional branch banks.
Their credit is remarkably good, so
good that they can obtain money at q
low rate and relend it to their members
at about 5 per cent Only good men
can obtain membership but the system
is designed to help the poor.
THE SchuIze- peIitxSch Banks
Franz Herman Schultze established
in 1850 his first advance Unionl
Vorschussverein in the town
OF Delitxsch, southern Prussia.
He wished to help the small
craftsmen working on their own
account. by stimulating their own
thrift. This is another cooperative
concern.
TN Germany there are some $4,000
local and about sixty central cooper
ative credit associations which lend
close to $1,000. 600, 900 a year. On the
continent of Europe in 1904 the co-Op-
erative loans aggregated the sun OF
81. 250, 900, 600.
Controversy has prevailed as to the
state subsidies given to cooperative
credit but the Prussian government In
response to popular demand, vigorously
supported by the agricultural interests,
has founded and endowed with $10,-
100000 Of public money. the Central
Cooperative bank, whose object is to
bring capital within reach OF various
groups OF cooperative banks. This
bank is under government administra-
ton and lends immense sums each
year.
I'm France the Bank of France has
been compelled to lend from $4,000, goo
to $7,000,0 900 without interest to assist
agriculture to the tune OF $780, 600 per
annum loaned free to regional banks
and by them at 3 per cent to local Sc
curities. State help has been given in
a similar way in Austria and many
other European countries. What does
the vane on the spire say7
Returning to the Raiffeisen banks
which seem to be typical thrift produc-
ing concerns, we see that each share
holder in a. true RaifEeisen bank has
unlimited liability. He has pledged
his worth and that Ii gauged by his
standing in his own community; SO by
uniting the strength Of a community
to the accomplishment Of a definite
-purpose-in this case to obtain imam
cial credit--we see what tremendous
power IL rolled up before we know, all
most. We see the same unifying prin-
ciple at work in the Schultze-De-
litzsch Banks and the other co-cpera-
tive concerns OF Europe.
lis it plain how we are compelled to
feed the SYSTEM TO illustrate. Sup
pose we wish to start a Raiffeisen bank
now. right here among us. Here is A.
ID, @, ID Il, h. Call good men ready
to pledge their worth. Their lands are
available so after the fashion of Ger
mans we proceed to weld together the
community credits-but lands are not
money, so how can these pledges take
THE form Of money? THAT is, get this
community credit on a workable basis
Will the government OF the United
States accept these securities based on
the lands OF A, ID, C-and grant au-
t1ority to issue notes for q circulating
medium against these secGrities9 Oh,
no. The law is not that way. Bonds
have to be secured by deposits OF gold.
Our national bankers have first to OBJ
tain a requisite number Of government
bonds before they can begin opera
tions in their banks. So is 1t not plain
to see that those who manipulate the
finance of the country have the power
over us being in possession OF that
which we need and must have2 Our
only hope OF existence Is to pay tribute
to the money kings unless we have
power enough through our ballots to
send our representatives to Wash
ington to give us the laws we need,
which could be secured only after ev-
cry inch of ground around and about
the capitol, up through Pennsylvania
avenue, and around and about the
White House had been hercely contest
cd to the bitter end and a victory pro-
claimed for the cause of humanity.
We'll, what then? We could organ
ize our agricultural banks after this
fashion:
Agricultural BAnkine Collateral.
Now we have the authority and we
wish to establish agricultural banks
modelled quite like the Raiffeisen banks
OF Germany. It's a. community bank
and our friends, "A. b, g, ID, II, #, q
have organized with q president, etc.
to begin operations. All these rner
are sound financially and morally but
as. usual. we find the boys on Wal
street In New York, and on Lombard
street in London have the dough
but thanks to our agitation, we have
authority from the people OF these
United States to deposit our pledges
on our lands as collateral with ths
treasury department in Washington
and issue notes, which shall be lega
tender for the payment OF deBts
against that security based on tl'
lands A, b. G, ID, etc. Now wv
have our capital stock and our circu-
Iating medium and the system can &c
to - They cannot say to US: Yes
we have some government bonds here
but the price has gone up lately, SO yot
will have to pay the premium to ge-
the bonds. But we cat a to them.
Our securities are the best FOR there Il
nothing on top OF Gods green eartf
that can destroy our lands, SO liz th.
will be the same lands still with tlis
increment Yes, they will say, tina
looks good but what are we going K
do, when 1t lis not possible to ride yol
people any Ionger2t We'll, brothers
you have the gold-can't you be salts
fled to let Us do what seems best fol
uS? Or il you wish to work as we do
come and join ranks Cor we are al
brothers and ths same Showers tina
yours-the same sunshine that il
furegsfhA fruits az orr toll will ais.