Middlebury register. (Middlebury, Vt.) 1886-1937, 1914-01-23
BY j. w. BARROW.

BY j. w. BARROW.
Much is said these days about farm
ers' banks. rural credits and kindred
subjects. Our agricultural leaders are
at sea and our farmers are in deep
water over the money lending and
money borrowing problem. 1t has
been stated recently that the 12,0OO,-
600 farmers of the United States add
each year to the national wealth the
tidy sum of nearly $S,400,000,000, and
they are doing this on a borrowed
capital of over $4,000, 100000, on which
sum they pay annually interest charges
Of over $50O,0O0,OOO. If commissions
and renewal charges are counted the
interest rate paid by the farmers of
this country averages S1a per cent,
while the German or French farmers
who borrow money from their own CO.
operative banks pay but 31a to Az per
cent. The question then arises. If
there is such n saving to the farmers
of foreign countries by cooperative
banking. what is the reason co-opera-
tive banking is not practiced in this
country?
The German farmers have 1900 To-
cal cooperative banks, and through
them they secure short time credit at
moderate rates of interest. These To-
cal German banks are further organic
ed into central cooperative banks, of
which there are about forty or fifty,
and the total turnover of these banks
In 1911 amounted to $2,051 $4,000.
While our American farmers have
been waiting for somebody to come
forward with plan for easier rural
credits. our enterprising Jewish farm
ers have been busy solving the prob
lern for themselves. The Jewish Agri-
cultural and Industrial Aid Society of
New York has been blazing the way
for all farmers along this line. and
while our commissions have been tour
ing Europe for information the Jewish
farmer has been quietly helping him
self to the privileges of easier money
through his own banks and loan aSso-
cations The total number of these
loans. according to the latest returns
available. is 2.JGS. aggregating S1,494,-
49,. They had eight cooperative
banks in operation at the close of last
year and probably more now. This as
ISOLATION is given the credit of being
the pioneer Of cooperative agricultural
credit in the United States. Simply
patterning after one of the German
systems on their own account, they
have started system of banking that
is proving the thing they need and 1t
is one that any other body of farmers
can adopt and work out to success II
they will use the same intelligent
methods as the Jewish farmer has
practiced.
One or two things must be admitted.
One is that farmers as well as other
producers must have money to run
their business and that 1t is no dis
grace to borrow money when they
need 1t to enhance the productiveness
of their farms and make permanent
improvements that are needed. And
1t Is also to be remembered that the
European farmers credit is no better
than the American farmer. 1t is the.
conbined credit of a group of farm
ers that forms a gilt edge security on
which the money markets Of the world
will lend money almost as cheaply as
On government bonds themselves. Why
not so here?
Whatever credit plan is formulated
1t is to be borne in mind that it Is the
man without property, but with am
bition and character. that the credit
system is to help. 1t is to discourage
tenant farming by making 1t possible
for the tenant farmer who desires to
become the owner of the land he tills
to own 1t and to help new landowners
to help on and keep going-a thing
they cannot do If they have to pay 8
per cent for the use OF the money they
must borrow.