The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1914-01-23

be taken by the banks to the amount
of SO per cent of the value of i'm
proved land, or to 40 per cent OF the
value of unimprovcd land. The ma
tional farm land banks arc similar to
the Credit Fancier in France, the
peasants and nobility land mortgage
seeking cooperative basis and exempt
from taxation. These banks are u
thorizcd to issue bonds as their obli-
cations. tho proceeds TO be loaned to
farmers on first mortgages which
shall bear higher interest than the
bonds, the difference in interest being
h banks profit. \ Commissioner oil
farm land hanks is provided, to have
genera! contract as a federal oificlai
aud federal fiscal agent to supervise
operations of thcs land mortgage
banks. Standard amortization tables
arc provided by which farmers shall
pay their mortgages in fixed annual
banks of russia and the state banks
of Germany.
Rural Credit UniOns Urged.
III" recommendations regarding
rural credit unions arc as follows:
"A careful examination u! these
credit unions shows thAt IL Is Scarcciy
the function of HE national govern
ment 10 provide for such institutions.
lsut these institutions arc necessary.
Nv VIZ u 49,
unanimously of the belief that no ma
tional legislation at the present time
would he proper for this field. al
though at ~ later time II might prove
advantageous To provide IT. We are
also of the belief that the different
states should take up this subject al
the earliest possible date, and pro
vide such laws as are necessary to au-
thorize the formation OF credit unions.
Indeed. various states have alreadN
taken this matter Nn II several very
rrcditah1r laws have already been
passed. such as tho laws of Massachu-
sets, Wisconsin and New York.
recognized the different financial
needs of different classes of people"
SAYS h report. and different insti-
tutions exist to serve the different
classes. but often ono type OF institu-
ticn serves tho different classes, h
Gcrnonstrating that separate institu-
;tons arc not essential.
%'Pcop.c's Banks" Founded.
The most important type of asricul-
tur;,l institution is known as the peo-
i'la's bank. tn" best examples being
found in Germany. Austria and Italy.
This institution developed in Germany
is known as the ;chulzc Dclitzsch, re-
semhling the small private. state and
national banks in parts of the United
sNt'lttS. NilSll CIliIiSeS III ouI IitllOudl
banking laws would permit small ma
tional banks to serve the same pur-
pose.
III would be WISE the report con-
tinues. ito authorize the establishment
OF national banks of the popular type.
NJ changes would he necessary i'll the
system of inspection or in the law per-
tanning to the business activities. 1t
is common in Europe to provide that
these popular hanks can loan only to
members. but this is not essential"
1t IS explained that the credit union
is a cooperative organization among
farmers IN Il community. Looming small
OF money CASUALLY less than
$1,000. for short time. to members to
help them improve and maintain their
farms. keep I'M their stock, M for
similar purposes. Chattel mortgages or
real estate mortgages are given as Sc
cnrity. q specific purpose for the use
of the money often being named in
the contract. and payments being
union acts between the LAM hank and
the individual in small transactions.
$4,000 Unions in Germany.
In Germany there are 1000 OF
these credit unions. called Raiffeisen.
whereas twenty years ago there werc,
only LOO. The total capital of each
is less than 1000 marks. as a rule,
(ahout $4,000 and surplus about 81, 900
each. but they handle a local business
aggregatine 1000, o00, 900 marks
tabout $500, 600. 900 deposits. In Aus
tria there are 5000. in italy 1000 and
many in Russia. Belgium, Denmark
and Holland.
In Germany. says the report. where
this typsee~was first developed. there
are LOST of the SchUlze-IoelitZscI.
banks. with an average membership
Of G3?-ahout one-seventh the num-
her of national banks in the United