Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1914-11-20
The Question of Farming.
VII. Helps 10 Rurai Credit.

AT tlme or great distress
among the small farmers of west
9rn Germany, in 1867, f. w.
Raiffeisen organized the first of the
asst number of credit unions that
low bear his name. The men who
Horned it had very little money;
gout, they had industry and charac-
Yer. When banded together so
hat the responsibility of all be
came the responsibility of each,
heir combined credit was consid
rable. 1t attra cted deposits.
'he deposits in turf were lent to
u he members, but only to men of
\ good character for specific produc
Hive purposes; and every man in
he credit union was responsible
or the payment of the debt.
II These societies, called by differ
tnt names, have multiplied so
1 greatly that they have spread over
4 Europe, and penetrated even into
Egypt and India. Similar Peo
4 ble's Banks, better adapted to ur-
4 pan life, have grown up in towns.
l But everywhere the cooperative
1 principle has inspired them. They
I tFmphasize the liability of all fol-
4 the debts of each-although it may
ksometimes be a limited liability.
LThey are generally small enough
kso that each borrower is personal
My known to the management.
IThey lend to members of known
|Rcharacter. The loans are for spe
jcific productive purposes, and can
not be diverted to other objects
The management is inexpensive,
flor much of the work is done with
out pay. The dividends on the
shares are moderate, and do not
usually exceed the current rate of
interest.
The question is often asked
whether this sort of institution
would serve the American farmer
ind wage Garner.
No doubt there are obstacles in
the way. The American does not
take kindly to assuming unlimited
liability for other peoples debts,
even when they are small ones;
but system of limited liability
can be introduced, as in the case
of stockholders in our national
Cbanks. Nor is the average Amer
lean a natural cooperator; but that
objection, too, may be overcom'
when once we realize that only by |
standing together can we avoid |
failing separately.
Meanwhile, the fact remains
that here is an institution that has
served millions of small farmers in
Europe during the past two gener
atiOns. 1t recognizes character;
calls out resources of capital and
thrift among the people; shares its
profits with its patrons; encour-
ages other forms of cooperation;
and tends to standardize both
farming methods end farm pro
ducts. There need be no antag0n
ism between the Peoples Banks
and the ordinary commercial banks
for the thrift and the business en-
couraged by the one will rebound
to the advantage of the other. Sav
ing will be encouraged on the one
hand, and on the other, savings
now boarded will be put into cir
culatiOn.
The whole business Of coopera-
ton for credit, production and dis
'tn;bution belongs together. 1t is
lot a thing to be established by
Wholesale. 1t should come from
within, and through study of local
lneeds. But there is no sufficient
reason why it should not accom-
plish in America some part of the
Service that it has rendered to Eu'
ope. That service is, of course,
Immediate and practical; but some
bf those who know it best main !
(tain that it's most important phase
lis sociel, since it cultivates the
sense of brotherhood and quickens
community life.
4 The country as whole, and al |