Omaha daily bee., 1915-08-16
Cooperation and
Rural Bank Credits
v. HATlGAKnR,
nnudinr-I.oan a

X. v. AAEMAAE2y
Ohio Inspector Butding-Loan Associations.
Among the farmers Of America the idea OF
operation II spreading at a surprising rate. The
port Of the agricultural department OF Kansas just
off the press gives list Of the mutual cooperative
farmers organizations Of that state. which numbers
about 900 and includes grain elevators, creameries.
cheese factories stock Improvement associations, and
many other lines OF activity. In many communities
in states mutual fire insurance companies
carrying the insurance risks Of their members
tual telephone companies connect rsal regions
with network OF wires and give service 10 millions
OF our farmers: few months since. in conversation
with the national secretary OF OF the farm
ers organizations he told that his society owned
than 5000 grain elevators. organized and oper
ated on the mutual cooperative plan stretching from
the Great Lakes TO the Pacific coast Through the
medium OF cooperative daires the state of Wisconsin
has become the leading dairy state OF the union and
each ships out Of its borders NOo,OvoOO0 worth
OF dairy products In the fruit districts scattered oyer
states the producers have cooperative sssocia
tons which handle the selling end OF their business.
In the citrus districts OF California and Florida the
fruit IL handled by these cooperative associations
These only few examples which indicate the
growth OF the idea OF applying the fundamental idea
OF democracy the equal rights OF each and all 20 the
business affairs Of America.
Il is a fact which is hard to explain. that while
the idea OF cooperation in business affairs is being
most cordially received and is having it's greatest
growth among the farmers OF America. the building
association which is the expression Of cooperation in
financial affairs has had its almost exclusive growth
In the towns and cities OF America.
In recent years the merits Of these cooperative
financial institutions attracting the attention OF
the farmers. In the communities where this Is being
done building associations rapidly becoming the
strongest institutions operating there having greater
assets and tfsnsacting greater volume OF business
than the capitalized institutions with which they
surrounded.
what is the field of operation which these associa-
tons may oceupy9 As stated before the chief activi
ties OF these associations have thus in the
line OF assisting town and city workingmen TO
their money and provide homes for their families.
Very little OF their business thus far reached
farmers of America those living rural communl-
ties This has doubt been largely due the fact
that building associations originated among city work.
lngmen and its progress and development has always
been In the direction OF such changes alterations
In the plan will make II most accurately fit itself
20 the needs and conditions OF its membership As
result many Of the features of these institutions.
which are In fact mere unmportant details OF organt
zation and OF plan and method, have come assume
in the popular mind the weight and Importance OF
vital. features For example, In the popular
mind. the idea OF a building association loan is
where the borrower pays Of his debt by small pay
merits made weekly monthly. Since the business
OF the ordinary farmer does not enable him TO
these weekly monthly payments. therefore the
building association be adapted TO the handling
of farmer loans Now. the in this statement Is
in the assumption that weekly monthly payments
Is vital feature OF the building association plan.
accurate statement OF the building association
plan loan Is that II Is a plan by which the borrower
IL enabled TO pay off his loan by making periodical
payments OF sum sufficient to cover accrued in
terest and amortization payment his loan The
length ofperiod between the payments Is not vital
feature of the plan, but should in every association
which desires TO do the greatest possible good In its
community and the greatest number Of peops
and In every loan made by such association be 50
fixed and adjusted TO fit the needs and circum-
OF the individual borrower, II he factory
employe engaged In any occupation receiving
weekly wage, fix his payments on the weekly plan;
II his wage Is received monthly. make his payments
coincide with his pay day On the other hand in tho
OF a farmer, you give him loan contract
in which his payments fall due semi-annualIy' which
will exactly TT his needs and his income, and will
violate fixed principle of the building association
plan
My plea Is to widen the field Of building association
activities Not by going into the forbidden fields OF
speculation or unsafe investment but TO retain and
keep ever mind the motto OF the Building Associa-
ton Leagues OF America The American Home, the
| Safeguard Of American Liberties" Some building
ASSOCIATION men seem 10 interpret that motto to be
restricted the town home or the city home; to my
mind however Il is broad enough in Its language ana
wide enough its application to embrace every nome
fIres,de IN all the land whether the crowded city
| or the busy village. amid the quiet acres OF the
| country farm. BY widening the building association
plan 80 as adapt II to the needs OF American farn'
ers YOU at open your doors 10 ADMIT on eduai
terms the greatest OF wealth In America Last
| year the produce of American farms agsresated
! $40 600 cocoon All the revenues of all the railroads
wore me-e bagatele the vast resources OF Ameri-
/ can farmers And yet while the farmers have sueh
vast wealth. they In the worst financial condition
as a class OF any to be found In America why y
this? simply for the reason that they nave not yer
learned the art Of cooperation. Of combination. OF
| team work In handling their money. The building
association Is the mighty. successful example OF the
very lesson they should learn
| rx,raets from address deliyered at the san Fran
cisco convention OF the United States League OF Build
ing and Loan Associations