Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1919-06-13
How IA CREDIT UNION
SETTLED UNREST IN A
FARMING CENTRE
Banher-Farnaer says Farming ]
Speculative And Always Pre-
dnees gsYohIems

Bank -Farmer says Farmlng ii
Speculative And Always Pre-
duees Problems
Look over the map and place yonr
finger where you think unrest l. great
est among the farmers. and you will
have located inevitably the areas
which are dependent Oh some one crop
Or one farm product SO says Brad
ford Knapp, III the Banker Farmer
Under ali such circumstances farm
ing Is more or less speculative. and
speculative farming always produces
problems of marketing and distribu-
#lion oyer-productlon with low prices.
or under production with high prices
Under such circumstances farmers.
minds are naturally unsettled when
the crisis IL on z
ii would like 10 tell about Red
Springs, in Smith County. Texas, rs
adds Mr. Knapp. This was i conn
munity growing ID hatred toward the
town people and feeling resentment
because farmers thought that the hand
LOT the world was against them. Mr.
Clarence OusIey. 81 the Department Of
Agriculture. was wise enough man
to know that there must be an under
lying cause He sought for the rea
son and found Il In exceedingly high
Interest rates and high prices for
things bought on credit at the store
You may say that this was caused BY
IN unsafe systeml of farming That
may be true, but the condition called
for a remedy. a man was sent TO or
ganize credit union in that com
Inunlty This credit union borrowed
money irons the same banks on joint
security at around eight per cent, in
stead biz the old rate of twenty per
cent, which enabled the community
lto buy its goods for cash prices, and
at lower rates from the very bnsiwess
men who had formerly sold 10 them
lon credit This led to further CO.
foperation, and now that neighborhood
/ has i cooperative gin, Il cooperative
leannery and Ii talking about co.
Operative laundry All the time their
credit union still served them. The
experience Of this community has
led ii To the solution of It's own prob
LENS, and rs injustices have disap-
pcared, farmers recognize that b demo-
Icraiic government does furnish oppor-
1tuntty for the redress of their wrongs.
They are a much happier people
now Z
For many years the credit union has
been utilized BY farmers, business
men, and wage earners In Europe. To
finance themselves, and especially 10
provide for money emergencies
For years. likewise the credit union
has been In operation in the United
states but only on a small scale, and
hardly at all among country people
Hut as d result of the government 4
encouragement OF thrift through In
yestlnent in War Savings Stamps, the
credit union idea Is now rapidly
spreading. Workers IN factories. stores
and shops who make practical be-
ginning III thrift by setting aside part
III their wages for War Savings
stamps are carrying the thrift idea
further. and organizing credit unions
and others associaiton for teamwork
in thrift The same practical inter-
est is being developed by the forma-
ton OF group savings clubs IN lodges,
churches. oranges and country neigh
borhoods Through personal savings
and investment In War Savings
Stamps, are carrying the thrift idea
tect himself against such emergencies
as sickness and lack OF employment
Having learned the convenience or al
little ready money, safely invested. II.
lis natural for him to become mis-
sionary for the thrift idea, and act
as an officer OF savings club or credit
union What teamwork saving needs
most Of adj Is these officers.
Is movement was recently started
iii New York City ID encourage the
organization Of credit unions and pee
pies banks all over the United states,
particularly iii country districts The.
Federal Farm Loan Act has much 10
better the borrowing facilities of the
farmer who needs d long-tern loan
On mortgage. hut the credit union Of
fers d more flexible method Of pro-
viding for the temporary loans re-
CURED BY farmers and agricultural
workers. to finance the planting and
harvesting OF crops. This project is iii
cha Ne of committee Of prominent
bankers and business men. and ma
tional legislation will be asked for IN
- irving ont 4 variable national plan.
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