The Birmingham age-herald., 1919-04-17

HOW CREDIT UNIONS HELP THE FARMERS;
 EIGHT STATES PROVIDE FOR THEM BY LAW

the New England states, personal-credit unions have been established, and have fostered saving among the laboring
 classes and their children. In Massachu- setts, where the first of these clubs, the 1 Myrick union, was formed in l9.S, there are so such clubs at present.
 l Under the German Raiffeisen system the credit union was a strictly cooperative | association conceived without capital stock, although ultimately the imperial l government required all such clubs to have capital stock Under the Ralttelseh system these unlimited liability instltu- tions make small loans at low rate or interest for a designated purpose to worthy members of the society
 IS A UNIVERSAL DEPOSITORY | The capital stock company is the typ ical form of organization in the United l States Eor the association with share l capital there is a limitation as to liability of the members. and this feature has been | important in attracting members and cap- | ital. On the other hand. for those com munities where share capital IS not read | fly available, the nonstock association af- | lords means of obtaining funds on the basis of an unlimited liability.
 l The credit union will accept deposlts | from anyone, but it will lend money un- der restrictions only to it's members. Funds are obtained by the credit associa- l ton through share capital, by general de- posits or by borrowing in the name or the association. Usually in the nonstock asso- citation a small membership fee IS charged | SC as not to discourage membership. rms furnishes funds for a small working capl- | tai.
 l In the share capital clubs such snare | sells for $5 to s1O Ordinarily there is no limitation on the purchase or Shares unless this is controlled by state law or bylaw of the association. No salaries are | paid except nominal one to the secre- l ry-treasurer, who usually is farmer | or business man having cohnectioh l with a rural bank.
 The success of the agricultural credit unions in North Carolina has been due largely to the fact that the state agrl- cultural department has aided the move ment by valuable educa tlonal- Work among the farmers for the encouragement of credit organizations. This assistance l from the state is so invaluable that other states contemplating the promotion or rural credit clubs might well consider the practicability of a similar arrange nent. in the opinion of the federal de- ma rtment of agriculture. The superin- l tendent of credit unions in North Caro- lima assists groups of farmers interested 1 in the credit system idea, and advises with them not only in the formatloh oA clubs but also in the efficient manage ment of the organizations after they are formed.
 HAS S17 CREDIT CLUBS | The 17 credit unions of North Carolina , LID to December, 1918, had total mem bership of 7S3, with 299 depositors who
 have made payments of $7977.21 on shares
 of stock The deposits aggregate Sla,
 175. .25, and the loans to IA borrowers tota, u
 S17. ITS. .76. Only $320O had been borrowed from local banks while the cash in banks
 amounted to s7529 S2. The totali resources
 of the 17 cooperative credit unions was s27. .465 O1 at the time mentioned
 The Vadese union, organized Feoruary
 10. 1917, has 80 members and S7 deposltors' who have made payment of MAO OH shares The total deposits were Soeoo .oS io December. 1918, while 31 members had