Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1919-09-19

acted under which farmers as well as
wage earners in cities may organize
credit unions. These laws, in so far
as they affect rural credit, enable the
farmers who are members to obtain
loans on terms which compare favor.
ably with those secured by the city
business men. The movement of sur
plus funds of the individual farmers
has in general been toward the city,
but rural credit unions encourage the
retention of money made on the farm
where it is most needed. In addition,
it tends to turn the current of urban
capital toward rural districts, as out
side credit is secured through regular
credit channels-the banks.
1t is impossible to formulate a
method of procedure in the organiza-
ton of credit unions that will apply
to each of the States, but the plan fol-
lowed in North Carolina. where 10
strictly farmers, organizations are
nov in operation, should be of in
terest. In North Carolina a branch
of the State government, known as
the Division of Markets, has been
charged with the work of encouraging
the organization of credit unions a.
mong the farmers, and a special Off
cial, known as Superintendent of
Credit Unions. gives practical assist
ance in their organization and super
vision of their activities.
The North Carolina Plan.
In North Carolina II or more per-
sons in the community may organize
a credit union, the first step being to
sign an application for assistance,
which is addressed to the Superin-
tendent of Credit Unions of the State.
Under his direction meeting is called
interest and spreading information
concerning the plans and purposes of
the proposed organization. If the
community is sufficiently interested,
a second meeting is called, and an
organization committee appointed.
This committee is furnished with a
suggested set of bylaws by the Super
intendent, which it decides to recon-
mend either in their entirety or with
such amendments as local conditions
appear to require. At this meeting
also five persons are selected to act
as board of directors. A credit COM
mittee and supervisory committee,
each composed of three members, are
also named. At the third meeting
the bylaws recommended by the or
ganization committee are adopted by
10 -, rx,ik I,
out amendments. Necessary books
and business forms are also provided
! for at this time.
Two copies of the bylaws and an
Organization certificate are acknOwl.
edged before notary public and ap-
unions. One copy of each of these
documents is filed in the State divi-
sion of markets, and duplicate copy
is sent for filing with the clerk of the
county superior court. The work Of
incorporation is then complete, the
cost being limited to the notary fees
and SO for the recording and filing of
the papers. The members of the
board of directors and the committees
are tneu SWOTu Ill anu Il DOuu Is pTO-
vided for the treasurer.
Establishing Banking Connections.
| The board of directors appoints a
bank committee to select some local
banking institution through which the
union does it's business. The credit
union is accorded treatment similar to
that which one bank gives another. AS
rule it receives per cent interest
upon time deposits and per cent on
monthly balances, while it borrOws
from the bank at per cent interest.
The business of the organization is
formally begun at fourth meeting at
which time each member buys one or
more shares of stock at $40 a share,
and deposits with the union any idle
cash that can be spared. The union
also accepts deposits from nonmem-
bers It's operations are similar to a
small scale bank, but it is able to
operate at a minimum of expense
since most of the overhead expenses
of regular bank are eliminated. The
officers, with the exception of the
treasurer receive no compensation.
The treasurer, who is required to de-
vote three or four hours a week to
the organization, usually receives a
salary of about $50 year. The credit
union thus becomes primarily NUT
ual society of borrowers and deposit