The evening Caledonian. [volume] (St. Johnsbury, Vt.) 1918-1920, 1919-08-23
CREDIT UNIONS FURNISH a
GOOD LOANS TO FARMERS
Mutual Societies of Borrowers and Depositors Save
Farmers Hundreds of Millions of Dollars-North
Carolina Plan Offers Solution for Short-Time
Personal Credit on Reasonable Terms

One of the greatest needs of farm
ers in the United States is short-time
personal credit on reasonable terms.
The Federal loan banks are taking
good care of the land-mortgage re-
quirements in many cases, but they
arc not always available for new set
tiers and for farmers or planters VINO
need personal loans to buy live stock,
implements, or other equipment. The
need for short-time personal credit Is
shown as result of an investigation
by the United States Department OF
Agriculture in the southern States,
where it was found 60 per cent of the
farmers depend upon advances from
merchants during the crop producing
season. Credit extended by mer-
chants, commonly known as the ad-
vancing system, is usually exceeding
ly high. 1t is estimated by the de-
partment that hundreds of millions OF
dollars would be saved by the farm
ers each year if the means already
adopted in number of communities
were put to general use. The means
referred to is that of properly organ
lied rural credit unions.
State Laws Help Credit Unions
In nine States laws have been en-
acted under which farmers as well as
wage earncrs in cities may organize
credit unions. These laws, in so far
as they affect rural credits, 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 organlza-
ton of credit unions that will apply
to each of the States, but the plan
followed in North Carolina, where IL
strictly farmers organizations are
now in operation, should be of inter-
est. In North Carolina a branch of
| the State government, known as the
Division of Markets, has been charg-
ed with the work of encouraging the
organization of credit unions among
the farmers, and a special official,
| known as Superintendent of Credit
Unions, gives practical assistance in
their organization and supervision OF
| their activities.
The North Carolina Plan
In North Carolina IL 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 Superinten-
dent of Credit Unions of the State
Under his direction a meeting is cal
led for the purpose of arousing fur
Their interest, and spreading informa-
ton concerning the plans and purpos-
es of the proposed organization. II
the community is sufficiently interest
ed, a second meeting is called, and an
organization committee appointed
This committee is furnished with a
suggested set of bylaws by the Sup
erintendent which it decides to re-
commend either in their entirety or
with such amendments as local con-
ditions appear to require. At this
meeting also five persons are select
ed to act as board of directors. A
credit committee and supervisory
committee, each composed of three
members, are also named. At the
third meeting the bylaws recon-