The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-08-19
OF INTEREST TO THE FARMERS
BY w. f. HOWELL, COUNTY AGENT.

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 landmortgage re-
quirements in many cases. but they
are not always available for new
settlers and for farmers or planters
who need personal loans to buy live
stock, implements, or other equip
ment. The need for short-time per-
sonal credit is shown as a result of an
Investigation by the United States De-
partment of Agriculture in the South
ern states, where it was found GO per
cent of the farmers depend upon ad-
vances from merchants during the
crop-producing season. Credit ex-
tended by merchants. commonly
known as the advancing system is
usually exceeding high. 1t is esti-
mated by the department that hun
dreds of millions of dollars would be
saved by the farmers each year if the
means already adopted in a number
of communities were put into general
use. The means referred to is that
of properly organized rural credit un-
ions.
State Laws Help Credit Unions.
In nine states laws have been en-
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,
il 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-
tion of credit unions that will apply
TO each of the states, but the plan fol-
lowed in North Carolina, where Is
strictly farmers organizations are
now 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 or
ganization of credit unions among the
farmers, and special official, known
as superintendent OF credit unions.
gives practical assistance in their or
ganization and supervision of their
activities.
The North Carolina Plan.
in North Carolina IL rmore per-
aons in the community may organize
a credit union, the first step being TO
| sign an application for assistance.
(which is addressed to the superintend-
Under his direction meeting is
SCALED for the purpose OF arousing
further interest and spreading in
Formation concerning the plans and
purposes of the proposed organiza-
ion. If the community is sufficiently
Interested. a second meeting is called.
RRnd an organization committee ap-
pointed. This committee is furnished
with suggested set of bylaws by the
superintendent, which il decides to
Hecommend either in their entirety or
Il it'll such amendments as local con
ltlOns appear to require. At this
leeting also five persons are selected
act as board of directors A credit
HmMiftee and a supervisory commit
e, each composed of three mem
erS, are also named At the third
eetlng the bylaws recommended by
Pc organization committee arc
iopted by the entire organization
lth or without amendments. Neces-
ry books and business forms are
so provided for at this time
TWO copies OF the bylaws and an
sanization certificate are acknowl-
sed before a notary public and ap-
owed by the superintendent of
edit unions. One copy of each OF
ese documents Is fled In the state
ision of markets, and a duplicate
Py Is sent for filing with the clerk
the county superior court The
rk OF Incorporation is then COM