The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-03-26
BANKS
GOOD FOR PRODUCERS

Credit is the Hfehood OF society.
1 credit brings labor and his tools to-
ge,her. We think Of credit as an
agency Of business; as something
that only the railroads, the capital
lists. the business men need. That
is because these classes control
banking and credit They have
taken them away from the farmer
and the worker who need them just
as much as does the business
Labor in America receives up
wards Of S3O.o0O,O0o,o0o year in
wages. The farmers receive half as
much more. Workers and farmers
form the production classes; they
produce all Of the wealth of the
world. 1t all comes ultimately
from labor and land.
Why should not the workers and
the farmers do their own banking?
Why should not they control their
Iown credit agencies? They do in
iother countries. And they have
made a success of it wherever it
| has been tried. There are no fail
lures and practically no losses in
the banking activities of the work
ers Of Europe, which have a turn
over running into the billions OF
dollars each year.
The commonwealth of Australia
maintains a bank of its own. 1t
was organized 10 reduce the cost OF
credit TO the farmers. 1t has the
credit of the Commonwealth OF
Australia behind it. The bank has a
savings bank department and uses
all OF the post offices as branches
Int completes with private banks. II
has materially reduced interest
rates. The Commonwealth Bank
was founded by the Labor Govern
ment to assist the small and strug-
Cling farmer. the artisan and the
worker. 1t has performed a great
service in this respect.
The state of North akota opened
the first public bank in America in
July. 1919. II already has re-
sources of s17, 100000. 1t has re-
duced interest rates to the farmers
from S12 to per cent. Even more
important, it has made credit avail
able to the farmers. In five and
one half months time it made net
profits of $4,000.
The cooperative store movement
lis spreading with great rapidity al
over the country. Cooperative
wholesale stores to supply the loca
Istores are being founded. The
Brotherhood of Maintenance of Way
| Employees has invested several
Thousand dollars in factories and
plants TO supply railway employees
with knit goods. gloves and other
lclothing. All of these cooperative
societies will need credit. They
now have to go to private banks
Should they become so strong as tC
menace the capitalistic order they
may find credit closed to them. The
lCnlv way TO prevent this is for la
Dor and the farmer TO have bank;
LOT their own. If they can supply
themselves with credit, private in
stitutions will not deny it to them.
The banks hold the life of the CO.
Operative store movement in theil
hands. They can smother it as they
have used their power in the pas
10 exploit the farmers and the cat
tie growers of the west. They no
only exact usury, they deny credi
altogether to those whom they DE-
mot like.
Cooperative banks managed b!
peasants and workers exist all owe.
Europe. There are $1,000 sucl
banks in Europe alone. There ar
5000 in Japan. They are organize,
by groups of farmers and b,
groups OF workers They plac
their savings in a common fund. !
committee or board Of director
lends this money back to the mem
bers at low rates Of interest, to b
repaid in installments. These ar
known as credit unions. Their
were 5000 Of these credit union
lin Germany in 1913, with a com
bined capital of $65O,0O0,00C
These were the farmers banks. TIL
workers also had banks which mad
loans TO the working classes
-|1911. amounting to s1053, 100000
The credit union is successful
! Canada. where $50 such banks hav
been organized. Not one of theI
A had lost a ppnnv I'D TO 1914 The