The nonpartisan leader., 1920-12-27
The Story Of French Cooperation
Organization Saved the Farmer and Nation From Bankuptcy
Aid Extended to Farmer in Ways Denied Here

private financiers. It had to go before the French
congress to get it's original charter and renewals
The cooperatives, by this time, had sufficient po-
cal strength to be able to dictate the terms of the
new charter for the Bank of France. 1t contained a
provision that the Bank of France should lend toI
the rural banks $500000 free of interest to assist
them to finance the farmers of France. To these
terms the Bank of France agreed and the organ
izaton of the local banks and credit societies started
immediately Within short time 20 had been or
ganl7ed and the number now 20 years LATER is more
than 4,700 - @&es
French farmers often found themselves placed in
the position of the American farmer today, facing
a market that sure to fall if products were
dumped upon it Immediately. -
GET LAWS TO ALLOW
FARMER TO HOLD GRAIN
The French congress provided two means byI
which this situation could be met. First, public
warehouses were established in which the farmer
could store his produce and then take the "war-
rants or warehouse receipts and raise money upon
them. The capacity of the warehouses was insufi-
clent, however, so in 1898 law enacted
authorizing the pedgng of produce and the obtain
ing Of warrants upon goods still held upon the
premises of the farmer. This latter law has not
proved wholly satisfactory, it has been difficult
to secure loans Some of the "syndicates" have
made loans to the farmers but the practice has not
been at all general. Possibly some further extern
sion of the public warehouse system, which is es-I
sentlaliy the same thing that the NonpartlSan
league proposes will have to be worked out.
French farmers were able to get government aid
at every step without forming separate political
organization. Their experience has been quite diff
ferent from that which the American co-operatives
have met from the politicians of this country Min
nesota and North Dakota farmers remember well
the fight of public officials of those two states
against the Equity in the days of George LOTUS,
while within the last few years the milk producers
of Wisconsin and Illinois have faced criminal suits
on account Of cooperative action, and Attorney
General Palmer is proceeding against the
raisin growers of California.
Why is it that French co-operators got govern
ment aid while American co-operators face law
suits backed by the government?
The answer is that in France, when the co-opera-
tives were first organized nearly 40 years ago. big
business was not organized nearly completely as
in America when the co-operatives began their op-
erations here. It was before. the days of the
"trusts" Agriculture was threatened with such
complete ruin that it was likely to pull all other
lines Of business down with it. The cooperative
societies saved the day. At the same time that they
proving their usefulness to the entire French
people they were being built up so strongly that
big business, which started forming it's trusts in
France around the year 190O,s did not dare molest
them.
Similarly, at the time the French CO.