Show 3 i DAILY HASKIN HA KIN LETTER LETT I RUP RURAL RUP L CREDITS j 1 VIII The System 4 I In 1848 there was a season of dis dis- distressingly distressingly ly hard lard times In Germ Germany ny The heart of Frederick William be- be 1 Irig moved with pity for tor the poor of Co- Co bicar ho he organized a a. operative co-operative society for the distribution of bread and potatoes among them Tho The following year he founded at l. l a JL loan society for tor the support of the tho farmers Its members being being- rich philanthropists who sold cattle to unorganized farmers nt at easy rates In 1862 1863 he organized a Q third society at Anhausen which went a a. astep step further its membership being constituted con con- by the borrowing farmers thome thom thom- and selves e and thus thua was as developed d a a. rural credit Arat system m that has carried aid to millions mullions mil mul- lions lion of oC farmers tanners and whoso whose boast la Ia that no man ever eyer lost a a. dollar in a a. eD ban bank k We Ve can see the development of the idea Ide first first a charity charily organization tl tp relieve distress followed by a a. philanthropic organization or or- to assist the farmer to get back upon his feet and then an organization organization organization of or farmers helping helping- themselves and making them themselves independent In launching his system of farmers' farmers b banks kept the moral aspect constantly before beCore him hini Ho lie utilized to the full the one certainly Intelligent nt power then to be found in Iu t every cry farmIng arming district the parish priest or pastor With the help of oC tho the clergy he touched In the tho p peasant isan the tho golden chord ord of or neighborly affection and brotherly kindness dev developing a a. new parochial life lie Around tho the village bankIn bank In this thin bank everything was walS limited ant and restricted except liability for the debts debt of o othe th the bank and as to that every dollar Jollar o of every member was pledged to make them good The territory in which a Il bank could operate was restricted to that section section sec sec- tion where every ey e y member was the neighbor neigh neigh- bor and business acquaintance of over every overy other member in order r that none but hut ro ro- ro borrowers and men of good COCK habits could become members The Tho tI tie of a a. loan was restricted to rC reasonable limit so that changed conditions might aught not affect it H the amount of the loan lonn was wis limited b by the reputation and tho the needs need of the borrower and the tho uses rises to which h 1 it could be put pUl were only those that bade bad fair fall to allow the borrower to return the monc money without hardship upon himself Discovers New Credit Source With this system based upon honesty and thrift nt discovered a new source of or credit the credit tho collective liability o oa or of orn ofa a n considerable number of or honest an and thrifty people Tho The subscribed capital o oa of oC ofa oCa a bank Is 19 only nominal there nominal there was vas none nemo at all until tho the government passed a law requiring some such cap capital capi- capi tal tat Now a share is often sold eold for a as little as a So dollar and sometimes for a as little lIUIA as JI 2 cents The loan capital of ono no no of these banks is made mado up largely of ot deposits deposits de do- de- de posits made by peasants peasant who may deposit de posit as little a as i a mark at a time the smaller deposits being collected by penny stamp boos books and although the peasantry uses the he banks for the bulk hulk o otheir ot of their savings not a dollar has ever eVor 1 been een lost through such depo deposits lt In addition to this capital the local bank has an nn ac account account account ac- ac count with a R central bank from tram which i It obtains credit atlow at low rates The banks make simple loans open current accounts and handle pr property prop perty p- p erty transfers thou though h the bulk of their business Is the handling of ot simple loans Joans For these the security is either cither a personal personal per per- er- er tho the latter pledge or 01 a mortgage being used when a a. man does doe not find i It convenient to offer otter personal I But In such cases the mortgage Is used only in lieu of personal Indorsement indorsements and andIs andis Is not made an an Instrument for forr u a long Jong term loan as in the land mortgage e banks In all cases the bank insists on knowing not only the borrower borrow r. r but the purpose o othe ot of the loan Joan as TV well welI ell Transfers Are Unimportant The property transfer business of the banks Janks Is Incidental and relatively relatively rela rela- unimportant If an estate is le to besold bo be bosold sold and subdivided ana fino a number of poor pta peasants ants want to get a little tract of land out of oC It the tho bank step steps in pays the seller Ills Ida price price minus minus a small email blon anti sion-anti allows the buyers to reimburse reimburse relm- relm burse bursa it in small Installments for principal principal prin prin- cipal and interest It requires the prompt meeting of these installments thus encouraging en on- In coura-In thrift It thus keeps the buen buyers buyers buy buy- ers en out of the hands of or real estate sharks who lio demand largo commissions and encourage encourage en en- c courage arrears so BO that the buyer buer may mayde de default fault in the end Sometimes the these e dealers force farce orte sales lust a at l the limn Um when the market Is fa mast rn st the repurchase times land the banks at a very frequently unfavorable low s I g themselves r resell i t at able ablo time and a J I advantage of ot the generals generally bargain refu P the profit to tt the th Th 1 e esell thie sell IOU PJ JU man who W f deducting only the c for the service Of co th confidence ence of a community tor I lt Often tho the man who h has baa hid had thus saved ed enough money I to fresh start This is confined land tr crane tarDy tI to t main and takes place la only only bank has ht i. i member of ot surplus tho the society money st st. y 1 be I Pro by the tran transaction iv Banks Aro Arc t The Tha bunk bank nev never r v place of business It it handsome buildings with bam burel and grilled rages cages neither hart baa of clerks It'll f discharging a co cc business while directors iii alai olal clients In a room apart apart- It t II located in a e. small email room moat Ir back of ot a farm tann building and Is fa twice a week its routine presided Je a single ingle the person-the ao aC neall am 1 by n no ra means mean s brisk not child chUd with a few tow pennies t to d e an n old and palsied man who wha with a cross OTon draws out a f few fe mar 2 his support Once a We week c th tS meeting of the directors Who vrho credit problems that have adze their thell last meeting those these The banks credit usually r R van I averages around fA can be called In upon a tour four w tics lice but this Is ts seldom don dope a. a appears pear that the borrower I. I n nOt hi hH his money to good use uso l 1 or 01 is allot property lO erty to go SO to tho the dos dogs and to drift toward Insolvency r The cation of punctuality of or pa p. p moral duty was the tho hardest er eti sen sens sen's s tasks tASk but It has proved bla 1 triumph Summing up the r results of work fn do h i ng a system tem credit C C. CR R n. Fa Fay one of the deli 4 a 0 tho the English student h students of ot rural says ean If It bo be asked finally tia felsen telsen banks have done which othe cu have no not it may b be replied that l sen n created out of chi ch only kind of credit possible for t l Ut agriculturist Indeed the cha changa re in many places Is nothing ih h hor ln revolution Tho The experience P rien of village bank may serve in Town of Anhausen regenerated Regenerate About an hours hour's walk from on the Rhine Rhino is Id situated on th the thi bordering the Westerwald the Ule Hi lit lage lags of ot The di fertile and the Inhabitants an try peasant proprietors some with filth o land to graze an ox or t s ee e owner of ten acres Is a n. rich man mall the year tho village present ry aspect rickety buildings unU In rainy weather tanning running wit with h flita flit flitt a sight of a decently piled plied minu the Inhabitants themselves rill nfl immoral drunkenness anI and pis on universal and oxen below Delos few exceptions to Jewish dw dashes J cultural implements were scanty l the tho badly work worked fe k 1 in poor returns The I confidence and hope O and nd serfs of ot dealers and usurers usurer N hausen on is a clean elean and village the buildings well kept tep yards yaros clean oven even on work orderly manure manuro heaps on eve every inhabitants are re well if simply their manners are reputable tho the cattle in their stall 7 of ot debt to usurers Usurers and and and dealer Implements are aro used by nears neri farmer tho the alue value of ot the farms tarm hi an and the fields nelda carefully and aulS fa till tI yield large crops crop An M change chanKe which Is something nw rase statistics can express is 11 the wo wan simple bank j t Father lived JIved to a i r age age lived lived to see his l ideals ot of in behalf of the peasant farmer fanner the keystone of German dillon and anel lived to see eee h ht hi 1 sweeping over all western EUR Euro working Ith with equal facility In Austrian Fren French h. h Belgian an and e Si Re communities A moue his memory now stands in the of v his birth and two wonderful sculpture thereon tell the story tor service to the German farmer C 0 relief roller shows a farmer and his hi fam fas the wreck and anti ruin of ot failure Tl TD shows another farmer falmer with jJ c cand and prosperity In his own face an sleek cattle an and the tho high around him Monday fonday RURAL RUEAL CREDITS VIII Tho The Tho 1 J |