Special Lectukes 359 



" The first, and so far the only, organized effort to establish cooperative 

 credit among farmers in the United States is that which is being made by the 

 Jewish Agricultural and Industrial Aid iSociety, a benevolent association 

 chartered in 190U under the laws of the state of New York to take over the 

 agricultural branch of the work of the Baron de liirsch Fund, another benevo- 

 lent association chartered in 1891 in the same state to administer the 

 $2,400,000 donated by Baron Maurice de Hirsch, on the condition that its 

 income should be applied to assisting Jewish immigrants driven from their 

 homes by political or religious persecutions." 



" The Jewish Agricultural and Industrial Aid Society obtains the money 

 for its operations and expenses from the Baron de Hirsch Fund and the Jewish 

 Colonization Association, the Baron's residuary legatee. In 1907 the Society 

 eliminated from its consideration the industrial activities of immigrants so 

 as to be free to develop entirely along agricultural lines, and it then so 

 enlarged its scope in the latter respect as to become the head of the propa- 

 ganda and organization work for Jewish farmers, immigrant and native, 

 throughout the United States. This change of policy and program was 

 brought about by Leonard G. Robinson, who in that year was appointed the 

 general manager of the Society." 



At the present time there are 19 of these cooperative credit 

 unions in operation ; 8 of them in New York State, 5 in Connecti- 

 cut, 5 in JSTew Jersey, and 1 in Massachusetts. Originally they 

 were all started as voluntary unincorporated associations ; but, as 

 New York' and Massachusetts have special laws for incorporating 

 credit unions, the credit unions of these states have already 

 been, or are about to be, incorporated. These cooperative credit 

 unions are strictly cooperative, and the voting power is vested in 

 the members and not in the shares. While the shares are sold 

 at $5 each, they are also sold on easy payments, and are therefore 

 within the reach of everyone. The basis of credit is character and 

 industry, although, of course, promissory notes with indorsements 

 or other necessary foi-ms of security are required. 



All these credit unions operate in small communities and among 

 small groups. Our largest credit union has a membership of 46 ; 

 the smallest, 14. Most of these organizations have started with a 

 capital of $500 and the Jewish Agricultural and Industrial Aid 

 Society loaned to them from $500 to $1,000 at 2 per cent interest. 

 The money is loaned to members only, at 6 per cent interest, and 

 usually in sums not to exceed $100 and with frequent partial 

 repayments. Three of the credit unions were organized in 1911; 

 five, in 1912; nine, in 1913; one, in 1914; and one, in 1915. 



Since their organization, these credit unions, with a membership 

 of a little over 500 and a capital of a little less than $10,000, have 

 granted loans amounting to over $210,000. The interest and all 



