Beventy-Thied Annual Keport 1235 



American needs, Thej are cooperative. Thej may be organized 

 on limited or nnlimited basis, and they are broad enongh and 

 elastic enongli lo absorb the idle money of a community and con- 

 vert it to productive uses in the hands of the members of the bank, 

 allowing- the depositor a fair return for the use of his savings, and 

 at the same time furnishing capital for productive enterprises at a 

 minimum rate. 



Some men tell us we have already enough credit facilities in 

 the national banks ; others say this is nothing but a national 

 bankers' scheme to monopolize farm credits as they already control 

 other business and corporate credits. Both criticisms could not be 

 true, and as a matter of fact neither are true. We have no intelli- 

 gent system of farm credits. The national banks were organized 

 without a single thought of the convenience of the farm. They are 

 organized properly enough to make money for their stockholders 

 through a service to business, manufacturing and transportation 

 interests. In favored communities I admit these banks may be 

 made to serve individual farmers of means and standing, but they 

 are not allowed to loan on farm mortgages even in their savings 

 departments, and in any case they do not till the requirements of a 

 rural credit system. Bankers themselves realize this, and admit 

 that the farm requires an independent system of its own through 

 which evidences of farm wealth may be standardized and 

 mobilized. These instruments of credit will be in the hands of 

 the farmers themselves through their cooperative bank, where 

 national banks loan to a farmer now, at a maximum rate, if need 

 be they would loan to his bank at a minimum rate because of the 

 combined security back of the bank bills. 



Cooperative credits, however, can render their best service only 

 in connection with cooperative productions, cooperative marketing 

 and cooperative buying. Develop your banks alone and without a 

 prompt and safe outlet for the funds, they will be helpless and 

 useless Their very success in gathering funds will be their sure 

 destruction. On the other hand the country needs cooperative 

 creameries, shipping stations, packing houses, cold storage ware- 

 houses, evaporating plants, canning factories, etc. In most cases 

 it would be a hardship for farmers to put up ready money enough 

 to build, equip and operate these utilities of cooperation; but 



