90 EXPEEIMENT STATION RECORD. 



author points out the need of legislation in most of the States that will permit 

 the formation and protection of nonprofit cooperative associations, and discusses 

 some of the legal questions involved in the formation, financing, and management 

 of such organizations. Illustrations are given showing how the principles of 

 cooperation are applied to certain agricultural crops, such as animal and plant 

 improvement, the handling of grain and dairy products, cotton, the distribution 

 and sale of crops, and the cooperative purchase of supplies. The application of 

 the cooperative method to rural credit, irrigation, the telephone, and insurance 

 is also briefly discussed. A lengthy bibliography is appended. 



Farm credits, J. R. Dos Passos ( XJ. S. Senate, 62. Cong., 3. Sess., Doc. 1001, 

 1913, pp. 8). — This document discusses briefly the Credit Foncier system as oper- 

 ated in European countries, and recommends that such a system be established 

 in the United States under a similar plan; that is, Congress would by special 

 act provide for the incorporation of a loan and mortgage company, the incor- 

 porators being named in the act to represent each State. The authorized capital 

 stocli suggested is $200,000,000, to be subscribed for by the public, and the 

 company being allowed to begin business when $30,000,000 is subscribed and paid 

 in. One-fourth of the existing capital would be held as a special reserve, and 

 the remainder used in commercial and other financial operations and in loaning 

 money on imperishable products to farmers. A central oflice would be located 

 at Washington, D. C, and branches established in the capital of every State 

 and subagencies in other principal cities. The primary object would be to give 

 to farmers and other borrowers the same facilities for borrowing money at a low 

 rate of interest as are now enjoyed by other business enterprises located in 

 money centers. The plan as outlined involves government supervision. 



The details of the plan are fully described. 



[A land bank for South Africa] (Affr. Jour. Union So. Africa, 4 (1912), No. 

 6, pp. 808-810, fig. 1). — The nature and scope of the operations of the Transvaal 

 Land Bank are briefly described, and the establishment of a union bank is 

 noted. 



The purpose of these banks is to aid deserving farmers in financing and devel- 

 oping their farms. The Transvaal bank has within the last 5 years furnished 

 loans to 5,6G1 persons to the amount of £2,105,000, the security being farm prop- 

 erty worth over £6,000,000. It is noted that the bank has not only enabled 

 farmers to pay off mortgages by advancing money to them at reasonable rates, 

 but it has brought down the general rate of interest on farm property. 



Ninety million dollars loaned by State to farmers, W. M. Duffus (Co- 

 operative Farmer, 5 (1913), No. 7, p. 3). — This article presents the results ob- 

 tained from a special inquiry as to the history of State loans to farmers in 

 Australasia and 8 States in the United States. 



It is shown that more than $90,000,000 have been loaned by the New Zealand 

 and Australian governments to their farmers. The essentials ascribed by the 

 author for successfully operating such a system of loans to farmers are summa- 

 rized as follows: (1) It should be self-sustaining. (2) Loans should be made 

 only for special purposes, such as the purchase of land, paying off mortgage 

 debts, and making necessary improvements on the farm. (3) Loans should be 

 limited in amount to one-half, three-fifths, or two-thirds of the market value of 

 the land, exclusive of buildings. (4) Repayment should be on the amortization 

 plan. (5) The aggregate amount of loans to any individual should be limited, 

 preference being given to applications for loans of small amounts. (6) The 

 loans should run for 20, 30, or 40 years, the borrower having the privilege to 

 repay them at any time. (7) The funds should be obtained by the sale of State 

 bonds and the interest charged the borrower should be just high enough to pay 

 the interest on the bonds, the cost of administering the system, and the 



