894 EXPERIMENT STATIOX EECORD. 



1913-14, PP- i8+Sl). — This report shows the number of societies, membership, 

 working capital, interest, rate on loans and deposits, and profit and loss. A 

 brief statement relative to the principal problems arising during the year is 

 included. 



Report on the working' of the cooperative societies in the Central Prov- 

 inces and Berar, 1914—15 (Rpt. Work. Coop. Soc. Cent. Prov. and Bcrar, 

 1914-15, pp. 3+12+40). — This report gives the number of societies by types, 

 their membership, capital, rate of interest, receipts and disbursements, and 

 profit and loss. 



Report on the working of the cooperative societies in the Punjab, 1915 

 (Rpt. Work. Coop. Soc. Punjab, 1915, pp. S+3+11, tables i5).— This reiwrt 

 gives the number and types of societies, receipts and disbursements, profit and 

 loss, rate of interest, and a brief review of the progress in the organization and 

 supervision of cooperative societies. 



How to fi.nance the farmer: Private enterprise, not state aid, M. T. Hkr- 

 KicK and R. Ingalls (Cleveland: Ohio Com. Rural Credits and Coop., 1915, 

 pp. 58). — The authors discuss the rural credits movement, early methods of 

 stimulating farm mortgages, building and loan associations, landschafts, bond 

 and mortgage companies, and rural cooperative banking. 



In calling attention to the difference between the landschafts and the build- 

 ing and loan associations they claim " that the building and loan as.sociation 

 serves both investor and borrower members ; it finances itself by their savings, 

 avoids the u.se of its credit, makes its loans in cash, and is purely cooperative. 

 The landschaft, on the other hand, serves only borrowers ; it has no need of 

 savings, deposits, or working funds coming from any source, from either mem- 

 bers or non-members, since it operates entirely uix)n credit and makes its loans 

 in debentures, while it is neither an a.'^.soclation nor a company; nor is it co- 

 operative, although it imposes mutual liability on members. In spite of these 

 fundamental differences, however, there are points of resemblance ; both are 

 thrift institutions and both are protected by a safeguard which prevents them 

 from being encumbered with obligations to outside parties. . . . Nobody join.s 

 the landschaft except applicants for loans, and membership ceases upon repay- 

 ment of the loan; but liability as a member continues for a statutory period, 

 usually two years, after retirement. . , . 



"A marketl similarity appears between the methods of accumulating the 

 sinking fund in a landschaft and the capital of a building and loan association. 

 Both come entirely from members through obligatory periodic payments made 

 with the effect, if not in the spirit, of thrift ; but there the similarity ends, for a 

 landschaft is the creditor, while the building and loan association is the debtor, 

 of members in respect to its funds, with the landschaft holding exactly a con- 

 verse position in respect to the outside world." 



It is also claimed that the agricultural States should be divided into districts 

 for issuing debentures for loans secured by massed mortgages on farm lands 

 and guarantiefl by the unlimited, collective liability of the borrowers. 



The following legislative steps are considered necessary for the proper or- 

 ganization of rural credit: "An amendment of the National Banking Act so as 

 to permit a national bank that confines its credit facilities to members to be 

 organized as an association of any form without capital stock ; An amendment 

 of the banking act of each State so as to permit any kind of bank' that con- 

 fines its credit facilities to members to be organized as an association of any 

 form without capital stock ; an enabling and regulatory law by the nation anti 

 by each State, legalizing for economic associations whatever is lawful for cor- 

 porations; a clause in such laws to permit combination among farmers' as- 

 sociations and associational banks, among a.ssociations organlzetl for selling 



