34 INFORMATION REI^ATING TO CO-OPERATION AND ASSOCIATION 



" 2. The Undersigned Further Agrees, to pay to said Trustees or their 

 assigns at stated intervals each month not less than .... per month for 

 each animal so purchased by him until the aforesaid sum and interest is 

 fully paid. 



"3. The Undersigned Further Agrees, to breed the cows and heifers 

 so purchased to a registered sire of the same breed. 



" 4. The Undersigned Further Agrees, to secure the pa>Tnent of 

 said sum and interest and the perfomance of this agreement, by a-promis- 

 sory note and a chattel mortgage to said trustees upon the animals so pur- 

 chased and the following additional security .... 



" 5. The Undersigned Further Agrees, To accept the animals that 

 are purchased for and delivered to him by the trustees hereunder and pay 

 for the same as herein provided. 



" . . . . Animals will be labelled at time of purchase and delivered 

 to part}^ ordering same at point designated by trustees. Upon deHvery 

 the purchaser shall pay to the Trustees the original cost of the animals 

 together with the expense of purchasing and delivering of said animals . . . ". 



2. NORTH CAROI^INA RURAI, BANKS. — The Country Gentleman. Philadelphia, 9 Decem- 

 ber 1916. 



North CaroUna was the first state in the Union to estabhsh, by legisla- 

 tive enactment, rural credit unions. Short-term loans are made to farmers 

 at six per cent, interest. 



These rural banks are modelled on the country banks of Northern 

 Italj^ and loans are restricted to purposes of acquiring land and making 

 farm improvements. The initial North Carohna society was organized at 

 lyowe's Grove, Durham Country', on 20 January. Since then six sim- 

 ilar clubs have been created. The marketing division of the State De- 

 partment of Agriculture controls the unions and a superintendent has been 

 emplo3^ed as whole-time officer. 



A recent monthlj^ statement as to the condition of these banks makes 

 this composite showing : membership, 252 farmers ; depositors, 38 ; pay- 

 ments on shares, §1,763.20; deposits, $1,654.68; loans, §3,203.05; number 

 of borrowers, 35 ; rediscounts, $1 290.00 ; cash in banks, $1,597-89 ; 

 total resources, $4,883.70. 



While the chief aim of the unions is to escape paAanent of exorbitant 

 rates of interest on loans for farm improvements, co-operative effort in 

 other fields is encouraged. The Uowe's Grove Union reports a purchase of 

 114.3 tons of fertilizers for a cash payment of $3,050.02 The saving effected 

 by the members of the union by bu3dng co-operativeh- instead of at the 

 prevailing community prices was $667.43. Drowning Creek, another credit 

 union, reports " the purchase of a carload of cottonseed meal co-operatively 



