286 Cooperation in Agriculture 



within a small district and that, therefore, the members 

 are personally known to one another ; 



"(3) That the members being mutually responsible, 

 it will be to the interest of all members to keep an eye upon 

 a borrower and to see that he makes a proper use of the 

 money lent to him ; 



" (4) That, in like manner, it is to the interest of all 

 members to help a member when he is in difficulty ; 



"(5) That the borrower is required to find sureties or 

 give other collateral security for the repayment of the 

 loan; 



" (6) That the borrower binds himself to apply his loan 

 to a specific purpose which will bring in a monetary return 

 sufficient to enable him to repay the same when borrowed, 

 to pay the interest charges, and to leave a profit to him- 

 self." 



A brief discussion of the leading foreign cooperative 

 credit systems may be helpful in the consideration of 

 cooperative credit as a means of meeting the needs of 

 the American farmer, but as the question is receiving con- 

 sideration from various official and unofficial sources, no 

 attempt will be made to apply the foreign methods to 

 American conditions or to suggest the steps that may 

 be taken to make the American financial system better 

 adapted to our rural credit needs. 



THE RAIFFEISEN BANKS 



The Raiffeisen banking system is designed to meet the 

 credit needs of the small European farmer. The system 

 is founded on a code of moral and educational principles 

 to which are added the unlimited liability of members, 



