No. 4.] RURAL CREDITS. 135 



interests of the rest of the people and must be supplied through 

 special laws and means. 



The shortcomings of American agriculture are traceable to 

 the facts that the farmers have not combined their resources 

 with the view of helping one another. Their greatest need is 

 more co-operation. This can be brought about only through a 

 more extended and intelligent use of the association. The 

 associational form of organization is the best for agriculture in 

 every one of its phases, whether it be for business, finance or 

 social life. The problem would be simplified if this were kept 

 in mind. The legislative steps that might be considered are — 



1. An amendment of the national banking act so as to permit 

 any national bank that confines its credit facilities to members 

 to be organized as an association without capital stock. 



2. An amendment of the banking act of each State so as to 

 permit any kind of bank that confines its credit facilities to 

 members to be organized as an association without capital 

 stock. 



3. A law by the nation and in each State to legalize for 

 associations whatever is lawful for corporations, i.e., a regu- 

 latory law. 



4. A clause in such law to permit combinations among 

 farmers' associations or small producers' or consumers' associa- 

 tions. 



In the first place my desire is that the associational form of 

 business shall be extended throughout the communities of this 

 great country of ours and perform a service that we cannot 

 perform in any other way — that is so great we cannot begin 

 to comprehend its benefits and effects. The mutual life insur- 

 ance companies are highly successful examples of this form of 

 organization. Take another example, the Associated Press, which 

 I will compare to the Landschaft in its operation, because it does 

 not enrich itself, but it performs a service. The Associated Press 

 of the United States, which, by its organizations puts the news 

 down at our doors every morning for a small sum of money, per- 

 forms an enormous service but does not grow rich; it does not 

 accumulate a great capital, but it serves all the newspapers and 

 makes their, business of publication possible. That is service 

 that is performed by an organization, and it is comparable to 



