RURAL CREDITS 769 



The difference serves to cover the expenses of administration, to 

 constitute special funds created in the interest of all the members of 

 the society, as well as for the creation of reserve funds and for the 

 gradual extinction of the debt. The landschaft generally renounces 

 its right of calling up the money it lends, but the debtor can always 

 repay the money borrowed. Generally this repayment takes place 

 by gradual extinction, which is often even obligatory for a certain 

 proportion of the debt. The sums so repaid must be considered at 

 the same time as reserves in case of possible losses to be incurred. 



The public readily accepts the bonds of the landschaf ten, although 

 the rate of interest is often as low as 3^ per cent. The bonds have 

 also always been well received on the national market, and in order 

 to open an international market for them certain landschaften in 1873, 

 with the permission of the government, founded a central landschaft 

 for the Prussian provinces with headquarters at Berlin. The land- 

 schaften that now form part of this union are allowed to issue pro- 

 vincial bonds and also bonds of the central landschaft. In issuing 

 these last, however, they are bound to observe certain rules as to the 

 methods of valuing the lands. 



The bonds of the central landschaft are well received on the 

 exchanges, where they have almost the same standing as the Imperial 

 and Prussian bonds. 



247. CAN CO-OPERATION REMEDY RURAL CREDIT 



CONDITIONS ?' 

 BY LEWIS H. HANEY 



When we come to examine the chances for successful personal 

 credit associations in Texas, it seems that the negro population must 

 be left out of consideration for the present. In most parts of the state 

 the negro would be excluded from organizations of whites, and it is 

 more than doubtful if negro credit associations could succeed. Also, a 

 part of the poor white farmers are beyond the reach of co-operation on 

 account of their migratory habits and thrif tlessness. It is the writer's 

 well-considered opinion that fully 10 per cent of the white tenant 

 farmers of Texas are hopeless cannot get good credit by any means. 



Some of the adverse conditions affecting the majority of the 

 whites are as follows: (i) There is a large element classed as "poor 

 whites," a shifting and shiftless group; 5 per cent of the native white 



1 Adapted from the American Economic Review, IV, No. i (March, 1914). 

 61-66. 



