298 RURAL NEW YORK 



plexity of the factors that make up rural vahies and 

 the lack of standardized and often of an organized 

 system of business management, the city bankers, un- 

 familiar witli such conditions, were often warranted 

 in their anti])athy toward rural loans on anything ex- 

 ■ept the very best farm real estate. The farmers on 

 clie poorer lands have always experienced these finan- 

 cial difficulties most acutely. It is a phenomenon as- 

 sociated with depressing rather than with expanding 

 values. 



Credit unions may now be formed by a group of 

 individuals under the supervision of the State Super- 

 intendent of Banks with shares of stock of a par value 

 not to exceed $25, to liquify and make available the 

 rural credit facilities. Loans to exceed $50 must 

 be secured in a manner to meet the approval of the 

 loan committee. Such a group is in a better position 

 to deal with the larger banking institutions than is 

 the average individual. The farmer with his income 

 often available only at long intervals, and with the 

 necessity of making long-time investments in equip- 

 ment and improvement, is especially in need of the 

 best sort of credit facilities. 



Tlie Federal Farm' Loan Bank is now more 

 vitilized for the provision of cooperative rural credit 

 than is the Credit Union system. This law was 

 passed in 1916, and Xew York State is administered 

 from the regional bank at Springfield, Massachusetts. 

 Under this plan, a group of farmers may form a fed- 

 eral farm loan asst)ciation and liecome stockholders in 

 the stock of the Federal Farm Loan Bank. The min- 



