Among our farmers the interest in coöperation is especially keen. The federal government has just established a separate bureau of the Department of Agriculture to aid in the study, development and introduction of the best methods of coöperation in the working of farms, in buying, and in distribution; and special attention is now being given to farm credits—a field of coöperation in which Continental Europe has achieved complete success, and to which David Lubin, America’s delegate to the International Institute of Agriculture at Rome, has, among others, done much to direct our attention.
PEOPLE’S SAVINGS BANKS
The German farmer has achieved democratic banking. The 13,000 little coöperative credit associations, with an average membership of about 90 persons, are truly banks of the people, by the people and for the people.
First: The banks’ resources are of the people. These aggregate about $500,000,000. Of this amount $375,000,000 represents the farmers’ savings deposits; $50,000,000, the farmers’ current deposits; $6,000,000, the farmers’ share capital; and $13,000,000, amounts earned and placed in the reserve. Thus, nearly nine-tenths of these large resources belong to the farmers—that is, to the members of the banks.
Second: The banks are managed by the people—that is, the members. And membership is easily attained; for the average amount of paid-up share capital was, in 1909, less than $5 per member. Each member has one vote regardless of the number of his shares or the amount of his deposits. These members elect the officers. The committees and trustees (and often even, the treasurer) serve without pay: so that the expenses of the banks are, on the average, about $150 a year.