Newspapers / Wilmington Morning Star (Wilmington, … / July 1, 1923, edition 1 / Page 6
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The Credit Union for State I Is Explained by Miss Berry (By MISS H. M. BERRY) Address before North Carolina Press Convention at Blowing Rock, N, C., June 20th, 1923. For many years and through several Administrations we have heard much talk by governors, near-governors, politicians and nu’merous others of helping the farmer, and particularly the tenant farmer, to a better method of Hying. Many panaceas for Ms va rious ills have been offered—Federal Farm Loan banks, land banks, coloni sation schemes, state loans for the purchase of homes, etc, all of which reminds one of Mark Twain’s remark about the weather: "I have heard many people discuss the wtfather in,de tail and at great length, but I’ve never seen anybody do anything about it ■as yet.” Opinion in the United States has about settled down to the cjnc;ii sion that handier and more accessi ble credit is one of the most crying needs .of the day and that the shoe is found to pinch most painfully in the. province of agriculture. This is ■ertainly true in North Carolina, as >ur state is so largely rural, upwards of 80 per cent; we have such 11 large percentage of tenant and near-tenant farmers; and we have such a vast area of unutilized farm lands which (are capable of tremendous returns ir (properly handled; but which under our present system is yielding no profits, to any one. Thoughtful citizens are beginning to view with alarm the steady drift of our farm boys and girls to the cities as it is realized fthat oUr country's very existence , is threatened when the farms are desert ed and the soil is left barren. It may surprise you to know that millions of people in the ^United States. and i doubtless .hundreds of thousands in North Carolina, have no money in any bank. The great majority of these ere without legitimate credit resources. ISrr.ie one will say that there are farmers who can borrow, mone.y at (fair rates Of interest. Yes,, man of : substance can always obtain credit (anywhere, whatever their calling; but lit is to be feared that the number of (farmers so privileged is only small, /if not insignificant. An American (banker of note, travelling in Europe several years ago, was greatly struck with the very large number of farmers ’promissory notes • held by the Bank of France, which had dis counted them. Some of them were.for large sums, the majority for small, down-to exceedingly moderate amount? •—even a single dollar.. “How is it” he said to himself, “that here there .are these millions and millions of francs of farmers’ ‘paper,’ which means fructifying money, when in the United States there is not one farmer’s promissory note so held that I am 'aware of?" The reason undoubtedly Is that the American farmer has not ; jyet learned to mobilize his financial '’resources and work in cooperation .With his fellows, thus gaining the [(■united strength which is the basis kof all big business in the world today. IfTir-g..world of organization, the aver (jage American farmer is trying to “go lit jMone” and is being gradually crushed between the “upper and nether rjrtillstone.”- In other words, our farmers have not yet found Raif feisen, for we believe that when the teachings \nd spirit of Raiffeisen per meates the) group pf citizens needing email credits in North Carolina, which constitutes the great majority of our people, that a North Carolina gerate. than even our most vivid imagination can now picture, will set a new pace til world history. Origin of the Credit Union f Who is this man who developed the Idea of the credit union or eoperative (banking which has done so much for the agricultural interests of Denmark. Germany. Italy and other European countries? In-1849 Frederick William DEtaiffoisen, mayor of Flammersfeld, Germany, started , an organization for the purpose of loaning money to pea sants to make it possible for them to acquire livestock on the installment payment plan. The money was fur nished by some of the more well-to-do of his constituents and lacked the ele ment of self-help. In 1 854 he estab lished a credit society at Heddesford, Which, in addition to lending to pea / sants.performed various other social service functions. Again the funda ' mental credit union purpose and prin ’ ciple—self-help—was lacking. Anoth er man, Schultze-Deiitzsch, was work able out a similar idea in artother parti 3of Germany among wage workers in Cities. After his second attempt, jltaiffeisen studied the methods of tSchulze-Delitzsch and in 1889 reorgan ized his nevv society, adding to the (original purpose cooperative purchas ing at wholesale of those commodities '/used in common bv the members of the society. This marks the beginning of the rural cooperative credit move ment.: ■ : Spread in um w orm. # The credit union idea spread very ,-rapidly in Europe and indeed into !Asiatic countries. Italy was the second .•country to adopt it and no wit is 'eaid they do one-third of the bank ting business of this country. Austria! followed in 1885. Ireland under the inspiring leader ship of ISr Horace Plunkett, has over 200 cooperative banks. Cooperative credit was introduced into France Jr. 1892. Before 1914, the movement had spread extensively in Russia and India ai»d in 1909 Japan had 1.886 unions, Jth a membership of 170,000. - Development in America 0\lowing the movement to this ,ndry, we find Alphonse Desjardins „Levis in the Province of Quebec, afiada, the father of the credit union x North America. .M; Desjardins was rst interested from the standpoint of •iminatlng usury and helping the Sail botrovyerS' to obtain reasonable, ierest rates. He spent his life or ,Ailing peoples banks from one end >f the province to the other. The ■st statistical year book for. the ovince of Quebec indicates that the al annual business of the DesJardins iks in the province is now in ejc k of fifteen (pillion dollars, an in crease of. three millions in a, single year. In speaking of this work Des ajrdins said: /THowever important it may be to ■event the7 farmer and the working .n from falling into the clutches of usurers, it is of higher importance p educate and -enlighten these same armers and workingmen so that ley may be in position to protect lemaelves; to teach them to manage own business so that they may kelr athlng^Shoes *1,00. at Peterson * -Adv-. become thrifty and more valuable members of the community. In this high conception of social duty lies the real reward to those who have labored to help the movement for the Peoples Banks. Success for the young de mocracies of this continent depends upon the prosperity and worth of life to the millions of workingmen who I compose them.” I Bringing Raiffeisen to North Carolina | In 1913, the American commission to (investigate Rural Credit agencies?was i appointed by President Taft and made 1 an investigation of various type? of ! credit union development in Europe. | Mr. John Sprupt Hill of Durham rep I resented North Carolina on this com ■ mission and he describes very vividly [ in a speech before the North Carolina ! Conference for Social Service his first impression of the work of the credit union:, 'he said: "What was the main purpose of the great journey four years ago of the ‘American commission, composed of rep I resentatives from 36 states of the I American commission, composed of rep I resentatives from 36 states of the ' American union and six provinoes of I Canada, in* visiting European coun I tries at great expense .to themselves | and the government? It was to 'find ! Raiffeisen.’ shall never forget the j day that it fell to my lot to find Raiffei ! sen in the village of Vignova, at a j meeting of the members of an Italian j credit union composed of about 300 i farmers and their wives. A wealthy bank president, who was an ex ! United States bank examiner, said to [ me, as we were beginning to recover : from our astonishment and as we were commencing to realize Raifleisen’s real valiue to social service: It is worth a ! trip of ten thousand miles, all the way [from Colorado to see this little thing do its wonderful work.’ "There it was in the -center of the business and social life of the country neighborhood: All of its work was done in a little .room 12 to 15, furnished with a large table, a small desk and a half dozen books. And yet this little co-operative bank was doing a busi ness of over $50,000 per year and had over $12,000 in deposits. It had out standing short term loans to farmers amounting to over $13,000, all secured by personal endorsements and bear ing 6 percent interest. On the day we examined this credit union, it had ISO loans, nearly all of which were made to tenant farmers for the purpose of buying fertilizers and farm supplies. 'Service' not 'Profits’ was the watch word of this little democratic union, yet it had a surplus of $3,500 an<T from every standpoint was a sound and pros perous institution. Just 25 years be fore our visit to this little village in northern Italy these people were ground down under the heel of the usurer. The last cent had been squeez ed out of an improverislhed population by crop lien prices and chattel mort gage oppression.” Upon his return to the United States, Mr. Hill became very definitely interest ed in the possibility of bringing Raif feisen to North Carolina and to his influence and co-operation may be di rectly attributed the enactment of the Co-operative Credit Union law by the North Carolina Legislature of 1915, which Is generally regarded as one of the most satisfactory laws yet enacted in this country. There are just two or three ques tions I would like to attempt to an swer for you| today in connection with the credit*- ijnion and they are: hat AViS a credit union? How is it or ganized? AAilhat can an extended use of it mean to North Carolina agricul ture? Wkat Is a Credit Union? The- credit union is based on the theory that the banking system needs supplementing by the development of a plan which will speciall-e in the smallest individual units of saving and, at the same time, concern itself with problems of small' credit,' collectively of great importance, but individually so small that existing banking facili ties cannot cope with them except at substantial loss. As the lack of legiti mate credit always results in the prac tice of usury, it may be said that the credit union, seeks to promote thrift and to eliminate usury. The assa chuMsetts Credit Union law defines a credit union as "a corporation formed for the purpose of accumulating and in vesting the savings of its members and making loans to them for provident purposes. Mr. R?y H. Thomas of the state department of education writes of the Lowe’s Grove Credit Union (Dur ham countq): "The union is based on the principle of self-help and the finan cial strength of the community is mobi lized for the use of those who'live in it.”. Professor E. C. ranson of the StatBe University, who is now study ing rural credits and other rural prob lems in Europe gives the following definition of a credit union: "Credit unions are self-financing, mutual aid organizations which encourage and re ward thrift and capitalize the charac ter of the membership. They aj-e not organized to make profit but to'guar antee low rates of interest to mejmbers of meager means.” Further, Mr. Bran son says: “Psually the landless tenant or homeless man is without credit of any sort, or he must pay impossible rates for money. -They need to es tablish their own credit, that is to say, financial and moral trustworthiness, upon t'he basis of thrift and character. There is indeed no other basis of credit than ability and willingness to pay what is due exactly when it is due.” The credit union has been called a "bank in miniature.” It is a bank scaled down to the possibility of uni versal service. It is in no sense a proposed substitute for some existing system of banking. t is a Ipossible supplement to all existing agencies for promoting thrift and creating credit resources, it seeks to make depositors of millions who do not now deposit and • to bring credit facilities to more mil lions who, when^the demand for credit presses, must now have recourse to charitav when It is available or to the usurer, wlro is generally available. This field is wide open. To an amazing ex tent it is still virgin soil. nernoa or urbanization Credit unions are authorized by state laws hnd in North Carolina jurisdic tion for purposes of examination and control is vested in the state depart ment of agriculture. The first step in the organization of a credit union is a petition or an application for a charter addressed to this department. After this ts, filed, a hearing is held or some investigation made to de termine the fitness of the particular group in questing to organize and sue Office of K. C. HUNTER A BRO., 4^h,*ect» AN ENGLISH HOUSE OF DISTINCTIVE DESIGN I 'I 1 2,. C. Mwr e sjjj & boot fcvMtela I * I t fmyr PL000. WU) % This house avoids the commonplace In design; in every detail it shows unusual character; it la a house that would stand out in distinction from its neighbors. . , „ . Yet there is nothing freakish about the design, it is throughout, in the best taste and, at the same time, it is unusual and distinctive. It follows the old English type. The architects have so handled the roofs that a pleasing variety in form and outline is obtained. The entrsnce gable has the roof eaves brought • down to the tops of the first story windows, and the plain stucco walls of this gable form a fitting setting for the heavy oak doorway. The half timbered gable gives an interesting variety. The walls of the house are finished in stucco, preferablv white; the roof is slate of various col ors and "sizes; the chimney is hard burned red brick, and the timber work, window frames, etc., should be stained a weathered gray, preferably quite dark This would give a pleasing color scheme that would be quite in keeping with the edsign. All windows are of the casement type. K SKOruOrtBOCTCIHI i! The fplans of this house present & livable ar rangement of good size rooms, the result of thor ough sigrdy on *the part of the architects. The necessary coat closet and the very desir able togpt room are both provided near the en tranc dgpr, where they are most convenient. A srfAll stair hall gives entrance to the living room, dining room, and provides the stair way. Steps front the main stair platform to the kitchenjfwith a door) eliminate the service stair, way. hi On ffie secdnd floor three bedrooms are well laid ougi A large bath is provided. There are plenty $jC closets. cfililar is provided under the entire house, and hee^ is the heating plant, the laundry, and such. Thlfffihouse should have a lot with 75 feet frontaggi to give it proper setting. Cost^&bout J9.800. Comjiiete working plans and specifications of this hcSse may be obtained for a nominal sum fro* tlssj Building Editor. Refer to House A-86. 4 cessfully conduct a credit union. If the result of this investigation is favorable to the petitioners, they are so notified and an organization meet ing is held, by-laws adopted and* of ficers elected consisting of a presi dent, secretary, treasurer, board of dl-’ rectors, a credit committee and super visory committee. A Completely Co-operative Organisa tion It is interesting to note that the credit union is cpmpletily co-oupera tive. Membership is predicated upon the subscription to at least one share of stock and the payment of an intial installment thereon together with an entrance fee. Each member has a single vote, whether his holdings in the credit union be great or small. Non-members may make deposits but they have no voice in the management and no rights to borrow. The money is used for loans to the members and all resulting profits are divided into Interests on deposits and dividends on shares unless the members may de termine to devote the profits to a more rapid- accumulation of reserve re sources. The management is entirely with the membersihip. Safeguards The credit union is safeguarded by being under the supervision of a state department and its accounts are in spected at least annually and niay be closed for cause. The supervisory committee is a seA>nd safeguard. This committee may, by unanimous vote, re move any or all officers, members of boards or committees, a prerogative which is seldom exercised. Another substantial safeguard is that officers in the organization cannot borrow, which removes the temptation which has been the ruination of so many banks, name ly, the manipulation of the funds by those in control for personal profit. Loans are repayable In small install ments, payable at frequent intervals and the purpose of the loan is closely scratinized. The North Carolina law provides that loans can be made only for productive purposes. No appreciable paid-up capital stock Is required as a condition necessarily precedent to doing business. This is fundamentally important. Many union have started with as few as seven original members. The largest credit union in American started with an initial capital of $26, which now has assets of well over a million. \ To go into further details as to or ganization and management would perhaps grow tiresome as it is a sub ject that might well ran into volumes. I have said enough however, to indi cate to you the simplicity of the or ganization, the safeguards which have been thrown around it, the fundamen tal democracy of its aims and the fios-. sibilities it 'has for reaching that great majority of our people who most need to be reached and given the boost which will enable them to eventually hely themselves. It is putting into practice the very essence of Christiani ty itself and in Europe leadership ih many of their credit unions, has been taken by the village prieBt or preacher, A Typical North Carolina Credit Union The credit unioA Is not an expe.ri TfT" ment 1n North Carolina, for, gfhanks to the activities of Mr. Hill {if Dur ham, Mr. Camp, who was formefl^' with the state department of agriculture, and others, there now exists f£gn- this state 30 such organizations anU! many of these have a marvellous sjjpry to relate. That of Lowe’s Grove M Dur ham county is typical and W^fl give you an Idea as to the prae tic a/J work - lngs of these organizations whjki may appear small when regarded individual ly but collectively, if organised in every farm community and aiming the industrial workers of North Gjfrollna, would total a huge sum in mljiiey, as well as work a power for righteous ness such as would stagger thjffmagi nation to contemplate. Mr.' if-6y H. Thomas of the state departrfjjfent of education describes the Lowe'fsj Grove union as follows: . “That there is a need for satisfactory and convenient farm credit fj-tbilities and that the proper^use of thesjji|fac11i ties will Improve the financial^* intal lectual and social welfare of farm ing comipunity is demonstrated’»tin the work of the Lowe's Grove CredlfjjUnion, Dunham county, North Carolines From a position of financial serfdonf;,| bear ing a burden of 38 percent cquilt im posed by the crop lien, sup^|f mer chants' system, this group of:f North Carolina farmers, In a period jpf six - 1 ' -—t - Bathing Shoes $1.00 at I’et|ifson & Rulfs.—Adv. II years, has been enabled to H®e to a plane of financial Independent in buy ing and selling where they please, j Along with better bufiness has come a better school and church, improved 1 (Continued on Page 12) The Truth About Eczema and Piles "Thousands and thousands of people,” says Peterson, of Buffalo, "are learning every week that one 35-cent box of Pe terson's Ointment will abolish eczema and banish piles, and the grateful let ters I receive every day are Worth more to me than money.” "I had eczema for many years on my head and could not' get anything to stop the agony. I saw your ad and got one box and I owe you many thanks for the good it has done me. There isn’t a blotch on my head 'now and I couldn't help but thank 'Peter son, for the cure is great.” Miss Mary Hill, 420 Third avenue, Pittsburgh, Pa. "I have had itching ptles for 15 years and Peterson's is the only ointment that relieves me, besides the piles seem to have gone.” A B. Huger, 1127 Washington avenue, Racine, Wis. Use Peterson's Ointment for old sores, salt rheum, chafing and all skin dis eases. Druggists recoijimend it. r IJI f See our BRICK pnd get prices before plac ing your ordefs. In position to make prompt shipments. I . Roier Moore’s Sons & Co. It . * .. 125 Princess Street | Telephone No. 154 m : W. B. TiORPE & CO. ■pf w-. ■. ft Dealers in l; Cement, Lime,| Plaster, Shingles, Laths and Genepd Builder’s Supplies * Hard, Stekra and Domestic Coal "nu W'-rf' ^lse, Corner Water and Ann Sts. Right in the heart of the city, we have for sale a new modern bungalow'with furnace and large lot- Owner ( will sell at a sacrifice or will accept trade for country / property. . No. 1108 Grace street is a six-room bungalow with ! lot 40x110 and alley. We have this priced at the old r figure for quick sale. Financed. „ i We have an 18-acre farm not far from the city which / is' offered at reduced figure. ■ * ! . No. 213 Ann street should sell quickly at the price we are naming. Don’t let somebody get this bargain ahead of you. No. 317 Grace street has seven rooms, two baths, fur- r nace and every convenience. Excellent location for J i boarders. ■ You do not have the chance every day to purchase a ‘ “House Beautiful” home. We invite your inspection ofv No. 204 N. Sixteenth street. It has six rooms and.fur nace. Very liberal terms. We have an ideal location for manufacturing plant in southern section of the city. Three adjoinng city blocks with belt line running through them- This prop - erty could be sub-divided to advantage. • If you have $100 cash, talk to us about a neat little home in the southern section of the city; balance of payments can be arranged on easy terms. No. 810 Princess street has 10 rooms and is in good condition. Suitable for two families if desired. Will sell on easiest of terms or will accept pther property in trade. That beautiful home on the southeast corner of Six teenth and Chestnut streets is certain to appeal to. you if you want a comfortable home with large lot and flow er^. We are naming a reduced price for short while. No. 217 N. Seventeenth street is a comfortable six room bungalow that can be bought by making a nominal cash payment. Balance on terms. Just had listed a good bargain near the Isaac Bear school. See us about this. Elegant lot on Fifteenth street, Winoca Terrace. Only i a few lots in this popular section. / That lot on the Market street road in the Weeks j sub-division, including greenhouse and small dwelling, / is offered at cost for quick sale. JAMES & JAMES, Inc. Southern Building Phones 163-164 REAL ESTATE—INSURANCE: LIFE, FIRE AND LIABILITY—BONDS—RENT WRIGHT’S LIST The foundation of all wealth ia real estate- The home owner gives his wife and family comfort, inde pendence and the best there is in life* We have a brick store on Red Cross street, between Sixth and Seventh streets for sale. Good street, busy . location. Will gladly tell you more about this place. On west side of North Twelfth' street, No. 204, be tween Chestnut and Grace, is a new, modem six-room bungalow. Deep lot for chickens, garden, etc. Owner moved away and wants to sell. Ann street, between Fifteenth «nd .Sixteenth, five room bungalqw, price low, terms easy. A location rap idly growing and improving. See the new homes here. No. 710 North Third street, largelot, house has 10 rooms. This can be bought for less than $5,000. See this place and ask us for particulars. A real bargain on South Front street, between Church and Castle,, If you want a real estate bargain, ask us about this, it ( ft • ■ Ndrl41df Sotath Second street, tt* Comfortable home - where yoh cahhe happy, whilerent money pays for it. Ask us terms and price- : . 1j i f $< WRIGHT & SON \ t \ . REAL ESTATE SINCE 1890 *£***• f 1 y?*&■' Phones 342 and 2293 *£ ■ * 124 Princess Street ESTIMATES ON ALL-KINDS OP BUILDINGS AND jCONSTRUC - TION WORK GLADLY M FURNISHED. MEMBER nnj RfunoiiNlbiUtf WALTER CLARK General Contractor P. O. Drawer 824Telephone 1728-J I SELL YOU SERVICE! On the Job 24 hours a day---365 days in the year TTrn'nri'i'l'I'l'i'IMTi'H'H'l iTl'l'irril'i r'T"l 'J.1 I'll1'! 'll Read Star Classified Ads
Wilmington Morning Star (Wilmington, N.C.)
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July 1, 1923, edition 1
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