1914] Farm Credit Conditions in a Cotton State 67

should be required to make small regular deposits. Thus, capital
would be derived both from ‘stock subscriptions and deposits,
though deposits should ultimately be the larger source. The requirement
 of deposits would incidentally promote thrift among the
locals. This central bank through its executive committee would
pass on the affiliation of locals, decide the credit £o be allowed to
locals, and in general serve as a clearing house to accomplish a
virtual pooling of‘the funds of the whole system. It would also
audit accounts, Each local, however, should be absolutely free to
apply loans in such ways as its members might approve.!* Real
coöperation is essential to coöperative eredit.
Lewıs H. Haney,
University of Texas.

* Those who are informed on coöperative credit organizations will recognize
Ihe similarity of this plan to the one used successfully in India. "The chief
differences are the chattel mortgage security feature and the use of existing
banks instead of specially created joint-stock “district banks.”

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