CREDIT SOCIETIES.

Auckland Star, Volume LXVI, Issue 121, 24 May 1935, Page 8

CREDIT SOCIETIES.

JAPANESE SYSTEM.

OUTLINE BY DR. KAGAWA

POVERTY OF THE FARMERS. An outline of the activities of the various co-operative organisations in Japanese villages was given by Dr. Tovoliiko Kagawa, the Japanese social worker, in an address to the provincial conference of the Fanners' Union this morning. There was a full attendance of delegates, who received Dr. Kagawa with enthusiasm. "We have 08,000,000 people in Japan living on four islands, of which the cultivable area is almost similar to that of Xew Zealand," said Dr. Kagawa. "We have f>,"(H),000 families of farmers, which on an average contain between five and six members. This means that there are over 30,000,000 people living on farm land." Half the agricultural land in Japan consisted of rice fields , , the remainder being dry farms. Seventy per cent of the farmers were tenants. There were almost no sheep or cattle. It was to these factors that the poverty or Japanese farmers was due. The Japanese had eventually been forced to start a variety of co-operative movements, based on a German model. These associations had now reached a total of 140,450, with a membership of 5,200,000, Ninety per cent of these members took part in the credit co-oper-atives. The system of credit associations had been started under the Government subsidy of 00 million yen, and to-day it covered 95 per cent of Japanese villages. Many Types . of Co-operatives. Among the types of co-operatives which flourished were producers', consumers' and marketing organisations, in addition to the credit institutions. Other bodies undertook life and health insurance, the money collected in premiums being to rural participants in credit schemes]! Public utility co-operatives undertook euch works as the provision of hydro-electric power, with the result that in each village canning factories and other industries were established in a small way. These villages, which became almost selfcontained, needed no Resistance from banks and other financial institutions in the cities, as a banking system was run in connection with the credit cooperatives. The profits were divided among the members of the association, or sometimes they were distributed anions the poorer sections of the community. Dr. Kagawa cited the example of one association to which he belonged, which , lent out 230.000 yen last year, and made a profit of 7000 yen. "This profit was divided into 50 yen lots and given to the poor members as capital," he said. "If they return it later we will be satisfied, but if they cannot we will not mind." " Cannot Afford Cows. ,, Dr. Kagawa also explained various development* in farming which were being introduced in Japan to combat the prevalent poverty and the .mountainous nature of the country. "We cannot afford cows," he declared, "because a cow eats more than a man. Tt takes aii acre to feed a cow. Good cattle are very expensive, but goats are very cheap, so we are now importing goats. A cow will eat only 40 per cent of the weeds, but a goat will eat everything." Xut-benring trees were being , planted by the co-operative societies. The leaves would provide food for stock, while the nuts would feed the farmers, containing as they did valuable oils, proteins and other foods. Another factor in this tree planting was that it tended to prevent flooding in mountainous country. In conclusion, Dr. Kagawa outlined the efforts being made to induce farmers to grow fruit to be canned in the villages, and to keep bees as a sideline. "We want to have a diversified agriculture," lie declared.