"As I have intimated, the Commission has recommended that legislation for local credit associations, to be formed by groups of small farmers, be left to the States. This seems to me to be a wise suggestion. Such associations are not needed in many of the States. They are most needed in the southern States where there are a great many poor farmers owning or renting small farms. It is highly desirable that they be released from their dependence on merchants. The formation among them of credit associations with unlimited liability of members might result in a credit foundation on which loans could be made. The unlimited liability feature would not be so distasteful here, perhaps, as elsewhere, since their liability is already unlimited. Cooperation is the essence of these enterprises. Its growth will probably be slow and it will be retarded by the fact that two races are living in the South side by side. Public opinion will have to be educated. Pains should be taken to place before the people the best forms and methods of organization, and the States should be induced if possible to consider and take up necessary legislative action prerequisite to the formation of these associations."