SOLARIS SCRIP.
"Returning again, Fillmore, to the financial operations of the farm;
with such a volume of business to transact, how do you manage to get
along without having recourse to some local bank?"
"To a large extent, we do our own banking business. Our treasurer, has
his office in the cash room of the store. In this room we have a large
vault, containing a fire-proof safe of the latest type. The books,
records and funds of the company, are all kept in this safe. For our
commercial business, we have selected one of the principal banks of St.
Louis as our bank of deposit. A large percentage of purchases for the
store and farm are made in that city, which is also a market for the
bulk of our farm produce.
"The farm company has an office near the bank, where some member of the
executive committee, or other representative of the company, may be
found every business day of the year. It is the duty of this agent to
attend to purchases, consignments and sales; also to have charge of all
business transacted through the bank of deposit. Taking care, to keep
the amount of available funds up to the ten thousand dollar mark. To do
this, it sometimes becomes necessary for the company to issue drafts on
the bank of deposit for thirty, sixty and ninety days. These drafts are
accepted by dealers, for purchases made in Chicago, Cincinnati,
Philadelphia or New York, the same as cash.
"As borrowers, our only dealings have been with you. In these dealings,
at times when much in need of more capital, we have not been required to
pay interest. Now, having returned our borrowed capital, and being free
from debt, we have grown more independent and self-sustaining; therefore
more averse to the idea of paying interest to any one. We are convinced
by past experience, that all necessity for incurring interest-bearing
obligations can be avoided. The use of Solaris Scrip in all
intercolonial transactions, has proved a most potent factor in helping
us to arrive at such a fortunate conclusion. By its use, ninety per cent
of our business can be transacted on a cash basis, without using one
cent of actual cash. In addition, we can use it as a basis on which to
borrow. To illustrate! Suppose we need ten thousand dollars to replenish
the stock of goods in the store, pending the sale of products on hand.
We borrow that amount from the insurance fund, the sum being part of the
accumulated profits on sales at the store and restaurant. We then
replace this sum by scrip of the same face value. This scrip, to the
pensioner or beneficiaries, is the same as cash. When they have drawn
and spent it, the debt is cancelled. No interest is paid. The store and
restaurant become the clearing house, through which these drafts against
the resources of the farm are liquidated. In the same way, temporary
loans can be made from other funds, whenever it is for the benefit of
the united interests of the co-operators to do so.
"How is it possible, you ask, to keep perfect control of such a large
issue of scrip, with a certainty that all in use is genuine?
"That is a matter which is easily regulated by our simple system of
issue. In the first place, we print the scrip here at Solaris, from
plates which, when not in use, are kept in the safe, in the custody of
the treasurer. The five denominations issued, are as follows: five, two,
and one dollar bills; which, together with the fifty and
twenty-five-cent, fractional-currency scrip, make up the list. Every
denomination has a numbered series, of ten thousand. Each series, with
the stubs attached to the bills, is bound in book form. When issued,
each stub remaining in the book, will show the date of issue, serial
number, and amount of the issued bill. When cancelled, the bills are
returned to the book, and again attached to the stub to which they
belong. At any time, an examination of the books of issued and unissued
scrip in the hands of the treasurer, will give the amount outstanding.
The co-operators are requested to keep a record of the serial numbers of
the scrip they hold or handle, and to report the loss or destruction of
such as may happen. A history of the loss is attached to the stub, and
the amount of the bill carried to the profit and loss account of the
company.
"If the genuineness of any piece of scrip should be questioned, a
comparison with the stub should show the same date, number, amount and
serrated edges, made by the peculiar pattern of the perforator belonging
to that series. If so, the bill must be genuine. As time passes, we are
more than ever convinced of the wonderful advantage gained by the use of
this scrip. Our people find it much lighter and more desirable to carry
and use, than the same amount of gold or silver coin; therefore they
frequently request to be allowed to exchange coin for scrip. In summing
up my replies to your questions: it seems probable, from the constantly
increasing volume of business, that the company will soon be obliged to
take a charter that will authorize it to do a complete banking
business."