1919.\ CANE FARMERS AND CO-OPERATION. 51 



-even if you leave the Society you are still responsible for debts if con- 

 tracted whilst you were a member. 



LOANS TO MEMBERS. 



When the Society has borrowed money— it may be $500, ?il,000, 

 $2,000, you must remember it is for all practical purposes your own 

 money, and you must take care to lend it out properly. This you do 

 through your own Committee. Only members of the Society can 

 borrow and each has to state in writing what the money is wanted for. 

 The Committee decides whether the use for this purpose is likely to be 

 profitable and only lends the money if quite satisfied. It is here that 

 you can exercise the control impossible to a distant bank. In each 

 Society you are all neighbours, know something of each other's affairs, 

 can judge whether the purpose stated is true and the use of the money 

 likely to be profitable, and, most important, you can easily see whether 

 the money is used for the particular purpose stated. If you find it is 

 not being properly used, the loan can, and should be, promptly recalled. 

 At the same time the Committee, knowing the circumstances of each 

 one can extend a loan if sickness, bad season, diseases or pests or other 

 good reason really prevent the borrower from repaying it at the 

 promised time. 



RESERVE FUND. 



Build up a good reserve fund out of entrance fees and profits as soon 

 as you can. With this to fall back on, you can later reduce the rate 

 of interest you charge members. 



GENERAL. 



There are other points I might dwell upon but they are all matters 

 of less importance. What I want you to remember particularly are 

 these : 



Admit as members only people of good character. 



Attend your general meetings. Understand what you are doing ; 

 ^vhat sums the Society is borrowing ; for you are all personally liable 

 for their repayment. 



Select good men for your Committee, because you entrust to them 

 the lending out of the money you have borrowed, money for which 

 you are responsible. 



Help the Committee in seeing that loans are used for the purposes 

 stated. 



Be prompt in your repayments of any loans and if impossible for 

 special reasons for you to repay at the time an instalment is due, go to 

 the Committee at once and explain why you cannot carry out your 

 promises. 



If you keep these few principles steadily in mind and work honestly 

 with one another, your Society will be a success, and you will find it a 

 real help to you at the time when you need money to carry out some 

 useful purpose. Moreover, you will find the Credit Society a means of 

 making the cane farmer more prosperous, and so increasing the welfare 

 of the sugar industry of the Colony and of the Empire. 



