96 



The presumed success of the government loans has greatly 

 encouraged those who have for long been desirous of attempting 

 the establishment of people's banks on the model of that mar- 

 vellous and admirable system invented by the genius of Raiffeisen 

 in Germany more than fifty years ago. 



In the first place it was most encouraging to find so many 

 persons of high standing in the community ready to serve on the 

 local committees for the benefit of their neighbours. Our expe- 

 rience in the branches of the Agricultural Society had already 

 shown this spirit of devotion on the part of some of the landed 

 proprietors, ministers of religion, and others, but here, where the 

 need was evident and pressing, there was a universal exhibition 

 of willingness to co-operate in assisting the Government freely 

 and without recompense. By so doing they naturally increased 

 the security of the loan, and helped to keep the rate of interest 

 low. 



Again, it was noticed with satisfaction that it was considered 

 feasible to grant loans to the owners of only 5 acres of land if it 

 was all under cultivation. 



I would call attention to special points in the precautions taken 

 by the Government : — (l) Loans were only granted to those who 

 were recommended by the local committee, who from personal 

 knowledge believed that repayment in full could, and would be 

 made. (2) The loan was granted for a specific purpose. (3) The 

 local committee, or the government agent, by personal supervision, 

 took care that the loan was properly applied. (4) Repayments of 

 loan were not asked for until such time had elapsed as wa* 

 necessary to allow the loan to become productive. (5) The power 

 of at once calling in the loan, if repayments were not punctual. 



These precautions are similar to some of the rules laid down 

 by Raiffeisen, but they do not go so far — they cannot reach the 

 very poor man, nor do they make the repayment so secure as in 

 his banks. 



I do not intend to enter into the question of Planters' Banks, 

 my subject is People's Banks. For them I do not advocate the 

 formation of government loan banks. I think the system of 

 Raiffeisen in every way, both from an economic and an educa- 

 tional point of view, more suited to our needs. I will therefore 

 now indicate the main and essential features of that system as 

 portrayed in the writings of Henry W. Wolff,* and, as far as 

 possible in his own words. 



* (1) People's Banks : A Becord of Social and Economic S^iccess, 2nd Edition. 

 London, P. S. King & Son, 7s. 6d. 



(2) Agricultur.il Banks: Their Object and Their Work. Agricultural Banks 

 Association. London. Is. 



(3) Village Banks, or Agricultural Credit Societies for Small Occupiers, Village 

 Tradesmen, etc. How to start them — How to work them — What the rich may 

 do to help them. With Model Rules and Model Account Sheets added. Londom, 

 P. S. King & Son. 6d. 



(4) A People's Bank Man%Ml. P. S. King & Son 6d. 



