lOI 



this security is so well established that in Germany Law Courts 

 actually allow trust moneys to be paid in to them on deposit.* 



The Raiffeisen system of agricultural loan banks has worked 

 wonders in Germany and in other European countries. It remains 

 to be seen whether it can be successfully adopted in the West 

 Indies. But our Agricultural Societies in Jamaica have shown 

 such good examples of co-operative effort in many ways, that we 

 are somewhat sanguine. 



We have lately been directing the attention of our people to the 

 system, and I believe that no less than three banks will be started 

 during the present month. It is a hopeful sign, full of promise 

 for the New Year.f 



COTTON : SELECTED SEED FOR 1905.+ 



As announced in the Agricultural News (Vol. IV. p. 72), it will 

 not be possible to obtain reliable cotton seed from the United 

 States this year, as the planters in the Sea Islands have resolved 

 not to sell their seed ' to communities outside of South Carolina.' 



This means that in order to carry on the cotton industry in the 

 West Indies the planters will have to depend on seed to be obtained 

 locally. 



Although the situation, at first sight, might be regarded as dis- 

 couraging, there are good grounds for believing that the promising 

 cotton industry started in these colonies will not materially suffer 

 from the action taken by the planters in the Sea Islands. Thanks 

 to the efforts made last year by the Imperial Department of Agri- 

 culture, there is already existing in the West Indies a supply of 

 Sea Island cotton seed as good as, if not better than, the crop lots 

 produced in the United States. All that is necessary is to make 

 a rigorous selection of the best seed and, after having it carefully 



* There is another form of Loan Bank which has also done good work in Europe, that 

 is the 'Credit Associations' of Schulze. Schulze requi ed unlimited liability, selection 

 of trustworthy officers, and sounl rule-; hut the keystone of hi- system was the com- 

 pulsion to save, regularly and steadily. Every member is expected to take one share 

 and one share only, lie is nof allowed to take more, in order to prevent t le association 

 from being captured by capitalists. The value of the shares was fixed very high, at 

 first about £50, paid up by instalments vhich may be very small. With the help of the 

 capital in course of formation, of savings deposited, and of the credit which the small 

 capiial iind unlimited liability of a larg • number of members, the associations are in a 

 position to raise all the money required. The interest was at first high. These bank^ 

 are not particular about t le object of the loan, nr the person of the b' rrower, but they 

 demand security in the form of mortgages, pledges, sureties, bills. The loans may be 

 large or i-mall, according to the security offered, but must be for short terms— for three 

 mouths, with renewal for another three mouths occasionally permitted. Business is 

 carried on by a Committee of three who are elected and paid a salary, with a commissi n 

 ad ed. To check the Committee ad to audit these accounts a Council of Control of 

 nine members is also annually elected. It is considered well to have as large and as 

 mixed a constituency as possible, consisting of members of all callings, whose blending 

 will equalize supply and demand of money, security and risk. The Credit Associations 

 aim at high dividends by the largest possible extension of their bus ness. This leads to 

 speculation for the sake of gain and very often ends in disaster. 



t [These banks started in the parish of Manchester are not RaifEeisen, but rather on 

 the lines of Schulze's Credit Associations, except that the liability is limited to the 

 aiDO'.nt of one share J 



X Reprinted from the Afjricultvral Netvs, Vol. IV, p. 97. 



