402 



THE AGRICULTURAL NEWS. 



DfcEMUEu 20, 1913. 



The demands of the second class of landowners — 

 the holders of larger properties — cannot, it is 

 believed, be easily met in this way — at least not at 

 first. For such landowners, a co-operative loan bank is 

 wanted — an institution whose object is to facilitate 

 land development, particidarly, in Colonies like British 

 Guiana, British Honduras, Dominica and St. Lucia. It 

 is very necessary to regard the two demands for credic 

 separately. And the reason why is obvious when we 

 come to cons;c]cr the methods of establishing the banks. 

 In starting an unlimited society on tho Riifteisen 

 system, the essential thing is to begin in a very small 

 way, to restrict the area of operations and the number 

 of the members of each bank. In a limited concern, 

 the larger it is the better. With the Raitfeisen system, 

 each bank is ;i unit, and the aim should be to increase 

 the number uf these units and eventually establish 

 co-operation amongst them in order that a central 

 bank may be formed, which will correspond very closely 

 to the lau ' ,-c lit bank for the larger proprietors. This 

 latter point however, affects the future more than the 

 present, and we may turn now more profitably to 

 a consideration of the conditions of establishment. 



In the forthcoming paper, already referred to at 

 the commencement of this article, a forward step has 

 been achieved through bearing in mind that methods 

 which prove successful in Western Europe do not 

 necessarily work under tropical ■■onditions. That 

 is to say, the application of principles must differ con- 

 siderabl}'. This being so, the writer has traced the 

 agricultural credit movement in India, in the French 

 and German tropical colonies and in the Tropics gener- 

 ally, in the belief that by investigating the methods 

 adopted under somewhat analogous social and geo- 

 graphical conditions in other places, important lessons 

 may be learnt which will help us to overcome the 

 difficulties with which wo are faced in the West 

 Indies. 



It is not necessary here to dwell upon the wonder- 

 ful strides that have been made in regard to mutual 

 credit in India, nor to treat at any length the subject 

 of the sufcesstul establishment of lund credit banks in 

 German West Africa, Tunis, (Queensland, Rhodesia and 

 in othci tropical or sub-tropical countries. But it is 

 necessary to dwell upon this fact, that the success in 

 India — in a country, be it remembered, offering far 

 greater social difficulties, and a far wider range of general 

 conditions than the West Indies — success in India has 

 been due not to Government money, but to ( Jovernment 

 organizatii.>ii. 'i'iiat is the bond which holds the 

 units togcLiici. In the West Indies there have been 



spasmodic monetary grants troui the (^lovernments for 

 purposes of capitalization, and although in the initial 

 stages of mutual credit banks, and indeed of the larger 

 limited banks. Government capital is desirable, perhaps, 

 absolutely necessary, it is not in this direction mainly 

 that the money ought to be regularly expended. To be 

 independent of (Jovernment capital should be the 

 bank's principal aim, because the favourable terms of 

 Government loans obscures the real commercial position 

 of the society. But in the direction of providing a staff' 

 of Registrars and inspectors — a special credit Depart- 

 ment — financial assistance may very well be given 

 by the .State. Benevolent control and energetic 

 stimulation are, indeed, the first essentials. Added to 

 this it is necessary to have uniform legislation, 

 St. Vincent has been the first to take any definite 

 step ill the West Indies in regard to legislation to 

 encourage the Raiffeisen credit system. The Ordin- 

 ance which has recently been passed, provides for uhe 

 registration and for the provision of capital to properly 

 accredited societies; but it does not appear to make 

 sufficient provision fur Government supervision, and for 

 that missionary work which will be necessary in the early 

 stages. In India, a great deal of help has been afforded 

 by 'hijDorary' promoters, and it may be expected that 

 the same interest will be shown in St. Vincent. It is 

 not likely, however, that the people themselves will 

 move, or if they do, will achieve satisfactory results 

 unless there is a benevolent but firm guiding hand. 



Whether the example set by the Government of 

 St Vincent will be followed by other Governments 

 remains to be seen. The step will no doubt be 

 regarded as an interesting experiment and the results 

 cautiously awaited before any extensive action is 

 taken. From the itlealistic standpoint, a general 

 Act for the whole of the West Indies, to lay 

 down the general principles on which credit sys- 

 tems are to be managed is desirable; though the 

 actual application of thein must be left entirely to 

 the local authorities. Unfortunately, under existing 

 conditions, this is impossible, and each island will 

 follow its own polic}'. It is to be hoped and trusted 

 however, that those Colonies which have agricultural 

 credit at heart will regard the subject in the light of 

 what it is — an economic, a scientific problem. The 

 self-centred attitude is necessary for the arrangement 

 of details, but with a problem like the present our 

 a more continental frame of mind is required at any 

 rate before the fundamental principles can be grasped, 

 and before provision can be made to ensure continuous 

 and co-ordinated develounient in the future. 



