534 Report S.A.A. Advancement of Science. 



Lord Selborne^ s earnest desire to promote the interests of agri- 

 culture iji the Transvaal as a productive industry. His Excel- 

 lency's a])pointment of a Commission to enquire into expediency of 

 establishing an Agricultural Bank, is the most recent evidence of this 

 desire. 



Bankijig Facilities iti South Africa. The various joint stock 

 banks in South Africa most enterprising generally. The extension of 

 branches been distinctly progressive, so that the existing banks 

 completely cover the field, which apparently fully occupied. Many 

 branches in some of the small towns do not pay. South Africa's 

 record as being better banked, on basis of its white population, than 

 any country in Europe, and even than the United States of America. 

 A Table was prepared to show the relative position, in this respect, 

 at a glance. 



Expenses of Majiagement of South African Banks. The expense 

 of conducting the business of a bank a very serious matter. Statistics, 

 compiled by the writer, show that the cost of running the various 

 South African Banks varies from about 50% to 68% of the gross 

 profits. 



Rates of Interest. 6% per annum is, either by statute or custom, 

 practically the legal rate of interest throughout South Africa ; and 

 should thus be the minimum rate charged by a prospective local 

 Agricultural or Land Bank. There is, apparently, an intimate 

 connection between the rate of interest paid on Government loans and 

 the ruling rate of interest charged in the open financial market of 

 any given country. The relative ratio would appear to be, roughly, 

 as two to one against the individual. A Table was presented to 

 illustrate this point. 



Conclusion. The object of collecting and commenting upon the 

 data given above has been to bring together, in proper perspective, 

 the salient features of Agricultural or Land Banks ; to consider their 

 various methods of working ; and to glance briefly at the countries 

 in which thev operate. The subject has been treated, in some 

 respects, from the general standpoint ; but particular care been 

 exercised to give the matter a direct local bearing. This has been 

 attempted by reviewing some of the financial and currency episodes 

 in the history of South Africa, and also by considering the actual 

 present circumstances of the country. The experiences and failures 

 of the past may safely guide us to a wise decision when deliberating 

 upon certain of the financial and economic problems that confront us 

 to-day. 



