ORGANIZATION OF AGRICUI.TURAI, CREDIT 43 



unproductive funds placed at their disposal by the Royal Delegation (i) 

 and 2,000,000 pesetas by the Bank of Spain. The last 2,000,000 pesetas 

 of shares will be at the disposal of the ordinary banks and agricultural asso- 

 ciations of a general character, which must subscribe at least 100,000 pe- 

 setas each in order to form part of the directing committee. If a sum re- 

 main available the Mortgage Bank of Spain will be authorized to subscribe 

 shares for its amount. 



The Central Fund in question will have the character of a co-operative 

 association for it will do business only in the interest of agricultural associa- 

 tions and with them exclusively. With this end in view capital will bear 

 a fixed interest which may not exceed a total of 6 per cent. This interest 

 once paid, any remaining profits will be divided as follows : 50 per cent, to 

 constitute a reserv^e fund and 50 per cent, to the syndicates pro rata of their 

 o])erations with the Central Fund. From the time when the reserve fund 

 becomes equal to half the subscribed capital only 10 per cent, of profits 

 will be paid into it compulsorily. 



The Central Fund will constitute a legal person and act quite inde- 

 pendently in all its business. It will be administered by a directing council, 

 comprising a chairman freely nominated b}^ the government whose post 

 will be permanent (2), a representative of the posiios, a representative of 

 the Bank of Spain and one of the Mortgage Bank, all three freely chosen by 

 these establishments, and a delegate of each of the following bodies which 

 has subscribed a minimum of 100,000 pesetas — General Association of Stock 

 Farmers, Association of Agriculturists of Spain, Catalan Agricultural Insti- 

 tute of San Isidro, Bank Leo XIII, and Association of Cultivators of Sa- 

 ragossa. Every other association, being strictly co-operative and agricul- 

 tural and general in character and subscribing the aforesaid minimum, can 

 have a delegate in the council. 



The Ministers of Finance and of Fomento will exercise supervisory 

 functions over the Central Fund. The former will have the higher super- 

 vision of its economic activity which he will determine, and the latter 

 will be concerned with the whole work of agricultural organization in- 

 cumbent on the Central Fund in virtue of the objects for which it is 

 instituted. 



The directing committee will fix the bases of the rates of interest, the 

 terms granted for repayment and the security on which the Central Fund 

 will make loans. 



All documents and books, bills payable on order, and discount or cre- 

 dit books and bills which the agricultural associations issue in the course 

 of their relations with the Central Fund will be exempt from the stamp duty. 



The Central Fund of Agricultural Credit keeps for five years, as the 

 decree instituting it expressly states, an experimental character. After 



(i) See our issue, already cited, for March 1915, pages 10 et seq. 



(2) Bj' roj'al decree Count de Montomes, delegate of Spain to the general meeting of the 

 International Institute of Agriculture, has been nominated chairman of the Central Fund 

 of Agricultural Credit. 



