IX FORMATION RELATING TO CREDIT 45 



4. The payment of the cost of operati(nis of fanuin.u, ranching, dairy 

 farming or the Hke ; 



5. The pa}-ment of the cost of preparing lands foi cultivation. 



.\11 loans are guaranteed by the society. Each member is liable up to 

 the limit of the stock he holds and for whatever he borrows. The safety 

 of the joint security provided under the Ac*- enables the society to borrow 

 from the bank at 6 per cent. The money thus bf)rro\ved is relent to the 

 'armer at 7 per cent, on his note, and the society's security" consists in 

 the animals, machinery, goods or personal property which he purchases 

 wholly cr partly with such loan, and of the offspring or products ari.sing 

 out o* the animals or goods so purchased. 



The notes covering these loans mature not later than 31 December of 

 the year in which they are made. Thus the Rural Credits Act saves both 

 the banker and the farmer the inconveniences incidental to frequent renew- 

 als of these notes. When however the loan is for machinery or live stock, 

 or other object from which early returns cannot reasonabh' be expected, 

 the loan may, with the approval of the directors of the society', be 

 renewed from year to 3-ear. 



Some scepticism which existed was proved unfounded, when the co- 

 operative spirit of the farmers in the district caused the formation of the 

 St. Andrews Rural Credit Societ}', having fifty-two members, in the rural 

 municipalities of St. Andrews and St. Clements. The headquaiters of 

 this society are at .Selkirk. 



The first application for a loan was approved by the directors of this 

 society on 6 Jxme, and on 17 October about 25 loans, of the approximate 

 value of S550 each, had been made. The amount of loans varied from 

 S150 to $2,000, and the}' were for practically every purpose for which money 

 can be borrowed under the Act except for the purchase of seed. Seventeen 

 were for breaking up land. 



We re])roduce a typical application for a loan : 



" I, John William Brown, of the Municipalit}' of St. Clements in' the 

 Province of Manitoba, hereby apply to the St. Andrews Rural Credit So- 

 ciety for a loan of Twelve Hundred Dollars ($1200) under the terms of the 

 Rural Credits Act, to be used for the following puri)oses : 



For purhase of cattle S 300 



For purchase of Machinery " 50 



For expenses of putting in and taking off Crop . . " 350 



For clearing and breaking 50 acres. This part I wish 



renewed " 500 



:> 1200 



and I agree to pay the said loan on or before the thirty-first da)- of Decem- 

 ber 1917, with interest at the rate of seven per cent, per annum from the 

 dates the same or parts thereof are received to date of payment. 



John W. Brown 



(Signature) 

 June 8th 191 7. 



