UKGlNNlNGS UF THE COOl'JvKATlVK MOVEMKNT IN AGK1CU1,TUKK Jy 



agricultural crises : namely the association of the farmers and their co- 

 operation in the struggle against their common enemies. 



Let us now see how the co-operative movement in agriculture in Egypt 

 has developed and what is its present position. 



§ 2. The beginnings of the co-operative movement. 



Let us say at once : the co-operative movement in Egyptian Agricul- 

 ture is still in the embryonic stage; its development, by no means easy, 

 when the mental conditions and the general situation of the peasant farmers 

 is considered, has not yet received the highly important sanction of Govern- 

 ment, without which it must remain permanently paralysed, but which 

 we believe will be given before long. 



The Egyptian co-operative movement is closely connected with the 

 work of Omar Lufty Bey. He may be reasonably considered the father 

 of co-operation in Egypt. In 1908, Prince Hussein had instituted a Commiss- 

 ion to act on behalf of the Khedivial Societ}' of Agriculture and study 

 a bill and regulations for agricultural co-operation in Egypt. Of this 

 Commission, LuftA^ Bey was a member and he was to found at Cairo, two 

 years later, the first Egyptian co-operative credit society for small traders. 

 Although this was not a co-operative society exclusively agricultural in 

 character (i), we think it well to give a brief account of it and the results 

 it has attained, so that the reader may have some idea of the general condi- 

 tions under which co-operation as a rule will have to live and" thrive in Egypt. 

 We glean our facts from M. Ribet's interesting work above referred to. 



The credit co-operative society, founded at Cairo by Lufty Bey, was 

 founded under the form it was compelled to take of an Egyptian limited 

 liability society authorized by the Khedive. In order to preserve the 

 co-operative principle unchanged, it was authorized to introduce the 

 following provisions into its rules: ist. The shares are personal and only 

 transferable with the consent of the Board of Management; 2nd. Loans 

 are only granted to members, except when there are available funds in 

 excess of the requirements of the members themselves. 



The society has a capital of 175,000 frs., fully paid up. The shares are 

 100 frs. each. The expenses in connection with the foundation of the so- 

 ciety came to 1,500 frs. During 191 1, it granted loans for a total amount 

 of 525,000 frs., at 7 U, %. The loans were granted for six months and the 

 amount varied generally from 250 to 1,000 frs. The society discounts its 

 bills at 5 % at the Deutsche Bank. It is only exceptionally that the loans 

 are renewed and always on condition of repayment in instalments of i<{ of 



(i) This co-operative society, in its first working year, granted special loans to certain 

 agricultural associations. Such loans, as we shall see hereafter, are now granted by the 

 National Bank.. 



