BEGmNINGS OF THE CO-OPERATIVE MOVEMENT IN AGRICULTURE 45 



In societies in which the liability is limited by shares or fixed at a 

 certain amount, when the reserve fund amounts to ^/g of the share capital, 

 the surplus profits shall be divided among the members ; in no case, 

 however, shall this dividend exceed 5 % of the nominal value of the share. 



(B) Proposed General Regulations for Agricultural Co-operative Societies. 



We pass over those portions of the rules that offer no special interest 

 as corresponding almost exactly with those in force in the majority of exist- 

 ing co-operative institutions. Some of the regulations, however, deserve 

 mention : those, for example, relating to the members and the business of 

 the societies. As regards the members, the following rules are proposed. In 

 order to be a member of a co-operative society, it is necessary 



ist., to be of age ; 



2nd., to have one's habitual residence in the district mentioned in the 

 deed of foundation of the institute ; 



3rd., to be a land holder or farmer or occupied in work connected with 

 agriculture ; 



4th., not to be already registered as member of a similar association 

 in which the liability of members is unlimited ; 



5th., not to have been declared bankrupt or interdicted ; 



6th., to have the approval of the Board of Management. 



The member must submit to the decisions of the board of manage- 

 ment ; he may, however, in case of opposition, have recourse t© the Com- 

 mittee of Supervision, with which the ultimate decision rests. 



In regard to business operations it must first of all be observed that the 

 co-operative societies contemplated are defined in the bill as agricultural 

 credit societies the object of which is to obtain for the farmers of small 

 and medium sized farms the money they require for their work, as cheaply 

 as possible. 



The co-operative societies may conduct the following operations : 



1st., Grant short loans exclusively to members for periods that must 

 not generally exceed one year. They may, however, in exceptional cases, 

 grant loans for up to five years. 



The loans must always be justified by utility and the exclusively agri- 

 cultural character of the work for which they are obtained. No loan may 

 be granted on the mere signature of the borrower. 



2nd., Discount bills passed exclusively by members for purposes of 

 farm work and farm necessities ; 



3rd., Get bills rediscounted, after signature of them, at a central co- 

 operative society or a credit institute ; 



4th., Undertake collections or payments in behalf of members : 



5th., Receive deposits from members and open current accounts for 

 them, at interest or not ; 



