90 RUSSIA - CREDIT 



The amount of the loans on security of corn granted by the State Bank 

 does not only show an absolute increase, but a more rapid increase than the 

 other forms of credit allowed by the Bank. In 1908, it only formed 5.7 % 

 of the amount of loan and discount business done by the Bank ; the pro- 

 portion increased to 6.9 % in 1909 ; 12.4 % iv 1910 and 13 % in 1911. 



The good results attained by the efforts of the Government to develop 

 credit by means of intermediary institutions is seen clearly in the above 

 figures. No commentary is necessary in regard to them. 



We cannot give the details of all the business done by the intermediate 

 institutions; at the most we can say a few words in regard to the oper- 

 tions of the most important, the railways and the popular credit 

 institutions. 



The credit operations conducted by the railways on the security of 

 grain date from as far back as 1888, when the Government, in order to 

 regulate the carriage of grain and save the farmers from a fatal depend- 

 ence on local dealers, authorized the railways to grant loans on security 

 of the grain carried, on their own responsibility and out of their own funds. 



The loans increased in number considerably in the following years ; 

 in 1893 the State Bank came forward to assist with its credit ; in 1894 an 

 Imperial Order was issued for the special regulation of this form of credit. 



Between 1895 and 1908 the railways were the principal intermedi- 

 aries in the matter of these loans. They also established several elevators 

 and storehouses for the agricultural produce pledged. In recent years, other 

 intermediaries have somewhat modified the special position occupied 

 by the railway as credit institutions. Unfortunately, we have no figures 

 later than 1905, when the credit granted by the railways amounted to 

 56,988,000 roubles. 



Since 1903, credit on the security of grain has been given by 

 the credit co-operative societies, and, since 1906, by the loan and 

 savings co-operative societies. These various institutions give credit in 

 current account, but the lack of storehouses has considerably hampered 

 their action. Nevertheless, on January ist., 1913, 1,478 credit co-operative 

 societies opened a credit on the security of grain of 18,850,000 roubles, 

 of which 6,180,000 roubles were actually advanced. The corresponding 

 amounts in the case of 166 loan and savings co-operative societies, in the 

 same year, were 2,590,000 roubles and 1,009,700 roubles. 



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The decree of 1894 was issued with the idea that the loans would 

 be chiefly granted to producers; experience has not confirmed this ex- 

 pectation. 



I^et us first of aU consider the credit directly granted by the State 

 Bank. Since 1896, the loans to dealers have been the most important and 

 it is only since 1909 that the percentage of loans to producers has increased 

 somewhat, without doubt owing to the scheme for the foimdation of a State 

 Bank then prepared. 



