LOANS GRANTED BY THE STATE BANK ON SECURITY OF GRAIN 93 



ducing the cost of transport. Elevators were to be established in the prin- 

 cipal centres of production not for purposes of gain, but in the first place 

 to serve the interests of the grain farmers. 



These proposals were approved by the Pan-Russian Assembly of Com- 

 merce and Industry at Nijni -Novgorod in 1896, and by a Government Com- 

 mission in 1899; unfortunately, the war with Japan and the serious internal 

 disorders following it delayed their being acted on. 



In 1909 and igio the abundant harvests again brought the problem 

 of credit on security of grain into special prominence. The lack of 

 storehouses was in fact one of the most serious obstacles to the extension 

 of this mode of credit, which the elevators estabUshed by the railway de- 

 partment or by private initiative only met in a very insufficient degree. 

 Thus, in November, 1910, the Government resolved on the estabfishment 

 of a system of State elevators, including 178 of them. 



The State Bank entrusted with the carrying out of the programme 

 began by deciding on the construction before 19 16 of 84 elevators of a total 

 capacity of 58,800,000 pouds. An amount of roubles was deducted from 

 the profits of the Bank and set apart for this construction. 



The General IManagement of the business of the elevators is under the 

 chief supervision of the Department of Finance and entrusted to an 

 Elevators' Committee and the Board of the Bank. The Committee, 

 consisting of the President and some high officials of the Bank, with whom 

 are associated experts and, in some special cases, various other persons, pre- 

 pares the estimates, establishes the rate of loans, examines the local pro- 

 \dsions for the classification of grain and decides several other matters ; 

 however, the final decision on most points is reserved to the Board of the 

 Bank. 



The regions of production have been divided into districts in which 

 the technical management is entrusted to a Local Committee composed 

 of the President and the Inspector of the Branch Bank, Grain Inspectors 

 (officials for the examination and classification of grain) and, when certain 

 special matters are dealt Vv^ith, some other persons. 



The Local Committee, with which are associated the representatives 

 of the zemstvos, the municipahties, the commercial exchanges and agri- 

 cultural organizations, forms the Advisory Commission of the district. 

 This Commission, which is intended for an office of public supervision 

 of elevators, gives its opinion year by year on the rate for the loans, the 

 methods to be followed in classifying the grain and the degree of hum- 

 idity or impurity that may be tolerated. It fixes the normal type of the 

 grain in accordance with samples obtained from the local markets and 

 examines complaints in regard to the classification made by the grain 

 inspectors. 



In charge of each elevator there is a superintendent assisted by grain 

 inspectors. 



Not less than 25 pouds may be stored, nor less than i,ooo pouds, or 

 about a railway truck load, if the grain is to be kept separate. The 

 depositor may demand that his grain be cleaned. 



