10 SPAIN - CO-OPERATION AND ASSOCIATION 



societies forming these on economical terms with the resources they need 

 in order to begin their activities ; 4) to regulate the movement and 

 employment of the capital of associated institutions destined to afford 

 agricultural credit, by providing for its investment in the case of some 

 societies and rendering it available for others ; and 5) generally to study 

 conditions favourable to the development of agricultural credit in the 

 country. 



The chief transactions of the fund may be classified as follows : 



a) the granting of limited credit to agricultural institutions enrolled 

 as adherent to the association ; 



b) the acceptance of savings deposits ; 



c) the opening of current accounts bearing interest ; 



d) the granting of loans on security. 



Agricultural institutions which have adhered to the Association of the 

 Agricvilturists of Spain will enjoy a credit to be carefull}- fixed b}' the man- 

 agers of the fund, in accordance with the solvency of their members hav- 

 ing collective liability, and especially in accordance with their importance 

 to social agricultural enterprise. Institutions which have obtained credit 

 of this description will undertake : i) to give the association a commer- 

 cial guarantee signed by three members of the institution chosen for this 

 purpose among those having an open account ; 2) to remit to the institu- 

 tion a quarterly account of business done ; 3) to allow any inspection of 

 books and accounts which the association or its delegates may make, 

 whenever such inspection may be considered useful. 



• Such credit once granted, the institutions may circulate the amount 

 accruing to them by bills on the association expiring in one year, each 

 having a maximum value of 20 per cent, of the balance of credit, or by 

 any other commercial instrument chosen by the managers. Sums with- 

 drawn from credit accounts will bear a fixed annual interest of from 3 14 

 to 6 per cent. The capital in shares of the Credit Fund is variable. It 

 has been fixed initially at a minimum of 250,000 pesetas, represented by 

 500 contributions of 500 pesetas each. At first and for the first five 3^ears 

 of the fund's activity these contributions will be exacted as parts of a foun- 

 dation fund, and will be entirely assigned to the operations of the societies. 

 They will gradually be converted into shares. This share capital may be 

 subscribed, in whole or part, by means of the personal acceptance of pecu- 

 niary and individual responsibility for the discharge of the fund's obliga- 

 tions. The members will be collectively liable for these contributions 

 which will be equivalent to the foundation contributions paid in specie. 



The subscribed share capital of the fund surpassed from the outset 

 its initial minimum, for contributions amounting to 497,500 pesetas were 

 received at the time of foundation. Subscriptions have since continued 

 and in May IQ16 their amount was 614,000 pesetas. 



Since the fund has exi.sted onl}^ for some months, data as to its work- 

 ing and development cannot be obtained ; but it may be taken to have 

 rendered great service to the individual as to the collective members of 

 the association and to agriculturists generally. 



