AGRICULTURAL CREDIT 6 1 



One fifth of this credit was granted in the district of Prahova and large 

 sums in the districts of Buzan, Doej and Valcea. The other districts par- 

 ticipated only to a small extent. 



Bonds in circulation amounted on 31 March 1915 to 5,404,100 francs. 



The repayment of loans begins, as we have said, only after five years ; 

 that is to say payments were made in 1912 for loans of 1907, in 1913 for 

 loans of 1907 and 190S, and in 1914 for loans of 1907,1908 and 1909. This 

 delay of five years before first repayments are made brings about that 

 books are closed showing a loss which is only apparent. For the year 1915 

 it was 767,346.49 francs. 



§ 6. The Rural Co-operative Credit Societies. 



The first rural co-operative credit society was formed at Urziceni in the 

 department of Jalomiza in Januar>^ 1891. In subsequent years until 1898 

 the co-operative movement did not make much progress. Agriculturists 

 had no confidence in the societies. The large farmers and the usurers were 

 opposed to them seeing in them formidable competitors. The State was 

 completely indifferent. For all these reasons the co-operative movement 

 was slow in these first years. Only twenty-five rural co-operative credit 

 societies were founded from 1891 to 1898. 



In 1898 Spira Haret was nominated Minister of Religion and he devoted 

 himself to the development of the co-operative movement. He charged some 

 masters of primary schools to teach the peasants the usefulness of co-opera- 

 tive societies and the need there was for them. From this year the co-opera- 

 tive movement developed, and when the law on co-operative societies 

 was passed in 1903 there were already more than 700 of them. All were 

 of the Schultze-Dehtsch type — that is to say they were limited liability 

 societies. 



The law of 1903 caused the co-operative movement to enter into a new 

 phase. The proposed law as presented to parhament contained the follow- 

 ing principles : i) the limited liability of members ; 2) the State s minute in- 

 spection of the management of the societes. These principles were however 

 atteimated by parliament, and the law which has been in force since 28 

 March 1903 contains the following : 



i) All co-operative societies, whether credit or other, are legal corpo- 

 rations. They may be formed on the basis of either unlimited or limited 

 liability. Those of the first form enjoy however a preference under the 

 law which declares them exempt from taxes. Co-operative societies founded 

 on the principle of hmited liability are obliged to .subscribe a capital in shares 

 of at least a thousand francs ; those founded on the principle of unlimited 

 Hability can be formed without any capital in shares. 



2) All the co-operative societies are subject to the inspection of the 

 Agricultural Credit, that is to say of the Central Bank which was a section 

 of the Agricultural Credit and is obliged to hold an inspection at least once 



