62 RUMANIA - CREDIT 



3) A Central Bank was formed for the co-operative societies, as a 

 section of the Agricultural Credit, and gives credit to the co-operative cre- 

 dit societies. Since 1906 the Central Bank has been separated from the Agri- 

 cultural Credit, and works as an autonomous institution. The law lays 

 down conditions which the co-operative societies must fulfil in order to 

 obtain credit from the Central Bank. These are as follows : i) a society 

 must accept as members only the peasants of the village in which it is 

 situated ; 2) the rate of interest it receives will be fi.'ced by the central 

 bank ; 3) 10 per cent, of the net profits will be paid into a reserve fund. 

 All these conditions show a desire to favour co-operative societies having 

 unlimited liability. 



At first the Central Bank was, as we have said, attached to the Agricul- 

 tural Credit ; i) because the latter had a very large capital at its disposal ; 

 2) because it had experience in the credit business transacted with peasants. 



Later, in 1906, when the Central Bank was separated from the Agricul- 

 tural Credit, the special law prescribed that its working capital should be 

 supplied by the Agricultural Credit. 



Of recent years there has been a movement towards forming district 

 federations. Four of these have been formed ; one at Dumbraveni which 

 unites ten co-operative societies and has a capital in shares of 27,000 francs, 

 one at Fg. Bujor which comprises eighteen co-operative societies and has 

 a capital in shares of 45,000 francs ; one at Topoloveni which has eleven 

 co-operative societies and a capital in shares of 23,200 francs ; and one at 

 Fg. Giacenea which has ten societies and a capital of 50,000 francs. 



The co-operative credit societies grant credit to their members, and 

 also to outsiders who receive about one third of their loans. The loans are 

 for long and for short terms: namely for from nine months to three years for 

 the purchase of provisions, forage and seeds ; and for from three to ten 

 years for that of live stock and agricultural implements and for the renting 

 and purchase of land. 



The business of the co-operative societies furnishes the following figures, 

 In 1902 there were 2,862 rural co-operative credit societies, having 563,270 

 members ; 99,067.74 francs of paid-up capital ; 7,151,799 francs in reserve 

 funds ; 16,503,381 francs in deposits : and debts to the Central Bank of 

 11,447,529 francs. They had granted 138,652,562 francs in credit. This 

 credit was distributed as follows : i) For provisions and forage 17.37 per 

 cent ; for live stock and agricultural implements 32.34 per cent. ; for the 

 purchase and renting of land 20.78 per cent. ; various 16.74 P^^ cent. 

 2) Personal credit amounted to 37.75 per cent, and credit on chattels to 62.25 

 per cent (27.33 per cent, on bills and 34.92 per cent, on pledgfes). 3) The fol- 

 lowing shows the amounts of the credit granted ; 6.46 per cent, of the 

 grants were of less than 50 francs; 18.62 per cent, were from 50 to 100 francs; 

 68.40 per cent, from 100. to 1000 francs; 6.52 per cent, more than 1000 francs. 



