8o3 journal oj Agriculture, Victoria. [ii Dec, 191 i. 



AGRICULTURAL CREDIT BANKS. 



.4. T. Sharp , Editor. 



Consequent on the inauguration and development of the Closer Settle- 

 ment Policy of the Victorian Government, communities of settlers whose 

 aims and aspirations are much in common are being created throughout 

 the State. The fact that the settlers on each estate are united by in- 

 terests in common should tend to largely develop co-operative ideas 

 amongst them. The butter industry, which has assumed such colossal 

 proportions in Victoria, is the outcome to a great extent of the formation 

 of co-operative butter factories in the country districts. Whilst co- 

 operation has in this respect proved its worth as a developing agent, 

 there are numerous other avenues whereby the producers may benefit them- 

 selves, and also the State, by the application of its beneficent principles. 

 Not the least important is that of credit banking. 



In Great Britain, the useful part which credit banks may play in the 

 successful cultivation of small holdings has been recognized by Parlia- 

 ment in the Small Holdings and Allotments Act of 1907. The County 

 Councils are given power under the Act to promote the formation and 

 extension of credit banks. With the consent of the Local Government 

 Board, they may also assist such societies by making grants or by 

 guaranteeing advances made from other sources. 



Although Victoria is comparatively well served by the various banks 

 and other institutions, as far as the farming community is concerned, 

 settlers often require temporary financial assistance, such as would not 

 justify them making application to any of the recognized sources. For 

 instance, a plough or an additional cow may be wanted. The amount 

 involved is comparatively small, but the settler has not the money available. 

 At the same time, if he were a member of a local agricultural credit 

 bank, practically a mutual self-help society, his credit would be sufficient 

 to enable him to obtain a loan at a reasonable rate of interest ; the 

 expenses incurred would be easily met by the increased productiveness of 

 his holding. The credit bank is not a competitor with the larger finan- 

 cial concerns, but is an aid to them. At all events, that has been the 

 experience in other lands. Its clients are, as a rule, persons whose 

 capital is but small, and whose requirements are limiited. 



Origin and Growth of Credit Banks. 

 Co-operative credit had its birth in Germany, but it has since spread 

 throughout the continent, to Great Britain. India, Canada, and Australia. 

 The Co-operative Credit Bank of Victoria, Limited, which will be re- 

 ferred to later, is the pioneer of the movement in the Australian Com- 

 monwealth. The following figures, showing the number of banks in 

 1909 in various countries, will give some idea of the growth of these 

 credit institutions: — 



Germany 



Austria 



Russia 



France 



India 



Italy 



In England, there are also 161 Small Holdings Socie'ies, most of which have 

 power by their rules to carry on the business of banking. 



