8o2 JoKDial of Agriculture . Victoria. [i i Dec, 1911. 



moderate rates of interest to properly organized co-operative creilit socie- 

 ties, dividends being limited to 5 per cent. 



Agricultural credit is making headway in France, where the central 

 or district banks now number 95. In 1895, a law was passed authorizing 

 the Government to make advances, free of interest, to these banks. The 

 following figures show the result of this provision : — 



iqoo. 1909. 



State loans ... ... ... /,"24,5oo ... ^1,850,000 



District banks ... ... ... q .. 05 



Local banks ... ... ... 87 ... 2,08^ 



Members ... ... ... ... 2,175 •■• '33>.^82 



Loans ... ... ... ... /.'76,ooo ... ;^'4,2oi,ooo 



Members of a local bank must al.so be members of an agricultural 

 association, but the number need not exceed seven. The duration of 

 loans varies according to the nature of the object for which the money 

 is to be applied ; for instance, if for artificial manures or for seed, the 

 term admits of the crop being harvested and sold. 



The French Ministry of Agriculture has established a bureau for the 

 special purpose of assisting the movement by the distribution of infor- 

 mation. The bureau issues model rules, handbooks, &c., and acts 

 generally in an advisory and administrative capacity. The accounts of 

 the banks are also inspected by the officers of the bureau. 



There are 37 central banks in Germany. The Central Bank of 

 Neuwied, which was founded by Raiffeisen in 1876, has no less than 

 4,340 affiliated societies; Munich has 2,080 societies; others, like 

 Erfurt, have as few as 11. The total business (outgoings and incomings) 

 of the Neuwied Bank for 1908 amounted to over ^37.000,000. 



A Victorian Credit Bank. 



Reference has been made previously in this article to the Co-operative 

 Credit Bank of Victoria Limited. Although this institution is not, like 

 its Old World prototypes, local in its sphere of action, its shareholders 

 are united by a common bond, ina.'^much as they are past or present officers 

 of the Imperial, Commonwealth, or State service. 



The establi.<-:hment of a credit bank was first mentioned at a meeting 

 of the advisory members of the Civil Serv'ce Co-operative Society of 

 Victoria, and, as a result, a committee was appointed to consider the 

 matter. The writer was one of the micmbers of the committee ; and, 

 subsequently, he was elected to the first Board of Directors, and continued 

 as such for two years, being Chairman during 1907-8. 



After careful consideration, the Committee recommended the forma- 

 tion of a co-operative credit bank. The rules were registered on the 4th 

 December, 1905, under the Provident Societie.3 Act, and business w'as coni- 

 menced at the end of February, 1906, with a capital of ;£ti7- 'I'o- 

 day, the paid-up capital amounts to ^^2.343. The following figures, 

 taken from the balance-sheets, indicate the growth of the institution. 



In addition to writing off the preliminary expenses and \)roviding for 

 reasonable depreciation of furniture, a reserve fund of ^120 has been 

 created. A further reserve, to make provision for possible bad debts, 

 has just been inaugurated, and ;^io placed to its credit. 



Loans have been granted for quite a variety of purposes, e.g., liqui- 

 dation of loans obtained at usurious rates ; renovation of, and additions 

 to, dwellings; purchase of horses, cows, and vehicles; deposits on land; 

 payment of University fees to enable students to complete their course, &c. 



