4,74, AGRICULTURAL CREDIT.— DAVIDSON. 
Raffeissen banks, as they are called. They do not lend on mort- 
gages, but on simple acceptances, and yet their business has 
proved not only safe but much safer than the ordinary business 
of the commercial banks. It has been estimated that at least 
$750,000,000 is made available for the small producer, farmer 
and merchant, by these popular credit institutions, and the gain 
is not economic alone. Germany, Austria and Italy have 
thousands of these co-operative banks in operation. 
The movement has extended to Ireland during recent years. 
It had to meet not only the opposition of ignorance, but the 
political prejudice of the mass of the people who saw in people’s 
banks nothing but another device for killing Home Rule by 
kindness. The man most directly responsible for the establish- 
ment of these co-operative people’s banks is Mr. Plunkett, who 
was defeated in the recent election by Col. Lynch of the Boer 
army. Yet, in spite of prejudice in Ireland, in five years since 
the movement was started, 75 Raffeissen banks have been estab- 
lished. Last year these banks loaned out $45,000, on which the 
loss amounted to $7, and what is more remarkable, there are no 
overdue accounts. One of the objections which the commercial 
bank has to the farmer as a borrower is that he is not punctual 
in his payments. In these co-ope ration banks, whether in Ire- 
jand or on the continent, punctuality in payment is universal. 
In one of the Irish banks 586 loans were made last year, and in 
twelve cases only was there a week’s lateness in making pay- 
ment, This is the more remarka ble when it is remembered that 
these loans are made for strictly productive purposes, and that 
the borrowers are strictly held to their declared purpose. Loans 
are made for short or for long periods, though generally for 
three months with the privilege of renewal in full if the purpose 
is still approved and the borrower's character remains good. 
Within the Dominion at least one attempt has been made to 
establish People’s Banks on a co-operative basis to assist the 
farmer to obtain cheaper agricultural credit. British Columbia 
has legislation on its statute book authorizing the formation of 
and offering a subsidy to such agricultural credit institutions. 
