164 RURAL RECONSTRUCTION 



Banks," while pleading for his own institution, expressly bid such 

 men do so. Accordingly, for the money which the bank lacks it will 

 have to provide something else, to serve the same purpose, for its 

 services are not to be rendered for nothing. That " something 

 else " is watchfulness and active participation in the business, which 

 the member, himself in search of occasional credit, must not grudge. 

 A co-operative bank wants to be, so to put it, an " animate " 

 machine, with life, consciousness, a sense of responsibility in every 

 spring and every wheel of its apparatus, all members working 

 together to render the business which is transacted, in view of all, 

 safe. It is to further this that the " maximum of publicity," which 

 Sir R. Morier pleaded for, is intended. Publicity is like the oxygen 

 of the air, which keeps things pure and sweet, and healthy. Of 

 whatever is done knowledge should be accessible to all members. 

 There is no need for secrecy in respect of anything, except only the 

 individual savings deposits made, of which nothing whatever is 

 disclosed. Borrowings, cash balances, all else should be open to 

 members' knowledge. 



The executive administration is of course placed in the hands of an 

 elected committee, which may be looked upon as representing the 

 " managing director " of the concern, and which ought accordingly 

 to be small and composed of men capable of the conduct of affairs, 

 which in a small bank is very simple. As the bank grows larger it 

 becomes advisable to appoint technically trained officers, who, of 

 course, are entitled to draw a salary. For early days officers drawn 

 from the membership, and working gratuitously, with probably 

 only a light burden of work laid upon their shoulders, are sufficient. 

 These are the people who actually take and deal out the money. 

 But in large banks they do not invariably deal it out altogether at 

 their own discretion. In many banks there is a special " credit 

 committee " to assess members to a permissible credit, setting a 

 limit, up to which the committee may trust them with loans — pro- 

 vided that the case is otherwise in order — without further to-do. 

 Should applicants ask for more, they will be required to furnish 

 additional security. The committee thus nominated is not, how- 

 ever, left unchecked. To check it there is a supervising council, or 

 council of control, corresponding to the " board of directors " in a 

 joint stock company, which holds the supreme reins of office for 

 the term of its tenure of office. In this capacity it is authorised to 

 go, should occasion require, so far as even to dismiss members of 

 the executive committee, should it judge them to be failing in their 

 duty. That " board " from time to time — generally every three 



I 



