398 PROVISION OF BORROWING FACILITIES. 



standing loans. Most societies insist that there shall be a real 

 movement in these accounts by requiring a certain percentage at least 

 of the overdrafts to be repaid into the account within each half-year 

 or year; otherwise they call in the whole amount at once, or reduce 

 the credit, or raise the interest. 



As to the loa'ns for definite periods, such periods are determined as 

 far as possible in accordance with the desire and position of borrowers ; 

 they are granted usually for at least a year, when they are generally 

 renewed on application ; they may rnn for two, three, four, or five 

 years, but those for longer periods are far from rare. Societies reserve 

 the right to recall loans on notice of from one to three months. Easy 

 terms of repayment are a marked feature of Raiffeisen societies. 

 When arranging for loans borrowers submit to the committee the 

 length of time for which they require accommodation, and their 

 proposed method of repayment ; and they are usually allowed to repay 

 in instalments of equal amounts spread over a period of years. It is 

 a not unusual plan to fix the instalments according to the number of 

 years for which the loan is granted ; thus where a loan is granted for 

 two, four or five years there is due each year from the borrower fifty, 

 twenty-live, and twenty per cent, of the loan respectively. Borrowers 

 are always allowed to make additional repayments on giving notice 

 usually one to three months' notice is required to the society of such 

 intention. Repayments of loans appear to be maintained in satisfac- 

 tory relationship to fresh loans: in 1909 and 1910 the societies in the 

 Imperial Federation (to which over 80 per cent, of all rural credit 

 societies are affiliated) granted fresh loans of the value of 15,075,000 

 and 16,910,000 respectively , while the repayments on outstanding 

 loans amounted respectively to 9,270,000 and 10,990,000. In the 

 same years the amount paid in by members on current accounts 

 amounted to 29,878,000 and 33,518,000, while the amounts paid 

 out to members on the same accounts amounted to 30,683,000 and 

 34,130,000 respectively. 



But it may be asked : what course is taken when deposits are 

 insufficient (or even non-existent, as upon the establishment of a society) 

 or when they are ever-abundant ? As a rule credit is obtained , 

 or any excess of deposits over current needs lodged, at a central 

 co-operative bank. From the beginning RAIFFEISEN recognized the 

 necessity for combination among rural credit societies so as to provide 

 them with a permanent centre at which depositing and borrowing 



