440 PROVISION OF BORROWING FACILITIES. 



increase steadily as the years pass. Union bye-law No. 13 runs as 



follows : 



"Every Central Bank shall, with its constituent societies, make 

 an annual contribution to the permanent and indivisible 

 funds of the Union. Such annual contribution shall be a 

 sum not less than 25 per cent, of the annual expenses 

 budgeted for. ' Then follow these bye-laws : 

 "The annual contributions specified in bye-law 13 shall be allotted 

 to the respective Central Banks making them and Central 

 Banks shall employ the whole of the money so allotted in 

 an increase of their share capital. ' 



"Share capital thus obtained by Central Banks shall be employed 

 by them in their own co-operative business, but shall be 

 held by them on behalf of the Union and the shares shall 

 stand in the name of the Union. ' 



"The dividends earned by Union shares shall be paid to and 

 invested by the Governor of the Union in Trustee Securi- 

 ties to form a Famine Insurance Fund to accumulate at 

 compound interest. ' "In the event of famine or wide- 

 spread crop failure and consequent tightness in the money 

 market the financial resources of the movement may 

 seriously contract. To provide for such a monetary crisis 

 the Governor of the Union shall have power to make 

 loans out of the Famine Insurance Fund to the Provin- 

 cial Co-operative Bank in time of need at the average rate 

 of interest at which the Provincial Bank was obtaining 

 loans from the money market during the preceding twelve 

 months. Such loans shall be of the nature of temporary 

 advances only and the Provincial Bank shall bind itself to 

 recoup both principal and interest to the Famine Insu- 

 rance Fund as soon as the money market becomes normal 



The spirit of these bye-laws is the spirit of prudent co-operators who 

 have not been blinded by a new enthusiasm to their duties as servants 

 of the public. Nor has the Union failed to think of the paid co-opera- 

 tive staff whose lives will be spent entirely in the service of the cause. 

 The Union can employ no servant who is without a Union license ; and 

 this will give the staff a recognized status. There is a Provident Fund 

 too, and to this the Union adds for every servant 10 per cent, of his 



