474 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 tut 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, I ut 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- 

 land or on the continent, punctuality in payment is universal. 

 In one of the Irish banks 536 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. 



