2i6 AGRICULTURAL ORGANISATION 



to repay before the completion of the agricultural operations 

 for which they obtained their loans. 



CENTRAL CO-OPERATIVE AGRICULTURAL BANK. 



It was sought to overcome this difficulty by forming a 

 Central Co-operative Agricultural Bank, a number of gentle- 

 men interested in the movement having undertaken to 

 subscribe the necessary initial capital. Such bank was 

 registered late in 1906 under the title of the Central Co- 

 operative Agricultural Bank, Ltd., though business was not 

 commenced until September, 1907. The special purpose of 

 the Central Bank was to make advances to agricultural 

 credit societies, and a number of new societies of this type 

 were started. In 1908 the annual meeting of the A. O. S. 

 passed a resolution in favour of the Central Bank making 

 advances also to co-operative societies of other kinds, and 

 in 1909 a scheme for extending the business of the bank on 

 these lines was adopted by the directors. 



It was proposed, under such scheme, to raise the necessary 

 working capital by (a) the issue of shares ; (b) guarantees, 

 and (c) the receiving of deposits from societies having 

 surplus funds or, alternatively, the obtaining of loans from 

 joint stock banks under conditions more favourable than 

 those which local societies could command when acting 

 separately. It was further hoped to make advances, not 

 only to local affiliated credit societies (though not direct to 

 individual borrowers), but to local agricultural co-operative 

 societies which might need funds for 



1. The erection, for trade purposes, of such buildings as 

 dairy factories or sheds for the storage of feeding-stuffs and other 

 agricultural requirements. 



2. The holding of large stocks, societies finding, in many 

 circumstances, that it is impossible to develop any considerable 

 business when they buy only against orders. 



3. The appointment of expert managers. 



4. The purchase of expensive implements for hiring to 

 members. 



5. Organisation of the sale of produce on such lines, apart 

 from cost of depots, as will enable a society to pay for the produce 



