228 AGRICULTURAL ORGANISATION 



Savings Bank's deposits would be made available for the use 

 of village co-operative credit societies, on such approved security 

 as might be offered by a central co-operative agricultural credit 

 association. 



In connection with this proposal for the utilisation of 

 Post Office Savings Bank deposits for the financing of 

 co-operative credit societies, and enabling them to make 

 advances for reproductive purposes, it might be mentioned 

 that in Belgium a law of June 21, 1894, authorised the 

 Savings Bank of that country to utilise part of its funds 

 as loans to co-operative societies of agricultural credit, 

 the object of this modification of the previously existing 

 law being as stated by M. Mahillon, Director of the 

 Belgian Savings Bank, in a Manual on Credit published 

 by him to favour the development in Belgium of co- 

 operative credit societies similar to those that had suc- 

 ceeded so remarkably in Germany, and had multiplied so 

 greatly in recent years throughout Central Europe in 

 general. 



Further, a suggestion has been made with regard to 

 modifying in certain cases the principle on which, up till 

 now, credit societies in this country have been formed. 



All the existing agricultural credit societies, registered 

 under the Friendly Societies Act, are based on unlimited 

 liability of the members. There is, however, still a certain 

 amount of prejudice entertained towards this principle, and 

 there is, besides, the need to provide for the special require- 

 ments of small farmers who may desire a ready means of 

 securing larger advances than a Raiffeisen society could 

 make, but who may also themselves be averse especially 

 when these large advances come into question to unlimited 

 liability. 



These difficulties, it has been thought, would be overcome 

 if the rules applying to co-operative credit societies were so 

 altered that, while the societies were still registered under 

 the Friendly Societies Act, they might, by special authority 

 of the Treasury, and if they so desired, operate on the 

 principle of liability limited by guarantee. 



