138 Cooperation in Agriculture 



"The original funds for the equipment of the dairy 

 are borrowed from a private bank and repaid by install- 

 ments. The working capital is provided by a premium 

 of (say) 15s. per cow owned, on which no interest is paid. 

 When the original loan is paid off, a new loan is taken 

 out from the bank at the same rate of interest, and is 

 charged upon the working expenses of the society, in- 

 cluding both original and new members. The money 

 thus obtained is handed over to the original members, 

 and then all alike proceed to pay off the new loan; and 

 so on through an indefinite series of loans and repayments. 



"The object of the device is this: old members, who 

 had borne the expense of the original loan, would naturally 

 not admit new members to joint ownership in a property 

 to which the latter had contributed nothing, while new 

 members would not always be prepared to pay down at 

 once into the reserve fund a sum equal to the individual 

 outlay of original members. However, a new member is 

 at any time admitted, if he is prepared to pay down, be- 

 sides his premium per cow, a subscription corresponding to 

 the amount which, at the time he happens to join, is paid 

 off on the debt of the creamery. The loans are obtained 

 at an average rate of 4 per cent from the municipal savings 

 banks or from private provincial banks. 



"In France the majority of the dairies are also formed 

 without capital shares. As in Denmark, the funds are 

 raised by loans bearing about 4 per cent partly from the 

 richer members of the society and partly from private 

 banks. The plan of making new members pay entrance fees 

 proportionate to the amount of the loan already discharged 

 has apparently been found quite workable in practice." 



