134 



CO-OPERATIVE CREDIT ASSOCIATIONS. 



got £2>- 



^^ -boug-ht two sheep and paid his passage to England. The 

 sheep had two lambs, with which he paid loan. He has now five sheep. 



would have had to sell a springer to take him to England, but 



borrowed ^2> ^"'^ kept his beast. He has a cow and calf now, and paid his 

 loan out of money made in England. 



;63) fo"" =i^ months — bought two young pigs for 30^. and manures 



and seeds. Pigs sold in October for ;^5 icy. 



;^3, for four months — bought two young pigs and paid his fare to 



England. Results splendid. 



The following statement as to the transactions of a typical " Bank " may 

 be of interest : — - 



Clare Island Agricultural Bank, Co. Mayo. 



The confidential reports of the secretaries of the various Banks (which I 

 have been permitted to read) show clearly that most of the borrowers could 

 profitably employ two and three times as much capital as the funds of the 

 local Bank place, at present, within their reach. It is consequently a 

 matter of some moment that the loan capital funds of these associations 

 should be augmented. In this connection I may quote a paragraph from 

 the Sixth Report of the Irish Agricultural Organisation Society : — 



" We have great pleasure in recording the enlightened policy of the 

 Congested Districts Board in aiding these Banks, which has been fully justified 

 by the results. The Board has allowed banks in congested districts to borrow 

 loan capital from it to the extent of ;^3,ooo. The amount lent to the indi- 

 vidual societies varies from ;^50 to ;^2oo, on which they pay interest at the rate 

 of 3^ per cent. About these small deposits as a nucleus other sums g-ather 

 by degrees, and a sufficient capital will in time be acquired. Much might be 

 done by the Joint Stock Banks if they would recognise the security formed by 

 an association, and the fact that these little societies cannot be regarded as 

 rivals, but as feeders, enabling the large banks to utilize their capital in pro- 

 moting enterprise in a class hitherto excluded from their help." 



The Department of Agriculture and Technical Instruction also have 

 decided to allocate certain sums to the purposes of the organization and 

 capitalization of Raiffeisen credit associations in non-congested areas, so 



* The term "Profit," as here used, means the gross return exclusive, of course, of the 

 amount of the loan. 



