ox AGRICULTURE TO IRELAND 123 



man borrowed £3 for ten months. He purchased a calf which he 

 sold after six months for £5, 5s. He paid up his loan and invested 

 the balance in pigs. Another borrowed £2 for ten months. He 

 bought pigs which he sold nine months afterwards for £6, lOs. A 

 third borrowed £4 for ten months, bought four pigs, and sold them 

 before the loan expired for £16. Similarly, the Irish market 

 gardener will by-and-by borrow money to enable him to crop his 

 garden, paying the money when the harvest has been reaped in 

 autumn, and the fruit-grower will borrow money to pay the plant- 

 ing out of his land and later on the reaping of his harvest, redeeming 

 his debt when the land yields its fruit. 



The loans vary in amount, ranging from a few pounds up to 

 £50. The average loan in Ireland has been £15, The amount of 

 the loan, of course, depends upon the trade transactions of the 

 farmer. The rate of interest depends upon the price of money. If 

 the Credit Bank can borrow at 3 per cent, it charges the members 5 

 per cent. The difference covers expenses and helps to form a reserve 

 fund. The period of the loan depends upon the object for which the 

 money is wanted. It ranges from months up to years. When any 

 member wants a loan he brings with him to the bank two sureties, 

 who become with himself jointly and severally liable for the debt. 

 These sureties will look after the borrower in their own interest. 

 This is further security to the bank and to those who have lent money, 

 to the bank. The bank makes enquiries as to the borrower's own 

 character. It will have done this when he was admitted to the bank, 

 but seeing that he is now asking money it will be done over again. 

 It also makes enquiries as to the soundness financially of the sureties. 

 Further, it enquires for what purpose the money is wanted. It 

 must of course be for a productive purpose, but it is necessary that 

 the bank should know what that purpose is. If on these points the 

 bank is satisfied, the loan is granted. In the interests of the 

 members and of the bank itself, a strict outlook is kept on the man 

 and the money. There is no spying, but the members keep them- 

 selves informed as to the man and satisfy themselves that the money 

 has been put to the purpose for which it was borrowed. There is 

 not much objection to the length of time for which a loan is granted, 

 provided it is reasonable. There is, however, objection to a loan 

 being granted and not being met when it is due. It is better that 

 the period should be long than that the debtor should fail to meet 

 his obligations and have to get an extension of time. This is 

 enforced upon the members, with the result that comparatively 

 little difficulty has been experienced in Ireland in getting farmers 

 to meet their debts when they fall due. 



The Raiffeisen banks of Ireland have been the most successful 

 system of co-operation in Ireland. There were three banks started 

 in 1896, with a membership of 138, and during the year they lent 

 £388, In 1905 there were 232 banks, with a membership of 13,035, 

 and a loan capital of £43,641. There have been fluctuations in all 

 the other Agricultural Societies, though in most of them there have 

 been very little. There have been practically no fluctuations in 

 the banks. They have made steady progress from the beginning. 



