THE FISHERMEN 255 



boat, irrespective of age. M. Rivoal rightly denounces 

 this system as "defective and dangerous." "The funda- 

 mental principle of correct mutual assurance should be 

 an indemnity always in proportion to the value of the 

 boats, which is constantly decreasing." 



Mutual assurance societies flourish more particularly 

 in Latin countries. There are none in England ; but a 

 few shipowners effect mutual insurances. There are 

 very few in Holland and in Germany ; but in Spain and 

 Italy they are legion. 



Mutual maritime credit (credit maritime mutuel) is 

 a recent institution in France. Its beginnings were 

 extremely modest. It first appeared it the shape of a 

 co-operative society, of which the deputy M. Le Bail 

 was the promoter, and which concerned itself merely 

 with the purchase of bait (farine d'arachide, or earth-nut 

 meal) for sardines. The co-operative society, dealing 

 directly with the producers, lowered and regulated the 

 prices. This was the first step. The second step was 

 officially ratified. On the initiative of M. Le Bail, the 

 French Parliament voted the organic law of the credit 

 maritime, which was promulgated on April 23, 1906. 



A maritime credit society, or seamen's bank, operates 

 as follows : The total capital can only consist of paid-up 

 shares ; these shares are not transferable, and yield an 

 annual dividend determined by a general meeting, but 

 which must not exceed 5 per cent, of the paid-up capital. 

 The business of such a company may be classified as 

 follows : the issue of loans upon the security of negotiable 

 paper bills at sight, agreements, warrants, &c., to its 

 shareholders, who must give proof of the utility and the 

 strictly maritime character of the loan, or must give 

 sufficient security ; discounting of bills ; rediscounting 

 of these bills through a bank, credit society or loan 



