256 SEA FISHERIES 



society after obtaining their endorsement ; undertaking 

 the recovery of debts or payments due to its share- 

 holders ; receiving deposits on current accounts with or 

 without interest ; the contracting of loans necessary to 

 the establishment or increase of its floating capital ; and 

 investing such funds as may be temporarily idle. As a 

 rule, no loan must be contracted for a period exceeding 

 three months. Interest on the loans is higher than the 

 bank-rates of the Bank of France, and a very small 

 monthly commission is charged, for example *i per cent. 

 The discounting of bills of exchange is subject to the 

 same rule. At the end of the business year 75 per cent, 

 of the net profits are devoted to the constitution of the 

 reserve fund and the surplus is divided among the share- 

 holders in proportion to the interest charged on their 

 operations. 



The law of the 23rd April was scarcely promulgated 

 when local funds * were established in the ports of 

 Finistere. These local funds were, however, very small, 

 and their operation hardly differs from those of the 

 former co-operative societies. In order that they should 

 survive and develop themselves, it was necessary to 

 group them together, to co-ordinate them ; in short, 

 to raise them to the rank of district societies. This 

 centralisation fulfils so pressing a necessity that the 

 "Association of Maritime Loans" was founded at Quimper 

 on August 22, 1906, the State making an advance 

 of .4,000, which was paid out of the State subsidies for 

 the Merchant Marine. Since June 18, 1909, the district 

 societies have had a legal existence. Besides advancing 

 ordinary loans, they may advance the local societies 

 special loans for the benefit of the maritime co-operative 



1 There are to-day seven local funds, six in Finistere and one at 

 Collioures. 



