THE WORKING* OP CREDIT BANKS IN THE 

 NETHERLAND EAST INDIES. 



By H. CARPENTIER ALTING, Batavia. 



THE object of the system of popular credit banks is 

 to give the inhabitants, and more especially the native 

 population, an opportunity to save money, and, in the 

 form of loans against interest, to obtain material assist- 

 ance for carrying on their trade and occupations, for the 

 acquisition of estate, and for other useful purposes. It 

 is in principle intended also for persons other than natives, 

 and therefore generally supplements the work of the great 

 European banks. 



The primary purpose of such banks is to furnish the 

 population with the necessary means, at a reasonable 

 rate of interest, for carrying on their business or vocation 

 and for other material purposes, and to cause such means 

 to be contributed as much as possible by the people them- 

 selves. A natural outcome of the latter is that a regular 

 and economical production of goods as well as then 

 proper distribution and use are encouraged. 



Since 1904 the system of popular credit banks has been 

 under the care of the Government. Previous to this, 

 however, popular institutions already existed in certain 

 places. These were generally of the nature of provident 

 institutions, viz.: 



(a) Loan and savings banks for natives (Government 

 officials and private persons), such as the so-called 

 " prijaji banks/' 



(b) Mutual burial and benefit funds. 



(c) Village barns for the mutual storage of selected 

 rice seed (" loemboeng bibit "). 



(d) Village barns for the supply of rice (padi) to 

 indigent persons, either on loan or free (" loemboeng 

 miskin," or "loemboeng amal "). 



(e) Societies for defraying the 'cost of ritual feasts 



