110 AGRICULTURAL CREDIT BANKS 



given by the members, more especially marriages and cir- 

 cumcisions (" sinoman " societies). On the island of Bali 

 village banks are found which lend money to the villagers. 



The origin of these various institutions is uncertain; 

 but it is known, however, that as far back as the begin- 

 ning of the nineteenth century the Government took an 

 interest in the storing of rice (padi) in the villages, 

 with a view to assisting the necessitous and ensuring a 

 supply of seed, whilst Dutch officials introduced, or at 

 least encouraged, the idea of making monetary pro- 

 visions, more especially for the benefit of native Govern- 

 ment employees. 



The popular credit banks which have been organize^ 

 since 1904 and systematically established on those already 

 existing are closely connected with the system of govern- 

 ment in native communities, regencies, or provinces, 

 divisions and districts. They fall into three categories : 



(i) The Village Rice Credit Banks. These are known 

 as r< loemboeng dessa " in Java, and " loemboeng negari " 

 on the West Coast of Sumatra. They are institutions of 

 the native community (in Java "dessa," on the West 

 Coast of Sumatra " negari "), or of groups of native 

 communities, and therefore of the village communities. 

 The stock of rice (padi) is usually formed by the farmers 

 from contributions in natura, which are returned later on 

 out of the profits earned. Less frequently the original 

 stock is obtained from joint planting by the dessa 

 members on a portion of the communal land. 



Where the means of the population appear to be in- 

 sufficient the Government advance money, free of interest, 

 for the purchase of padi and materials for cultivation. 

 The padi is lent out on condition of repayment in natura 

 when the next crop comes in, with an additional 25 to 

 50 per cent, by way of interest. As soon as the debts 

 due in respect of the loemboeng have been paid and a 

 reserve fund has been formed, the interest is reduced as 

 far as practicable according to the loss due to the desic- 

 cation of the padi and the cost of administration. 



In law the loemboeng is regarded as a property and a 

 trade of the native community, established at the expense 

 of the farmers. 



