114 AGRICULTURAL CREDIT BANKS 



principles, and is therefore not a charitable institution. 

 It is intended to appoint gradually representatives of the 

 depositors and creditors on the managing body, but at 

 present Government officials and other prominent in- 

 habitants predominate. The management is carried on 

 by a responsible administrator (usually a European), 

 assisted by European and native book-keepers, clerks, 

 and other members of the staff. The Government assists 

 the banks as long as is necessary with cash subsidies to 

 defray the expenses of management; in 1913 such sub- 

 sidies amounted to 127,000 fl. In the first few years 

 after 1904 loans were also given by the Government to 

 the banks out of the Government exchequer at the rate 

 of 4 per cent, interest with a view to the formation or 

 supplementing of the working capital; there was no 

 obligation to pay the interest, but this had to be added to 

 the reserve fund until such time as such additions should 

 appear to be no longer required. Since January i, 1913, 

 when the Central Fund (see below) commenced opera- 

 tions, the Government has ceased to furnish working 

 capital, except for supporting through the medium of 

 the banks measures of an economic nature, involving 

 special risk, and for which the Central Fund has no 

 money at its disposal, such as the importation of foreign 

 breeding cattle, the colonization of Javanese in the outer 

 possessions, etc. The banks do not possess any capital 

 of their own other than the reserves formed, with the 

 exception of two, who have a small share capital. It is 

 therefore their object to form a strong reserve fund as 

 quickly as possible. 



The working capital consists of deposits made by 

 individuals and by native communities and local societies, 

 such deposits are principally : 



(a) Deposits at from three to twelve months' notice of 

 repayment at a rate of interest varying from 4 to 6 per 

 cent, per annum; these deposits are chiefly made by 

 Europeans. 



(b) Savings, which may be withdrawn on demand at a 

 rate of interest varying from 3 to 4 per cent, per annum. 



(c) Compulsory deposits at a rate of interest of 6 per 

 cent, per annum, i.e., money which borrowers bind them- 



