Il6 AGRICULTURAL CREDIT BANKS 



to individuals. (See also Netherland East Indies Govern- 

 ment Gazette, 1909, No. 584.) The credit charge is 

 especially a means of counteracting the custom very 

 prevalent amongst natives of mortgaging grounds and 

 fruit trees, such mortgaging giving the creditor the 

 usufruct of the mortgaged property and thereby im- 

 poverishing the debtor. 



Property on which a credit charge has been established 

 continues to be used by the debtor, who therefore enjoys 

 the revenue thereof. It is consequently provided that 

 any mortgage on property on which a credit charge has 

 already been given shall be void. 



A credit charge is given by an authentic Act (in con- 

 formity with a fixed form), executed before a native 

 Government official. The Act is entered in a public 

 register. The cost is a very small one. 



Should it be necessary to levy execution on any pro- 

 perty on which a credit charge has been established, the 

 same will be carried out through the medium of the 

 President of the Native Court of Law. 



The banks also enjoy exemption from or reduction of 

 stamp duty in respect of share certificates in the working 

 capital (vide the stamp ordinance). The banks issue 

 annual printed reports. 



(4) There also exists at Batavia a central bank under 

 the name of Central Fund for the Popular Credit Banks, 

 with which the credit banks referred to under (3) may 

 enter into connection. This body has been established by 

 Royal decree (see Netherland East Indies Government 

 Gazette, 1912, No. 393), is incorporated, and provided by 

 the Government with a working capital, which will be 

 gradually increased to 5,000,000 fl. 



The objects of the Central Fund are : 



(a) To supply working capital to and investing the 

 moneys of popular credit banks, and (b) to advise and 

 assist in their management. 



The Central Fund is also of service in the supervision 

 of such banks, carried out on behalf of the Government 

 (see below, " Government Supervision "). It has power 

 to contract loans, to invest its funds in bonds, and deposit 

 same with banking institutions and to purchase movable 



