135 



the money lent. 



What seems needed is not banks, primarily, but 

 money and cheap money at that. From the farmer's 

 standpoint, it is the money he requires, and this at 

 reasonable rates of interest and year in and year out, 

 and as long as he can offer reasonable security for it. 



The expenditure in connection with harvesting is 

 calculated, on an average in normal years to always ex- 

 ceed $225,000,000 mn. 



To provide this sum is to be the task of the new 

 Agricultural banks among other things, since they are 

 to occupy themselves primarily with agricultural needs. 



At present, according to many, this seem* to be the 

 duty of the "Banco de la Nacion," which represents na- 

 tional interests, and should therefore dedicate itself pri 

 marily to agricultural needs before commercial require- 

 ments, for which there are plenty of other banks. Un- 

 fortunately it is not so easy to draw a line where com- 

 mercial interests begin and agricultural interests end. 



Even if the "Banco de la Nacion" has the sum to- 

 tal necessary annually to raise the crop, in its coffers, 

 yet in the majority of cases the funds could only be 

 partly provided direct by banks to the farmers, even 

 though all the banks working in harmony. Commer- 

 cial houses must still play the principal part, chiefly 

 because they are on the spot. 



It would require an innumerable number of bran- 

 ches of banks and unlimited banking facilities, and 

 business acumen on the part of the managers, all of 

 which would have to be built up consistently, if direct 

 bank credits are the aim of the founders of rural bants. 



Banks as a sole means of providing rural credit 

 are impracticable. Experience has continually demon- 

 strated it. 



BANCO AGRICOLA. 



An agricultural bank as a sound banking institu- 

 tion is certainly desirable, but as a remedy for agricul- 

 tural distress, it is surely a chimera. In the endeavour 

 *to press its usefulness, the functions attributed to .it 

 have been complicated far beyond a practical sense, 

 and have ended by making a "Banco Agricola" im- 

 possible . 



The diversified functions which it is L o fulfil are 

 more than any one undertaking can successfully cope 

 'with . 



