764 AGRICULTURAL ECONOMICS 



FEDERAL RESERVE BOARD 



Regulation Q 

 Series of 1915 

 WASHINGTON, September 3, 1915 



COMMODITY PAPER 



In this regulation the term "commodity paper" is denned as a note, 

 draft, or bill of exchange secured by warehouse terminal receipts, or ship- 

 ping documents covering approved and readily marketable, nonperishable 

 staples properly insured. 



Commodity paper, to be eligible for discount by a Federal Reserve 

 Bank under section 13, at the special rates hereby authorized to be estab- 

 lished for commodity paper below the usual commercial rates, must (a) com- 

 ply with all the requirements of Regulation B, series of 1915, paragraphs I 

 and II, or with the requirements of Regulation C, series of 1915; (b) and 

 be paper on which the rate of interest or discount, including commission 

 charged the maker, does not exceed 6 per cent per annum, and also (c) com- 

 ply with such regulations as may be issued by Federal Reserve Banks cover- 

 ing requirements as to warehouse or terminal receipts, shipping documents, 

 insurance, etc., adapted to the particular needs of its district as a condition 

 of the special rate herein authorized. 



Federal Reserve Banks are now authorized to submit rates for the dis- 

 count of commodity paper in accord with this regulation for review by the 

 Board. 



CHARLES S. HAMLIN, Governor 



H. PARKER WILLIS, Secretary. 



D. Criticism and Proposals for Reform 



246. THE AGRICULTURAL CREDIT SYSTEM OF GERMANY 1 



BY LE ROY HODGES 



Rural banks were first established in Germany by Raiffeisen in 

 1862, and on June i, 1910, less than fifty years later, there were 

 15,517 legally established institutions in the empire. 



The members of the Raiffeisen banks are farmers, usually peasant 

 proprietors. The number of members per bank varies considerably, 

 although, taking the banks under the National Federation as a whole, 

 92 members per bank is a fair average. Under the constitution of 

 the banks a minimum membership of seven is required. Some of the 

 recently organized banks have exactly this number of members. The 

 highest number of members reported for any one bank is 1,400, which 

 is a very exceptional case. 



1 Adapted from House Document No. 1435, 62d Cong., 3d sess., pp. 10-34. 



