RURAL CREDIT 51 



community gains the advantage of having his 

 produce scientifically packed and distributed 

 to the best markets. Railway freights are 

 reduced substantially when carrying a large 

 quantity, and every encouragement is given 

 to small-holders to form these societies. The 

 science of rural credit has reached an advanced 

 stage. There are several systems, but the 

 Raffeisen Banks, on the basis of co-operative 

 credit, are far the most popular, and have 

 enormous organizations in nearly every 

 country. Their constitution is interesting and 

 unique. " They perform the apparent miracle 

 of giving solvency to a community composed 

 almost entirely of insolvent individuals."* All 

 members are jointly and severally liable for 

 the total indebtedness of their branches. The 

 operations of these local banks are supervised 

 by a committee. Loans are only granted at 

 their discretion. Great care is exercised in 

 admitting a new member to a banking insti- 

 tution, and no man of doubtful integrity 

 can hope to be elected. A bad debt conse- 

 quently is very rarely incurred, although 

 transactions are conducted on a large scale. 

 * Sir Horace Plunkett, " Ireland in the New Century." 



