Agricultural Finance & Co-operation. 346 



[April, 1912. 



in money or paddy, he is generally bound 

 by stipulations as regards the sale of his 

 paddy, and is not always free to sell at 

 his own terms in the open market. 



" It is clear from the evidence before us 

 that if the Banks charge interest at the 

 rate of 12%, the sum to be paid for a loan 

 will be nothing compared to that which 

 has to be paid at the present time, 

 and farmers will have the added benefit 

 that they will be under no obligation 

 to sell the fruits of their labour to any 

 particular individual or at any given 

 time. 



"We strongly recommend that the 

 accounts of Co-operative Credit Banks 

 should be subjected to periodical audit 

 by an approved auditor. 



, "The evidence which accompanies this 

 report speaks for itself with regard to 

 that referring to money-lending trans- 

 actions. It is clear to us that the peasant 

 propietor will never advance under pre- 

 sent conditions, and that his only 

 chance of salvation lies in his being 

 able to obtain money under suitable 

 guarantee, at reasonable terms and with- 

 out harassing conditions. 



" Very important facts were placed 

 before us by Officers of the Victoria 

 Loan Bank Association, the Negro 

 Improvement Society Loan Bank at 

 Rosehall, and the Buxton Loan Bank 

 started uuder the auspices of the 

 Buxton Farmers' Association. From 

 the evidence given with respect to 

 these Banks, it is clear to us that 

 the principles under|which^Co-operative 

 Credit Banks are worked are already 

 known to a limited extent, and that the 

 people are beginning to recognise the 

 benefits which such Banks can offer. 

 The work of the Government in estab- 

 lishing Co-operative Credit Banks will 

 under the circumstances be the easier. 



" We suggest that an Ordinance be 

 passed to give effect to our proposals, 

 and we think that in carrying them out 

 the Government should proceed with 

 great caution. What is wanted is to 

 teach people the value of Co-operation 

 and the advantages of thrift, and this 



cannot be done by establishing a large 

 number of Co-operative Credit Banks 

 simultaneously and providing loans of 

 money in profusion. Where there is 

 a demand for such Banks, the require- 

 ments of the people should be looked 

 into, and if a sufficient number is found 

 agreeable to conform to the rules when 

 a Bank might be started. But in the 

 first instance it would be advisable in 

 our opinion to start with two or at 

 most three Banks as object lessons, and 

 preferably to start by taking in hand 

 the Co-operative Credit Banks already 

 in existence, if the members of them are 

 willing that this should be done. 



" Once it is clearly shown to the Govern- 

 ment that the people desire to co-oper- 

 ate, and to obtain the advantages 

 attaching to co-operation, that Banks 

 can be worked without loss to the 

 Government and with benefit to the 

 people, and that the system is under- 

 stood and suited to the requirements of 

 the colony, an extension of the system 

 becomes easy and can be made at com- 

 paratively short notice and with little 

 risk. 



" We recommend that there should 

 be a Co-operative Credit Banks Board 

 for the purpose of dealing with applic- 

 ations, supervising the arrangements 

 for the loaning and repayment of Govern- 

 ment money, and advising the Govern- 

 ment generally, and that this recom- 

 mendation should be embodied in the 

 Ordinance. 



" We further recommend that the rules 

 of each Bank should be made subject 

 to the approval of the Goverhor-in- 

 Council. 



" In submitting this report we ex- 

 press the hope that the Government 

 will recognise the value which Co- 

 operative Credit Banks will be to the 

 people of British Guiana, and in their 

 interests will authorise a trial being 

 made of them. 



