Feb. 1907.] 



Miscellaneous. 



up. For example, a man borrowing $100 for five months, repayable in monthly 

 instalments of $20 each, will receive interest on the first instalment paid in for four 

 months, on the second instalment for three months, &c, in each case the instalment 

 paid in on account of loan being treated as if it were a new deposit. Or supposing the 

 loan to have been made subject to the right of repayment in two instalments, at any or 

 specified dates, the interest on part of the loan to the extent of the amount covered 

 by the instalment would terminate with its payment, and the interest of the balance 

 with the payment of the second instalment. 



As a rule, the loans and advances are secured by the signature of two solvent 

 sureties who must be shareholders, but in addition to these signatures the committee 

 of credit and management is obliged to inquire carefully into the personal financial 

 standing and condition of the borrower, and ascertain whether reasonable confidence 

 may be placed in his promptness to repay the loan. Above all, they are obliged to 

 °btain accurate information with regard to the honour, the spirit of order, activity, 

 honesty and ability of the borrower, and the latter is always bound to state in his 

 application for credit the use he intends to make of the moneys asked for. The 

 society may open credits on current accounts, with or without security, but the 

 auiuont due is not at any time allowed to exceed $100. 



Administration and Management. 

 The affairs and management of the society are under the direction of a council 

 of administration, a committee of credit and management and a committee of 

 supervision, whose powers and action are determined by the shareholders as a whole, 

 in general meeting assembled. 



To preserve the democratic nature of the institution, and to further success- 

 fully its main objects, two principles have been regarded throughout as fundamental. 

 In the first place, the number of shares to be acquired by any one person is limited 

 by the general meeting of shareholders, and in the second place, in the management 

 and direction of affairs, the votes have been on the basis of membership rather 

 than on the basis of the number of shares held— one associate, one vote. In this 

 way the controlling interest of all the members has been made dominant over an 

 otherwise possible cumulative interest of a few. Another fundamental principle is 

 the local control, no branch system being admitted. 



The General Meeting. 

 A general meeting of shareholders is held annually, and where occasion 

 demands, extraordinary general meetings may be called. At the general meeting 

 the officers of the society and the members of the various committees are elected. 

 No shareholder is allowed more than one vote, whatever may be the number o±" 

 shares he owns, and no one can vote unless he has been a shareholder for at least 

 three months, and is in good standing with the association. Decisions are adopted 

 by the majority of the votes. The general meeting receives the reports of the 

 council of administration and the committees of credit and management and the 

 committee of supervision, which reports it examines, approves or rejects. It deter- 

 mines, subject to the provisions of the by-laws of the society, the dividends to be 

 paid, and the maximum of advance to be given to a single shareholder. 



The Council of Administration. 



The council of administration consists of nine members chosen from amongst 

 the shareholders by the general meeting. Its members are known as directors, and 

 are elected for three years, three members retiring at the expiration of each year. 



The council thus elected chooses a president, vice-president and secretary, 

 who are likewise the president, vice-president, and secretary of the society. This 



