154 



Village Banks in England. 



[JUNE, 



co-operative banks, and although, owing to these advances being 

 free of interest, the banks are able to lend money at a very low 

 rate, it is pointed out that they are misleading agriculturists as 

 to the rate at which they may reasonably expect to borrow, and 

 that the banks are unable profitably to extend their operations, 

 as they can only borrow at a higher rate than they are charging 

 to their members. The Department therefore urges these co- 

 operative banks to place their business on a sound commercial 

 footing by only discounting bills at a rate not less than that 

 charged by the Bank of France, and to endeavour to make a 

 profit on their transactions which will enable them to place an 

 annually increasing sum in reserve. 



Further information as to the working of co-operative credit 

 in France is to be found in an article by M. Edmond Rabate in 

 the Bulletin Mensuel for March, 1905, published by the French 

 Ministry of Agriculture. 



The Village Co-operative Credit Societies in England, to which 



reference was made in the preceding issue of this Journal, (p. 100) 



are now nine in number. Their object is 



Village Banks in to enable small farmers, market gardeners, 

 England. 



or allotment holders to obtain advances for 

 reproductive purposes at a low rate of interest. Loans are 

 granted, for instance, for the purchase of cows, sheep, and pigs ; 

 the paying of working expenses on small holdings and allot- 

 ments ; the repair of tomato and cucumber houses, and the 

 purchase of seeds and manure. The rate of interest charged 

 varies, but does not exceed 6 per cent, per annum, or is. per 

 month on ^"io. The working capital is provided by entrance 

 fees and by deposits, supplemented when necessary by loans 

 from a joint stock bank. The security offered is the unlimited 

 liability of all the members, and it is on this security that 

 advances are obtained from bankers. In the limited areas in 

 which these societies work an intimate acquaintance with the 

 circumstances of each of the members is not difficult of attain- 

 ment, and as borrowers are required to furnish one or two 

 sureties, losses are practically unknown. 



