1905.] 



Agricultural Credit in Belgium. 



281 



of these associations are suited to the customs and needs of the 

 small and medium holders. It may be pointed out, however, 

 that the National Savings Bank allows 3 per cent, on the deposits 

 of credit societies of whatever amount, whereas under ordinary 

 circumstances it only pays 2 per cent on deposits above £120. 

 It would seem that this concession has been the means of 

 drawing deposits to the societies from persons who do not wish 

 to borrow. The National Savings Bank has given notice of 

 its intention to reduce the interest from 3 to 2 per cent, unless- 

 the societies will bind themselves not to receive deposits on any 

 one account exceeding £80. 



The possession of these deposits has rendered it unnecessary 

 for the societies to take much advantage of a law dated 

 2 1st June, 1894, authorising the States Savings Bank to place 

 part of its funds at their disposal. The object of this law was 

 to group the local banks round central co-operative societies of 

 limited liability, whose special function was to act as inter- 

 mediary between the affiliated local associations and the 

 National Savings Bank. These central banks, to which the 

 local societies were to be affiliated, would guarantee loans r 

 the amount of which would then be paid direct to the local 

 association by the National Bank. Six of these central banks 

 have been established, with 320 affiliated societies, but the actual 

 business done by them has been very small. Two exist only 

 in name, and the loans from the savings bank in course of 

 repayment at the end of 1903 only amounted to ,£17,000. 



Only one, in fact, of these associations appears to have opera- 

 tions on a large scale, viz., the Central Credit Society of the 

 " Ligne des Paysans" (" Boerenbond"), established in 1898 at 

 Louvain. This society had 195 local banks associated with it, 

 and, in addition to 63 guaranteed loans with the Savings Bank 

 it had on its books at the end of 1903, 137 loans made from its 

 own funds, amounting to £34,000. The deposits it received 

 represented a total of £90,000. Members of this society 

 (i.e., the affiliated local banks) must subscribe at least one sjiare,. 

 fixed at 100 francs (£4), each share carrying with it a liability 

 for 1,000 francs (£40). The societies must hold one share for 

 every £40 guaranteed in their favour or advanced by the Central 

 Bank. Their accounts are examined and audited annually 



