i9i i ] Agricultural Co-operative Credit Societies. 737 



Thus in all the existing societies the liability of each and 

 all of the members for debts due by the society is unlimited, 

 and the ultimate security offered by the society for advances 

 made to it is the total property of all its members put 

 together. 



A society registered under the Friendly Societies Act has 

 to submit its rules to the Chief Registrar, whose duty it is 

 to satisfy himself that they are not contrary to the Act. 

 Most of these societies have adopted the model rules recom- 

 mended by the Agricultural Organisation Society, to which 

 all but two of them are affiliated, and the others have rules 

 which are in all important respects similar; so that regarding 

 all of them it may be said that, besides the principle of 

 unlimited liability, they have the following features in 

 common. 



No one can be admitted as a member unless he lives within 

 a certain circumscribed area, such as a parish, or two or 

 more adjoining parishes, and so is personally known to most 

 of his fellow-members. He must also be approved by the 

 committee as a man of good character, worthy of admission 

 to the society. All the members have an equal voice in the 

 election of the committee and the management of the 

 society. 



Loans to members are granted only on approved security, 

 and must be utilised only for a specified purpose, which, in 

 the opinion of the committee, is such that there is a sufficient 

 prospect of the loan repaying itself by the production, busi- 

 ness, or economy which it will enable the borrower to effect. 

 No member can have out on loan more than ^50 altogether 

 at any time, though he can, of course, repay one loan and 

 afterwards take out another, not exceeding £50. 



The society may receive deposits, either from members or 

 non-members, and may pay interest on them. 



No profit may be divided among the members of the 

 society. All profits must be carried to a reserve fund, which 

 can only be drawn upon to meet exceptional losses by resolu- 

 tion of the general meeting of the society. Even if the 

 society is dissolved, this reserve fund cannot be divided 

 among the members, but must be spent on some useful pur- 

 pose in the parish. Thus the only pecuniary benefit a man 



3 F, 



