1028 



Friskney Credit Society. [march, 



of them overdue. Five loans were made to enable the 

 borrowers to take small holdings, five to enable them to retain 

 stock for better prices, two to buy seed potatoes and pigs, one 

 for the purchase of stock, and another for the purchase of a 

 reaper. 



In order to obtain money to meet these loans the Society 

 began by offering to take deposits at 3 per cent., and in the 

 first year received £82 on these terms. It has since received 

 and paid deposits every year, and at the end of 191 1 held 

 £152 deposited by 9 persons, 5 of whom were members, and 

 4 non-members. Last year, finding the amount required for 

 loans was more than the amount received on deposits, it raised 

 the rate of interest paid on deposits to 3J per cent. It also 

 borrowed £20 from a bank at 5 per cent., and £30 from an 

 Insurance Company at 4 per cent., which shows that its 

 credit is good. 



For the first three years of its working, the Society's profits 

 were not enough to pay the Secretary's salary of £1, and the 

 net result of the year's working showed a small loss. Since 

 then there has been a profit every year, and at the end of 

 the year 191 1, the balance-sheet showed that the total profits 

 up to date amounted to £8 js. 2d., as follows : Assets 

 ,£205 js. 2d., including ,£196 out on loan to members : 

 Liabilities ^197, of which ^152 were due to depositors, £1$ 

 to a Bank, and £30 to an Insurance Company. The surplus 

 of £& 7 s - id-, which represents accumulated profits, forms an 

 indivisible reserve fund, and is the property of the Society, 

 on which it pays no interest. 



Here then we have a society managed by the villagers 

 themselves, with practically no help from outside, on sound 

 business principles. It has been able to borrow at low rates 

 of interest on the credit it has built up for itself by good and 

 careful management, and has been able to make loans to its 

 members for profitable agricultural purposes at 5 per cent, per 

 annum. As the reserve fund grows, and the interest obtained 

 on it increases, the Society may look forward to being able to 

 lend to its members at even a lower rate than 5 per cent., which 

 is itself a rate at which few small agriculturists outside these 

 credit societies can borrow, if they can borrow at all. 



