Agricultural Credit Banks. 



49 



deposit their savings in them, receiving, of course, due interest 

 on the same. This has already been done on a small scale 

 with the existing Societies. 



To commence with, however, they will have to borrow a 

 certain sum of mone)^, either from an ordinary banker, or from 

 some local friend or friends willing to lend, or place it on 

 deposit with them, on the collective security of the members. 

 The amount they are able to secure in this way depends 

 upon their character. A number of honest men, however 

 poor, can, by forming an Agricultural Credit Society on these 

 lines, command a certain credit which will increase or dimin- 

 ish according to the ability with which they manage their own 

 financial affairs. Hence the importance of great carefulness 

 in the admission of members, honesty and industry being the 

 two main qualifications required. 



Every member of the bank is entitled to apply for a loan, 

 but he or she must satisfy the committee of management that 

 the purpose for which it is required is a sound one, and the 

 money must not be spent in any other way than that for 

 which it has been granted, and must be repaid at the time 

 agreed upon. 



The money is lent at as low a rate of interest as possible, 

 as the object of Co-operative Banks, unlike others, is not to 

 make a profit out of advances, but to help the borrowers. 

 Most of the loans are made upon the personal security of 

 one or two sureties. 



The extension of the system for assisting the agricultural 

 districts with cheap credit will undoubtedly involve the 

 creation of a central Co-operative Bank to finance the 

 local societies. 



In continental countries the advantage of aiding the in- 

 habitants of rural districts in this way is so strongly realised, 

 that large loans are made by the Governments at a very low 

 rate of interest (subject to adequate supervision) for the 

 purpose. 



In England such matters are left to private enterprise, 

 and it is confidently believed that as the benefits of the 

 movement become more widely known this will be sufficient, 

 coupled with the surplus deposits ol the Town Co-operative 



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