24 
JOURNAL  OF  HORTICULTURE  AND  COTTAGE  GARDENER. 
July  9,  190o 
Banks  Association  asking  for  the  removal  of  these  restric¬ 
tions,  and  presented  by  them  in  conjunction  with  the  Irish 
Agricultural  Organisation  Society  and  the  Agricultural 
Organisation  Society  (England).  These  important  conces¬ 
sions  have  now  been  granted  by  the  Treasury,  and  hence¬ 
forward  village  credit  societies  in  England  should  rapidly 
increase  in  number  . 
The  late  Mr.  R.  W.  Hanbury,  M.P.,  was  the  first  leading 
statesman  in  this  country  to  grasp  the  iDeneficial  possibilities 
of  co-operative  credit,^ and  but  for  his  untimely  death  would 
have  been  the  principal  speaker  at  a  meeting  which  was 
being  organised  by  the  association  for  May  last.  On 
December  1,  1902,  Mr.  Hanbury  made  the  following  remarks 
at  Aberystwyth  :  — 
There  is  another  experiment  wliich’  I  should  like  to  see  made, 
especially  in  a  district  of  small  farmers.  The  system  of  agricultural 
banks  has  been  carried  out  almost  universally  on  the  Continent,  and 
has  been  a  great  success  in  Ireland.  I  believe  that  to  a  community 
of  small  farmers  these  banks  Avould  be  invaluable  (hear,  hear).  They 
are  not  for  the  purpose  of  borrowing  large  sums  of  money,  but  we 
know  that  there  are  particular  times  in  the  year  when  £2  or  £3  might 
be  as  useful  to  a  small  farmer  as  £20. 
It  might  enable  him  to  avoid  the  necessity  of  selling  an  ox  or  a 
cow.  which  could  be  kept  to  ultimate  profit,  by  meeting  the  demands 
of  the  moment.  In  agricultural  banks,  I  think,  a  wa}’  might  be 
found  of  tiding  over  an  evil  day,  and  it  is  to  help  of  this  kind  that 
many  a  farmer  owes  his  rise  in  life.  From  a  failure  he  has  become  a 
success.  There  are  a  hundred  ways  in  which  such  banks  might  be  of 
great  use.  All  these  considerations  that  I  have  been  putting  before 
you  arc  not  mere  theories.  If  they  were  I  should  not  be  here  saying 
a  word  in  their  favour,  because  I  feel  that  farmers  cannot  afford  to 
make  experiments.  But  when  these  things  are  carried  out  with  great 
succcis  under  similar  conditions  on  the  Continent  and  in  Ireland,  for 
tlic  life  of  me  I  cannot  see)whj'  they  should  not  also  be  a  success  here. 
The  support  of  so  influential  and  practical  a  statesman 
as  the  late  Mr.  Hanbury  would  doubtless  have  done  much 
to  promote  the  establishment  of  agricultural  banks  ;  but 
although  he  has  been  snatched  away  in  the  zenith  of  his 
usefulness,  his  clearly  expressed  ideas  on  this  subject 
should  stimulate  others  to  help  forward  a  movement  capable 
of  doing  such  a  vast  amount  of  good.  A  network  of  village 
credit  societies  should  be  gradually  formed  throughout  this 
country.  To  direct  the  establishment  of  co-operative  banks 
in  town  and  country  districts  a  national  association  has 
been  formed  on  lines  precluding  personal  profit  by  its 
members.  Mr.  R.  A.  Yerburgh,  M.P.,  is  chairman  ;  the 
following  are  the  vice-presidents :  The  Countess  of  War¬ 
wick,  the  Earl  of  Coventry,  Mr.  F.  S.  W.  Cornwallis,  Major 
W.  Evans  Gordon,  M.P.,  Mr.  R.  J.  Price,  and  Mr.  W.  C. 
Steadman,  L.C.C.  There  is  also  a  strong  council,  which 
includes  the  Rt.  Hon.  Horace  Plunkett,  the  Earl  of  Stam¬ 
ford,  and  Professor  Bottomley  ;  Mr.  H.  C.  Devine  being 
the  energetic  and  enthusiastic  secretary. 
The  objects  of  the  society  are  clearly  defined  in  the 
following  particulars,  sent  out  by  the  association,  whose 
office  is  at  29,  Old  Queen  Street,  Westminster,  S.W.  They 
are  as  follows  : 
people’s  country  co-operative  banks. 
The  need  of  cheap  credit  for  the  productive  and  economic 
purposes  of  farmers,  small  cultivators,  allotment  holders,  and  the 
labouring  classes  generally  is  very  great.  Big  tenants,  as  a  rule, 
can  obtain  monetary  advances  from  joint  stock  banks  at  a  fair  rate 
of  interest,  thereby  earning  a  more  substantial  living  than  would 
otherwise  be  possible!  The  object  of  the  Co-operative  Banks  Asso¬ 
ciation  is  to  help  smaller  people  to  obtain  similar  advantages,  by 
combining  together,  and  pledging  their  united  liability,  so  as  to 
secure  advances  from  capitalists  at  a  low  rate  of  interest,  and  lend 
the  money  out  amongst  themselves.  At  present  their  business  is 
not  considered  worth  the  attention  of  the  banks,  and  they  either  have 
to  struggle  along  as  best  they  can,  or  apply  to  a  money-lender,  which 
is  worse,  as  to  borrow  money  from  advertising  usurers  generally 
means  misery  and  ruin.  The  large  number  of  bills  of  sale  in  the 
names  of  farmers,  dairymen,  gardeners,  &c.,  conclusively  proves  the 
necessity  for  reasonable  methods  of  obtaining  credit  amongst  the 
agricultural  population. 
In  addition  to  assisting  those  already  on  the  land,  people's 
country  co-operative  banks  would  undoubtedly  be  a  means  of  increas¬ 
ing  the  number  of  small  holdings,  of  the  nature  of  those  promoted 
by  Lord  Carrington  on  his  estate  in  Lincolnshire,  by  which,  besides 
the  tenants,  landlords  and  large  farmers  would  also  benefit,  the  first 
by  prompt  payment  of  rent,  the  second  by  the  increased  amount  of 
strong,  willing,  able  labour  in  their  neighbourhoods.  Co-operative 
banks,  in  creating  the  necessary  financial  credit,  would  go  a  long 
way  towards  stemming  the  prevailing  drift  into  towns,  and  raising 
the  independence  and  morale  of  the  industrial  community.  If 
established  generally,  they  would  be  a  great  aid  to  farm  labourers  to 
add  to  their  small  w'agcs  by  the  purchase  of  pigs,  poultry,  &c.,  and 
repay  the  outlay  from  profits. 
On  the  Continent  country  credit  societies  of  the  kind  advocated 
have  worked  wonders  in  increasing  the  comfort  of  the  people,  and 
exterminating  usury.  The  Baifl'eisen  Agricultural  Banks  Associa¬ 
tion,  w'hich  has  now  over  2000  affiliated  societies,  boasts  that  neither 
member  nor  creditor  has  lost  a  farthing  by  them  since  the  establish¬ 
ment  of  the  movement  in  1849. 
In  organising  a  country  co-operative  bank  there  arc  certain 
rules,  regulations,  and  principles  which  are  of  the  greatest  import¬ 
ance.  The  first  is  the  unlimited  liability  of  members.  All  risk  can. 
he  safeguarded  by  a  standing  order  limiting  the  sum  to  be  lent  to  any 
individual  member,  ^vitho^lt  a  special  resolution  of  a  majority  of  the 
committee  of  management,  and  also  the  total  amount  to  be  loaned. 
It  is  also  vital  to  the  success  of  the  bank  that  no  person  shall 
be  admitted  as  a  member  who  has  not  a  high  character  for  sobriety, 
honesty,  and  integrity.  Unless  members  of  co-operative  banks  are 
persons  of  good  character  capitalists  have  no  security  in  lending  to- 
them,  and  will  naturally  abstain  from  doing  so.  An  entrance  fee 
of  fid.  maj'  be  charged.  '  It  is  not  necessary  to  have  sliares,  but  if 
they  are  adopted  they  can  be  as  low  as  2s.  fid.  or  5s.,  payable  by 
instalments,  so  that  even  the  poorest  may  not  be  excluded. 
In  order  that  members  shall  be  fully  acquainted  with  one- 
another  it  is  absolutely  necessary  to  limit  the  area  of  each  society  to- 
a  small  district.  When  one  parish  is  too  small,  two  or  three  can  be 
joined  together.  The  ideal  population  for  a  bank  district  is  between 
1000  and  2000. 
Each  member  has  one  vote  only,  and  should  fully  realise  that  he. 
is  responsible  for  the  transactions  of  the  bank.  There  must  be  an 
executive  committee,  secretary,  treasurer,  and  board  of  supervision,- 
elected  at  annual  or  quarterly  meetings  of  the  whole  membership. 
The  duties  of  the  committee  are  to  admit  members,  grant  loans,  and 
fix  the  rate  of  interest  for  borrowers  and  depositors. 
Loans  are  only  granted  to  members.  They  are  also  granted 
solely  for  profitable,  productive,  or  economic  purposes,  such  as  the 
purchase  of  manure,  seeds,  poultry,  pigs,  cows,  greenhouses.  Full 
time  will  be  allowed  for  the  borrower  to  make  his  profit  out  of  the 
loan  before  repayment.  As  no  dividends  are  paid  to  members,  the 
rate  of  interest  will  be  the  lowest  possible,  co-operative  banks  being 
run  in  the  interests  of  the  borrowers  ;  members  making  their  profit 
by  means  of,  but  outside  of  the  bank. 
Every  applicant  for  a  loan  must  offer  in  addition  to  his  own- 
personal  security,  that  of  one  or  two  of  his  friends  w'ho  are  willing 
to  guarantee  to  repay  the  loan  in  full  to  the  bank  with  interest,  if 
the  apjdicant  himself  fails  to  do  so.  The  executive  committee  must 
satisfy  themselves  as  to  the  reliability  of  these  sureties. 
The  bank  will  receive  deposits  and  pay  thereon  at  least  3  per 
cent,  interest,  which  is  more  than  the  Post  Office  Savings  Bank, 
The  security  offered  is  the  joint  unlimited  liability  of  all  the 
members,  combined  with  regular  statements  of  accounts  and  a  yearly 
public  audit.  Bj^  depositing  their  savings  in  a  bank  of  this  kind,, 
men  and  women  will  not  only  secure  more  interest,  but  be  helping 
their  neighbours  by  circulating  money  in  their  own  districts  for 
productive  purposes,  under  proper  safeguards.  The  deposit  depart¬ 
ment  also  afi'ords  a  useful  opportunity  for  richer  people,  who  do  not 
require  to  borrow,  to  assist  in  this  movement  for  raising  the  tone, 
of  village  life  without  giving,  which  it  is  believed  will  be  fully  taken 
advantage  of.  A  set  of  model  rules  and  also  any  further  information 
required  to  start  a  co-opera,tive  bank  on  the  above  lines  at  once  m. 
affiliation  with  the  Central  Association,  may  be  obtained  from  the- 
Organizing  Secretary.  —  Henry'  C.  Dea’INE,  Co-operative  Banks 
Association,  29,  Old  (Jucen  Street,  Westminster,  S.  ^\. 
A  few  illustrations  Avill  give  some  idea  of  the  possibilities, 
of  usefulness  of  such  societies:  — 
Case  1.— A  farm  labourer,  an  industrious  man,  who  had 
brought  up  a  large  family,  and  had  managed  to  save  a 
little  money.  He  took  half  an  acre,  then  three  aci'es  and 
the  proverbial  coav.  Then,  when  nearly  sixty  years  old, 
seized  the  opportunity  to  hire  a  small  farm  of  fifty  acres, 
which  he  managed  to  enter  and  stock,  except  Avith  sheep. 
To  purchase  these,  the  society  granted  him  a  loan  of  £30 
on  the  security  of  his*  live  and  dead  stock  and  corn  in  stack, 
AA'hich  he  insured  at  the  instance  of  the  society  for  £I50. 
But  for  this  loan  the  borroAver  Avould  have  had  to  sell  his 
sheep  food  to  his  OAvn  loss,  and  to  the  damage  of  the  farm. 
Having  punctually  discharged  his  debt,  he  applied  for  a 
fresh  loan  of  £40,  again  to  buy  sheep,  as  his  roots  were 
more  plentiful  than  during  the  previous  season.  The  loan 
was  granted  on  the  same  security  as  before,  and  duly  dis¬ 
charged.  A  further  sum  of  £20  was  granted,  and  paid  off  tO' 
the  day.  After  a  year  the  borroAver  saAv  a  chance  of  placing 
his  sons  on  a  small  farm,  AA'hich  he  practically  stocked  for 
them.  In  order  to  do  this,  hoAA^ever,  and  replenish  his  own 
holding,  he  applied  for  another  loan  of  £50,  Avhich  was 
granted  on  the  same  security.  This  chain  of  loans,  there¬ 
fore,  assisted  in  starting  the  tenants  of  tAvo  small  holdings, 
and  it  is  estimated  that  if  the  original  borrower  were  now 
to  go  out  of  farming  after  six  years,  he  Avould  be  found  to 
have  quadrupled  the  capital  Avith  which  he  started. 
Case  2. — One  member  borrowed  £l0,  and  bought  some 
ewes,  which,  with  their  produce,  more  than  doubled  the 
amount  before  the  time  of  repayment  (twelve  months) 
arrived.  .  ,  . 
-  Case  3.— A  £20  loan  to  another  member  to  repair  his 
Cucumber  and  Tomato  houses  preA^ented  them  going  further 
into  decay,  and  probably  getting  past  repair.  _  - 
Many  other  equally  striking  examples  might  be  given ; 
