Excerpt from The Work of the I. A. O. S

Profitable farming, like any other business, necessi tates the use of credit at certain times and seasons. The Agricultural Bank is the form of combination which has proved to be the most helpful way of deal ing with farmers' credit. Previous to the introduction of these banks the farmer used to run a credit with his local trader, a system which was bad for the farmer, because he lost his independence and sometimes his farm. The has organised about three hundred agricultural banks. These are associations of farmers who pledge their joint credit for the safe-keeping of any money lent to them or deposited. On this joint guarantee they borrow a large sum of money suflicient for the needs of their members at a low rate of interest and lend it out again to these members at a slightly increased rate. Hitherto it has been found possible to borrow money at from three to four per cent. And to lend it out at the popular rate of one penny per pound per month. From his agricultural bank the farmer can borrow in accordance with his needs. Money is only lent for reproductive purposes sanctioned by the Committee of the Society. Interest is not deducted beforehand from the loan, and the length of time for which the money is advanced is determined by the pur pose of the loan. So is the method of repayment. A man borrowing money to buy a milch cow will he get ting his cheque every month from the creamery, and so he can repay by instalments. Another farmer buying young pigs or fertilisers will have to wait six months, maybe, before his beasts are ready or his crops are sold, and he will repay in one sum when he has made his profit out of his loan. The peculiar needs of farmersare met in every way. The societies serve a very use ful purpose in country districts, taking from the wealthy their superfluous capital for which they pay a fair ih terest, and lending it out again to those who require it for reproductive purposes. The money of the district is in this way kept in the district, where it is always producing more money and doing good. The farmers also are instructed in the true use of credit, which is to borrow money to make more money and not merely to fill up some gap by throwing good money after money that is gone. This system, introduced into Ire land by the is the system of credit for farmers which is most widely used over Europe.

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