§ Mr. HAMERSLEYasked the President of the Board of Agriculture whether any arrangements have been made with the joint stock banks to make advances to rural credit banks; if so, what interest will be charged on advances; and what conditions will be imposed on rural credit banks obtaining such advances?
1904W
§ Mr. RUNCIMANThe Board of Agriculture and Fisheries have been in communication with the leading joint stock banks which have branches in the rural districts with regard to the assistance which the banks can offer, in accordance with ordinary banking principles, to registered co-operative credit societies, consisting mainly of small holders and allotment holders. The banks named below are willing that the manager of any of their country branches should have permission to assist in the formation of such a society, with liberty to give advice to its officers on matters of book-keeping, and to take part, when requested, in the audit of the annual return without remuneration. They will also favourably consider the acceptance by their managers of the post of unpaid treasurer. provided that it does not involve membership of the society. These banks are prepared to allow to such a society as good rates as possible for money in their hands. They will also be prepared to give favourable consideration to applications from such societies for advances, but will require in each case to be satisfied as to the security for the loan, and although they will require it to be made repayable on demand, they will in general practice be ready to lend for twelve months, and the loan will then be subject to repayment, renewal or reduction. If satisfied that the joint liability of the members of the society under its rules constitutes an adequate security for a proposed loan, the bank will require no further guarantee for its repayment. In considering the question of security, it should be borne in mind that, under the model rules for a society registered under the Friendly Societies Act, every member of the society is equally with every other member, jointly and severally liable for all debts incurred by the society. The rate of interest to be charged on approved advances to such societies will be a favourable fixed rate, subject to a year's notice of alteration. It will thus be seen that the committee of any registered agricultural co-operative credit society may apply with some confidence to the local branch manager of any of these banks for advice and help in matters of bookkeeping, accounts, and audit, and that if they wish to obtain an advance from the bank, and are able to satisfy the manager and directors that the security for repayment is sufficient, they may expect that their application for a loan will be granted on these favourable terms. A supplementary 1905W list of other banks which may agree to the above arrangements will be published at a future date.
List of Banks.
- Bank of Liverpool.
- Barclay and Company.
- Beckett and Company.
- Capital and Counties Bank.
- Fox, Fowler and Company, Wellington, Somerset.
- Lincoln and Lindsey Banking Company.
- Lloyds Bank.
- London County and Westminster Bank.
- London and Provincial Bank.
- London and South-Western Bank.
- Manchester and Liverpool District Banking Company.
- Metropolitan Bank of England and Wales, Birmingham.
- National Provincial Bank of England.
- Nottingham and Notts Banking Company.
- Parr's Bank.
- Union Bank of Manchester.
- United Counties Bank.
- Union of London and Smiths' Bank.
- Williams Deacon's Bank.
- Wilts and Dorset Banking Company.