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would be actually withdrawn or advanced. All loans to be for a fixed period, and the interest paid half-yearly or at other stated times. The only "State aid" or supervision required would be the annual audit and inspection. I feel sure that once the benefits of People's Co-operative Banks come to be known, and form a part of the work of our established associations for the benefit of the agricultural industry we are representing to-day at this Conference, so soon will a new and prosperous future be opened to the "men on the soil."

The management of such associations is of necessity the most important. It has been argued that our farmers are not educated in business matters; that there will be divided counsels; that the requisite confidence will not be placed in their respective secretaries or managers sufficient to make success a certainty, and that therefore it will be impossible to compete with the individual capitalist. Such objections appear to be theoretically unanswerable, but they will be completely refuted by the examples of success which can be found in the countries of the old world, and even in Australia, where such associations are now formed on sound lines, without undue influence of one shareholder over the other, and where only the greater amount of business transacted may give more in financial returns to one member than to another. If such institutions were started in connection with our societies, where the credit of a member is endorsed by two or three other members, who guarantee that the loan so applied for is to be put to such uses, it must have a most beneficent and marked effect in the progress and development of our agricultural resources.

The first co-operative body established in the old country commenced operations at Rochdale. This was followed immediately afterwards, by the town of Leeds starting a co-operative flour-mill, in the year 1849-50; and although these two societies had in 15 years from the start done business to the extent of more than £1,000,000, they had not to set off £10 for bad debts. The societies of Italy are a marvellous example of what can be done by combined effort. In the year 1883, a few persons met in a back room in the city of Milan, whose joint capital only amounted to the modest sum of £28. (This was the exact sum that the Rochdale pioneers, by a strange coincidence, started with.) But the Co-operative Bank of Milan to-day has a share capital of £600,000; employs 100 clerks, 140 to 150 honorary officers; and an immense sum passes over its counters every year— all lent to the poor and industrious peasants of Italy to develop and create employment and wealth for themselves. In the Empire of Austria, the Government have passed a Bill (1896) making co-operation compulsory amongst farmers. So great is the benefit conferred by this legislation that in the year 1895 the official returns issued showed there were no less than 1,916 co-operative societies established, and in the same year no less than 994 credit banks. I can also refer to the agricultural people's banks of Ireland, which were started by the Irish Agricultural Organisation Society, which commenced operations at Doneraile, in County Cork, in the year 1895, having for its objects "to improve the condition of the agricultural population of Ireland" by teaching the principles and methods of co-operation as applied to farming and its allied industries, and which have been a great help and assistance to the poorer agricultural classes, who are enabled to borrow on personal credit or on the security of others from the village bank. The timely assistance given enabled "poor Pat" to do a great deal on his little farm or holding which he would otherwise not have been able to do. Coming nearer to our own doors, I could draw attention to the success of the Farmers' Co-operative Societies of New Zealand, Tasmania, South Australia, and New South Wales. For one illustration, I will refer to the Co-operative Wool and Produce Company of Sydney, whose commission charges are 33 per cent. on sales, and who, on their second season's sales from 33,066 bales of wool consigned to them, showed a net profit of £5,394 4s. 1d., or a saving of 3s. 6d. per bale on the usual woolbroker's charges of 6 per cent. Surely then this question of extended association work, for its economic value, is worthy of every serious consideration and practical support. By co-operating together, if only for marketing purposes, the complaints that are now heard on every hand of the excessive rates and charges for the disposal of our products, and which are an unfair and burdensome tax, would be no longer heard. It is the charges that are now being made that have reduced the margin of profit to the producer to such an extent that the development of the agricultural industry is seriously retarded. But if our associations and societies will awake from the apathetic state into which some seem to have fallen; if they will decide to be more practical and keep abreast of the times; if they will start such institutions as are being advocated all over the world, by which the producer is to become a working partner in a thriving joint stock concern, the latter will be at once advanced into a different social grade. He will no longer be the hard over-worked, wet or dry, from daylight to dark producer, who toils on from year to year, without any cessation, to produce crops that have in some cases to assist in keeping four or five other individuals (before reaching

the consumer) on the results of his labour, and leaving in some instances a debit balance instead of a just reward. No; he knows that under the benign influences of association and co-operation with others fair values will be maintained, the markets will be regulated, and the better the product the better will be the price for his goods. He will also be assisting to build up an institution that cannot fail to succeed if properly safeguarded in its operations and management. I could enlarge on the benefits to be derived from affiliation of one association with the other, organised together for the various objects of common interest, particularly in the marketing and distributing of our products. Let me take, as an illustration, the farmers of the Logan, Lockyer, Laidley, and Gatton districts combining together to establish a market at South Brisbane, where already are to be found cold stores erected, each of these districts having railway communication already established right on to the market reserve, and where there are shipping facilities available, vessels of the largest size being able to lie right alongside the wharves. Now, I would suggest this to the favourable consideration of the districts I have named. By the establishment of such a market under joint control with the municipality, by the appointment of an auctioneer by the associations collectively to conduct all business and sales at a fixed salary, the result must be the breaking down of the rings of buyers and middlemen who are running the existing markets, and abusing the confidence of our producers, by the poor returns and the heavy charges made. Before closing this paper on our associations and their work, I may state that I have been particularly requested to tender the thanks of the Logan Farming and Industrial Association to the Department of Agriculture and its officers for the valuable information received through the medium of the Agricultural Journal. Its monthly issue is eagerly looked forward to, and its pages severely criticised, the matter circulated being the subject of frequent discussions, and its teachings experimented upon by our local producers. The results of its teachings must have a marked effect and place in the future development of the resources of our colony, as supplying a long-felt want.

In thus considering our social and economical position, as regard asssociation work, I know I have indicated a slight departure from old-established ideas and forms. But we must move with the times. One would never think of using the appliances, implements, and methods which were employed in the days of our forefathers. So with our agricultural societies and associations. Old-fashioned methods and ideas of what was required by our early societies must be abandoned or else combined with methods of practical utility. Sociability and friendship in our meetings, and economic principles and innovations must be recognised and accepted. With true co-operation as the order of the day, and with our better systems of producing, distributing, and banking, our agriculturists and workers on the land will find the true solution of our economic problems and a realisation of the dream of “industrial peace.”

Mr. PEEK then laid on the table the following draft of a Bill intended for existing societies or associations who are desirous of extending their usefulness. The Bill is entitled

AN AGRICULTURAL BANK FOR LOANS, TRADING, AND OTHER PURPOSES.

1. It having become advisable, and for the benefit of members, to further increase the powers and usefulness of this association, it is agreed that a certain sum of money shall be subscribed by each member in forming such extension for the purposes of mutual help and assistance, as hereinafter set forth. Such funds to be applied to the use and benefit of members contributing to such bank or fund for co-operative purposes. 2. Membership shall be open to all persons over the age of 18 years.

3. Capital. The capital shall be raised by shares, which shall be issued from time to time as required, shares to be of £1 each in value. No member to hold more than 20 shares.

4. Payment on account of shares can be made monthly at the usual meetings of the association till such time as such number of shares are fully paid up, the payments being at the rate of 2s. 6d. per share per month.

5. Shares may be transferred, but only to any other member of the association, who cannot hold at any time more than 20 shares in all.

6. Directors shall be appointed by the members of the association being shareholders, such members to have been clear on the roll-book for not less than 12 months. The number of directors shall be not less than 9 in number.

7. Directors shall be elected by ballot, each shareholder having one vote, each branch electing one director, and the balance being made up from the general body of shareholders.

8. A director shall be disqualified or removed from office if he is a party to any dealings or sales by which he uses his position to his own special benefit; if he ceases to hold shares; if he is absent from three consecutive meetings of the council of directors without leave; or if he is concerned in, or participates in, any contract with the association other than the ordinary business as a member and shareholder of the association.

9. At the annual meeting held in January of each year three directors shall retire, who shall be eligible for re-election, and any casual vacancy (occurring in the number of directors) shall be filled by referring the same to the council or branch of the association as may be, who shall elect any other qualified member to act as director, to sit and fulfil such office only till such time as the vacating director would have retained office had no vacancy occurred.

10. The services of directors to be honorary, but the ordinary council of the association may determine upon any grant or remuneration for services rendered to the association, and may vote any such amount as may be deemed by them necessary for such services.

11. Any officer or member guilty of misdemeanour shall be disqualified from all privileges of the association, the same to be by a majority vote of the council or association.

12. The expulsion of any member shall not be subject to any appeal to law, nor shall any member or branch be entitled to any refund or compensation for moneys paid or services rendered whilst in membership other than by the sale or transfer of any shares which he may hold to other members of the association.

13. The secretary or manager shall be nominated by the council, and shall be appointed by a majority vote of the shareholders. He shall have control of all business, keep all documents, books, &c., and act as general agent on behalf of the association. Payment for his services to be fixed by the council, and he shall be indemnified by the society against all losses and expenses incurred by him in and about the discharge of his duties, except such as happen by his own wilful act or default.

14. Provided that the directors shall not, without the sanction of the association's council, exercise any powers or incur any liabilities except those conferred and stated herein-i.e., only such as may be requisite for the due management and proper carrying out ot any business acquired or undertaken by the association, and approved at their ordinary or special meetings.

15. The directors may, in their management of the business of the society, subject to the restrictions herein contained, commence (upon the registration of this association) to do business in the name and on behalf of the society, as follows:

A.

The directors may buy, sell, and dispose of all or any farm and other products, in such manner as shall ensure the return to the members and shareholders of the full value of their products or requirements, less fair and reasonable expenses and charges incidental to the sale or disposal of the same.

B.

The directors may make arrangements for the grading of produce, shipping or importing, &c. (as the case may be), also for holding sales by auction, regulating markets, and for affording better means of distribution among members.

C.

The directors shall establish a system by which, after providing for all reasonable and incidental expenses, any surplus will be returned to the shareholders and suppliers of produce in the form of bonuses calculated on the quantity of produce supplied or on purchases made.

The directors may make loans and advances from the association funds on good security, the advances to be for members of the association only. Such loans to be divided into classes as follows:

Class 1.-Advances can only be made for the purposes of making or effecting improvements, and no advance can be made on land which is otherwise encumbered, nor will any security over fee-simple lands other than a first mortgage be accepted as sufficient. When advances are required upon lands held under conditional purchase, the applicant will be required to execute an absolute transfer of all his right, title, and interest in such land, together with all improvements thereon, to the council of the association,

Class 2.-Advances may be made for the purchase of seeds, implements, machinery, &c., &c., all applications for loans in this class to be endorsed and recommended by not less than three members of the association, who shall be satisfied that the advances so desired will be used for such purposes.

Class 3.-Advances may be made to a district branch of the association (collectively) whose members are interested in a specified product, requiring the erection of machinery, such as rice or flour mills, butter or bacon factories, jam factories, creameries, &c. Also irrigation or drainage works, by which the whole of such district may receive a general benefit. Such loans or advances are not to exceed one-third of the total cost of the proposed work, and the application for such loan must be carried by a three-fourths majority vote of the members of such district branch.

Class 4.-Advances can be made from the association funds to assist the local bodies or others in the eradication of insect pests, noxious birds, and other animals, diseases in plants, &c., such advances to be made only by special vote of the association through the association council, who shall consider the application, and make such order relating thereto as the exigencies of the case shall appear to demand.

16. In cases where application for a loan is made, and where in the opinion of the directors ample security or credit is given for any of the before-mentioned works or advances as desired, such advances and loans may be made, in such proportion as may be desirable and at such times as the board of directors may appoint. All expenses for stamping and registering shall be paid by the borrowers. Valuations, drawing up of agreements, &c., shall be done free; but a charge of 1 per cent. will be charged upon application for a loan.

17. Interest at the rate of £5 per centum per annum or part thereof will be charged on all advances, and such interest shall be paid half-yearly. Interest will only be charged on the amount of loan actually obtained, or on advance made, or on such proportion of the loan as the applicant may have drawn.

18. All loans shall extend and have a currency for not more than 2 years, and shall be repaid with all interest due at that time. But an extension of time not exceeding one year may be granted by the directors should they consider the case of sufficient importance to warrant such extension.

19. The directors shall have power to defend, conduct, compromise, or bring any dispute to arbitration, and may abandon any legal proceedings or other claims by and against the association and the officers thereof, and deal with all other matters concerning the welfare of the association.

20. The directors may draw, accept, make, endorse, transfer, discount, guarantee, or negotiate such cheques, bills of exchange, promissory notes, deposit notes, and other obligations as may seem to them expedient for the purposes of the business of the association. Any such bill, promissory note, &c., shall be made, endorsed, or accepted by not less than three directors, and the seal or stamp of the association shall not be affixed to any instrument except by the authority of a resolution of the directors and in the presence of three directors who shall sign every instrument to which the seal is affixed in their presence.

21. The directors shall cause a minute to be kept of all appointments of officers, and a record of all directors present at meetings, also a record of all business transacted, all resolutions, minutes, votes, and proceedings, and shall produce such book at any reasonable time for the inspection of any shareholder being a member of the association.

22. The directors may declare a dividend to be paid to the shareholders in proportion to their shares. No dividend shall be payable except out of the profits arising from the business of the association.

23. The directors may deduct from any dividend coming due any moneys owing by a participating shareholder to the funds of the association. They may before recommending a dividend set aside out of the profits such a sum as they may deem necessary as a reserve fund to meet any unforeseen contingencies.

24. The directors shall at the end of each year prepare and lay upon the table a true statement of the business transacted during the year, showing all credits and liabilities.

25. The association shall appoint auditors, two or more in number, who shall be shareholders holding not less than ten shares each, and no person shall be eligible as an auditor who is personally interested in any transaction with the association other than as an ordinary member, and no director or other officer of the association or its branches shall be eligible to act as auditor during his continuance in office.

26. The directors shall have the power to pay out of the profits of the business a bonus to all consignors or persons trading with the association other than members or shareholders, in proportion to their trade and dealings.

On the conclusion of Mr. Peek's paper, the following was read

AGRICULTURAL CREDIT; OR, CHEAP MONEY FOR FARMERS.

[By Dr. THOMATIS, of Caravonica Park, Cairns.]

Mr. CHAIRMAN and GENTLEMEN,-You will agree with me, I am sure, that the subject I have taken for my paper is highly important, and as it has been almost my lifelong study I have chosen it for this occasion before the representatives of the white agriculturists of whole Queensland. Electricity and magnetism are said to bind together the world - in fact, the whole creation; to wit, electric telegraphy and telephony and being inherent with the matter, it transmits its action from molecule to molecule, from one pole to the other of the earth even without wires. Now, gentlemen, what electricity is to the material world, credit is to the human world or society. Credit has already proved itself to be not only the tie that binds society together, but also the quickening spirit or principle, so to say, that animates all actions of man. Credit has already been applied to almost all branches of business, and money or currency has been from the earliest ages till recently the visible, tangible, and outward sign of credit, be it in shells amongst the ancient Greeks and Egyptians, salt or tobacco by the Nubians, or cattle and sheep by the old Romans (hence the origin of our words pecunia and pecuniary), or at last be it gold and silver as in our present more advanced circulation. But recently even the latest improvement in the said outward sign in the shape of gold and silver coin has been again improved in the shape of bills of exchange, promissory-notes, circular-letters of credit, bank-notes, and, latest of all, State Treasury notes. All this is sneeringly styled paper money, but should be, in my opinion, sublimely called Human or Rational money. The time will come, and very soon, when gold and silver will be completely abandoned as the outward sign of money and wealth, just as shells, salt, tobacco, and cattle have been abandoned. Silver is, in fact, already almost discarded, and with the spread of the economic science gold will also be given up as coin. The mercantile class has already bank-notes; it is now time that also the agricultural class should have their agricultural notes. In fact, this was nearly done thirty years ago, and for the first time in Italy and France-the two countries from which the English people received knowledge of banks, bills of exchange, five or six centuries ago. Now, gentlemen, I shall briefly state how agricultural credit has originated and developed itself on the continent of Europe, for I am sorry to say it has not yet been introduced in Great Britain, although it would be one of the most effective measures to economically liberate Ireland, and also to relieve the present agricultural depression in England, as I had the honour to suggest to the late W. E. Gladstone twenty-five years ago. It is said necessity is the mother of all invention, so it has been in regard to the agricultural credit. In 1851, after the terrible political and financial strifes, which for a while paralysed the territorial resources, the farmers of France appealed to their new Emperor, Napoleon III., to assist them, which was done by the Government supplying them with sums of money on very easy terms under the name of credit foncier,' which brought about wonderful benefits. Still it was as yet merely a State loan of money to be repaid, and such loan, as all loans, was subject to many conditions, and granted merely for that occasion. This, however, set economists athinking; and after the gigantic fights of the people of Italy and Germany to become free, independent, and united, their territorial reforms were greatly paralysed, and metallic money had become so scarce in these two countries, and indeed in France, and I may say in Austria also, owing to its exportation in order to purchase the materials of war, that I well remember a coin, not only of gold or silver, but even of copper, was a rare sight. The monetary crisis was so intense that not only merchants, but butchers, bakers, barbers, cabmen, and all sorts and conditions of men had to resort to print and issue currency notes of their own of the value of from £1 to 1s., and even 6d. ! The Government did not interfere, adopting the maxim of "Laissez faire, laissez passer!"—or, "Do as you please," simply because it was not then a necessity. Then landowners and farmers, in order to be able to carry on their daily transactions, I am glad to say, did the same. In less than a year not thousands but millions of these notes were issued and circulated, and got intermixed, and it was a common occurrence to see sixpenny notes issued from one corner of the State in the hands of people at the other extremity, and, wonderful to relate, they were accepted without comment, murmur fear, or distrust. This, however, could not be called a satisfactory state of things, and so all the farmers of a district clubbed together, formed an agricultural circle or committee, which, on behalf and with the security of the farmers so leagued, issued district agricultural notes. Then larger circles were formed in each province, and finally one national association was organised for the whole nation, and at last, ten years ago, the

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