his school years, it were the height of folly not to keep him so accustomed. Give him the chance never to leave his education behind, and how much of influence for good may the libraries of this country be? I have dwelt but little on the practical side of the questionof how money is to be found for the extension of library privileges and facilities to the scanty populations but your educational authorities have shewn how elementary educational facilities are to be extended-and I doubt not that once the library is recognised as one of the true educational factors of a community, that the state will see its way clear to do its duty. TURAL CO-OPERATION IN RELATION TO THE * [ALL RIGHTS Reserved.] By J. R. K. BARKER, A. INST. OF BANKERs. [ABSTRACT.] Introductory. The demand for an Agricultural or Land Bank for the Transvaal. Agricultural Co-operation the corollary of Agricultural Banks. The central and essential features of the system broadly based on mutual co-operation and virile self-help. Agricultural Banks Generally. The Agricultural Bank of Egypt. People's Banks and Co-operative effort. In Germany, Italy, other European countries, India and the Far East, England and Wales, Scotland and Ireland. Agricultural Co-operation in Cape Colony. Agricultural Co-operative Expert and the practical results achieved. Distressful state of Cape Government Lombard or Loan Bank. the Cape about 1792. Dissatisfaction, agitation, and unrest universal. Colonists in a state of rebellion. Commissioners Mederburgh and Frykenius visit South Africa in June, 1792. The objects of their mission and the powers conferred upon them. Their prolonged and patient investigation. Their supreme remedy, and its intended two-fold nature. Unbounded belief, in former times, in potency and efficacy of inconvertible paper money. Lombard or Loan Bank founded in 1793. Inconvertible paper notes, or "cartoon money," issued to amount of £135,473. Objects, nature of business, and management of the Lombard or Loan Bank. Financial and currency expedients of the Dutch East India Co. Achievements of "high finance" in former days. The Cape taken by the British in 1795. The British promptly assure the face value of the greatly depreciated "cartoon money. The monopoly in trade abolished, and other salutary changes made. 2,000,000 rixdollar notes in circulation in 1803, and in good credit. The Batavian Republic, in 1803, cancel the security, created by the British, of 46 cartoon money,' which soon heavily depreciates in value. Cape, in 1806, becomes a British Colony, and 2,300,000 rix-dollar notes found to be current and very much depreciated in value. The Earl of Caledon establishes circuit courts and abolishes the slave trade, etc. The Government Discount Bank, a Subsidiary State Bank, created in 1808. Capital of Bank 100,000 rix-dollars of inconvertible paper money. Objects, nature of business, and management of the Discount Bank. Lord Charles Somerset regulates the affairs of the Discount Bank. Further issues of inconvertible paper money. 3,000,000 rix-dollar notes in circulation in 1822, and which had greatly depreciated. Value of rix-dollar gradually falls from 4/to 1/6, which represents the Cape dollar. Proclamation of 1825 establishing the British currency at the Cape, etc. Relative value of paper rix-dollar with British money. Nothing done to introduce the precious metals. Inconvertible, sterling promissory notes introduced to retire old rix-dollar notes, or 66 cartoon money." The 37 years' period of depression, discontent and distress at the Cape. Proclamation of 1830, calling in the depreciated, redundant, inconvertible paper money. Proves to be a dead letter. Animated and eloquent debates in Cape Legislative Council of 1840, 1841, and 1843 on paper currency. Strong and sustained agitation for complete and final withdrawal of the inconvertible paper money. Concerted action on part of both British and Dutch colonists. John Bardwell Ebden. The most prominent colonist of his day. Hamilton Ross and Advocate Cloete, both prominent members of the Cape Legislative Council. was Called Hon. William Porter, the Cape Attorney-General, eloquent, high-principled, philanthropic, and disinterested. upon to defend actions of Government in regard to the paper currency. Discharges his responsible brief in no servile spirit. Conspicuous for his independence of thought and action. Opposed, on occasion, prevailing views of the Council, and not afraid to be found in a minority. Was ever courteous, and always gave valid reason for the faith that was in him. Debates in the Council on the paper currency practically intellectual duels between the Attorney-General and Mr. Ebden. Comparison of Mr. Porter's intellectual and dialectical powers with those of Mr. Ebden. Their profound knowledge of principles of currency, finance and economics. The lawyer and the metaphysician; the practical business man with strong philosophical pre-possession. The monopoly of the Lombard and Discount Bank withdrawn by Ordinance No. 5 of 1842. Public Banks established on the joint stock principle by leading colonists. Cape of Good Hope Bank founded by J. B. Ebden in 1836. South African Bank started in 1838. The Directors, as a whole, were British and Dutch, respectively. Lombard and Discount Bank finally wound up on 31st January, 1843Bank. Proposed State Bank for Cape Colony. Various attempts to start a State or National Bank in Cape Colony. Elaborate constitutions suggested or outlined. No satisfactory method suggested for providing the necessary capital. Promoters evinced no desire or intention to personally subscribe even moderate amount of required capital. Various Methods of Raising Capital for Agricultural or Land Banks, etc. I. The issue by the Government of the country of an inconvertible paper currency. This method not recommended, as it is fundamentally vicious and economically unsound. The Cape Colony experienced, in the past, the serious and inevitable evils arising from an inconvertible paper currency having a forced circulation, which thus became redundant and greatly depreciated in value. A convertible or inconvertible paper currency, in our case, would ultimately require to be redeemed on a gold basis. II. The issue of a large loan for agricultural development purposes. The rate of interest on Government loans depends upon the relative degree of credit employed by the Government in question. The Transvaal has relatively a large public debt of £35,000,000, guaranteed by the Imperial Government, the interest consequently being only 3% per annum. The Transvaal has also a contingent liability of £30,000,000, as a war contribution from the Colony to the Mother Country. Under these circumstances, the issue of a large loan for agricultural development purposes would be the height of financial folly; and interest at rate of 3% per annum would probably have to be paid. The Cape Colony and Natal are able to place their Consolidated Inscribed Stock at 3% per annum on the London Market. A loan, large or small, would have to be ultimately redeemed. III. The manner in which the capital of the European State Banks, strictly so called, has been raised. The capital of the Bank de l'Etat of Russia; of the Ricksbank of Sweden, and of the National Bank of Bulgaria, was provided by the respective States out of public funds. This IV. The capital of two quasi State Banks-the Norges Bank (Bank of Norway) and the National Danish Bank-was provided by levies or enforced assessment on landed property or real estate. principle may be found suitable to our present circumstances, as vast tracts of grazing, and agricultural land, throughout the Transvaal, held by powerful companies, etc., are not beneficially occupied. Such a levy or enforced assessment on farm property would be a legitimate and sound method in which to provide the capital of a local Agricultural or Land Bank. The principle may probably prove to be unpopular; but it is necessary to choose the lesser of two probable evils, present or prospective. The landowners would be admitted as shareholders, without further liability, of proposed bank in proportion to their contributions towards the capital fund. A suggestion for an Agricultural or Land Bank for the Transvaal. The Transvaal Government has at hand an organisation which, if taken proper advantage of, would meet the financial requirements of the agricultural section of the Colony for considerable future period. All the monies of the "Guardians' Fund" and the deposits of the Post Office Savings' Bank should, after serving 25% to 30% in cash, be regarded as a general fund to be invested on mortgages of farm property only. This would be a direct and substantial encouragement of agriculture. The method of employing the funds of the |