, 1913-07-09
PROPOSED AGRICULTURAL LOAN
BANKS FOR TRINIDAD.

ago appointed n Committee to consider the
question Of the establishment of Agriculture
al Banks in that Island. This Committee
has reported and the report has been for
warded to the Agricultural Society by the
Colonial Secretary, on the direction OF the
Governor, for an expression of the views of
the Society. The members OF the Commit
tee were not able to agree in their ultimate
findings. A majority Of thtm,-includiug
the Postmaster General, Mr.. Clarence Ross;
the Chief manager of the Governments Saw
inga Bank, Mr.. j.. f. Gutherie the Grown
Solicitor, Nh. H. d. O'Conner and the War
den of Tacarigua, Mr.. Z. Warner declared
that they were bound to report that no prac-
teal scheme could be evolved for the estab-
lishment OF Agricultural Banks in Trinidad.
They expressed regret at beng forced tC az
rive at that conclusion, because they realised
the urgent need for cheap money, but mildly
stated that the evidence before them left them
no other alternative. A minority of the
Committee, comprising the three remaining
members Messre. L. deVerteuil, II. w.
Brathwnite and G.. c. Wyatt, made a sepa-
rate report, in which they submitted that
the colony was not so poverty-strlcken that
its peassntry, which forms the bulk of the
population, could not find the comparatively
small sums required to make o start on q
small scale in o few districts. They were
strengthened in this by the offer Of the Gov
eminent 10 lend FL 900 to aid the establish
ment of Agricultural Banks, on condition
that IN equal sum be provided 10y sharehold-
ers Of the Banks. Evidence was taken by
the Committee on two heads, namely, with
respect to cane farmers and with resp ct to
smaller agrlculturists generally. AS to cane
farmers, there is reported to be no demand
by them for the establishment Of a9rlcul-
tural banks. These farmers are at present
financed by the owners Of the sugar fucto-
Iies to whom they sell their canes, and they
appear to be thoroughly satisfied with the
existing state of affairs. With other small
proprietors and cultivators, however, the case
is quite otherwise. For, the Committee
found that o worry great majority OF the
smaller properties were mortgaged to almost
their full value, and that the owners would
sooner or later lose them, III view OF the high
rate of interest which was being paid, and
which was sometimes as high as 40 per cent.
There are no usury laws in Trinidad. The
majority Of the Comnittee came to the con-
clusion, on the evidence they had taken on
the financially crippled state of the smaller
proprietors, that such proprietors could not
be expected to take shares in the proposed
banks and that the cost Of working an agri-
cultural bank would be SO great as to pre-
clude the working of it if less than 2OT in
terest was charged on its loans. TIL Mirror
com nents strongly on the utter failure of
the Committee to devise some workable
scheme for the establishment of agricultural
banks, although they admit that there is ur-
gent need for such Institutions. Agricul-
tural loan banks aAe urgently needed, be-
cause of the high rate of interest charged
borrowers of small sums and because of the
expenditure incurred in borrowing money on
mortgages or promissory notes. In contrast
with the report Of the majority of the Com
mittee, that of the minority expressed the
opinion that there we're no insurmountable
obstacles in the way and that a practical
scheme could surely be evolved for the es-
adjustment and successful working Of agri-
cultural loan banks. The majority report urg-
ed, on the one hand, that the present inan-
cial embarrassment of the small proprietors
would initiate against the establishment of
agricultural banks whereas the minority re-
port, on the other, maintained that the fact
of such embarrassment indicated the urgent
need for the adoption Of remedial measures
in the form of a supply of cheaper money
Mr.. deVerteuil is stated to have appended @
memo to the minority report giving some
general notions of the working of the "Raif-