t. In some cases the
Congested Districts Board or the Department of Agriculture have made
loans to these banks at three per cent. This enables the societies to
lend at the popular rate of one penny for the use of one pound for a
month. The expenses of administration are very small. As the credit of
these associations develops, they will become a depository for the
savings of the community, to the great advantage of both lender and
borrower. The latter generally makes an enormous profit out of these
loans, which have accordingly gained the name of 'the lucky money,' and
we find, in practice, that he always repays the association and almost
invariably with punctuality.

The sketch I have given of the agricultural banks will, perhaps, be
sufficient to show what an immense educational and economic benefit they
are likely to confer when they are widely extended throughout Ireland,
as I hope they will be in the near future. Under this system, which, to
quote the report of the Indian Famine Commission, 1901, 'separates the
working bees from the drones,' the industrious men of the community who
had no clear idea before of the meaning or functions of capital or
credit, and who were generally unable to get capital into their industry
except at exorbitant rates of interest and upon unsuitable terms, are
now able to get, not always, indeed, all the money they want, but all
the money they can well employ for the improvement of their industry.
There is no fear of rash investment of capital in enterprises believed
to be, but not in reality productive--the committee take good care of
that. The whole community is taught the difference between borrowing to
spend and borrowing to make. You have the collective wisdom of the best
men in the association helping the borrower to decide whether he ought
to borrow or not, and then assisting him, if only from motives of
self-interest, to make the loan fulfil the purpose for which it was
made. I was delighted to find when I was making an enquiry into the
working of the system that, whereas the debt-laden peasants had formerly
concealed their indebtedness, of which they were ashamed, those who were
in debt to the new banks were proud of the fact, as it was the best
testimonial to their character for honesty and industry.[39]

One other sphere of activity worked by the co-operative associations
needs a passing notice. The desire that, together with material
amelioration, there should be a correspon