Crédit Agricole
INTERVIEW WITH M. DECHARME, CHEF DU SERVICE DU CRÉDIT MUTUEL ET DE LA COOPÉRATION AGRICOLE AT THE MINISTÈRE DE L'AGRICULTURE[183]
Q. What is the nature of the business of the Crédit Agricole and when was it instituted?
A. The first law was in 1899. The first bank was opened in 1900. The Crédit Agricole is based upon local organisations. France is divided into 86 departments, in each of which we are to have a regional bank (caisse régionale); and we hope eventually to have a local office (caisse locale) in each commune of each department. Among these 36,000 communes there are many which are cities, which naturally would not have agricultural banks. There are only 2 out of the 86 departments in France which have not already established a regional bank.
Q. Who furnishes the capital?
A. The basis of the system is the local office of the Crédit Agricole in which each member—local farmers—has one or many shares of 20 francs, but on which he has to pay only 5 francs down. On payment of these 5 francs he becomes a stockholder. When a local office has been established it turns all of its capital over to the regional office. Then comes the State which advances to the regional bank an amount four times the capital which has been subscribed by the local banks. The money given by the Government is not really given; it is lent without charge, without interest.
Q. For what purposes can this capital be used?
A. The regional office does not lend directly to the farmers; it lends to the local office, and the local office has a board of directors which examines the demands of the various members.
Q. Under what conditions do they make loans to farmers, and are their loans confined entirely to people engaged in agriculture?