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of the sum available for agricultural credit from the Bank of France. In 1910 a further Act improved the system of individual long-term credit, and small loans up to 8,000 francs were made available through the agency of the " local funds." The legislation of 1920 increased the number of groups known as " local funds " in the year 1923 to 5,202 and the membership to 284,286. The Central Office is responsible to a plenary Commission appointed by the Legislature, whilst the Commission meets at intervals to review the whole situation. A decree of 1924 permits the distribution of the available funds as follows : 30 per cent, for short-term and intermediate credit, 45 per cent, for long-term credit to individuals, and 25 per cent, for long-term credit through the societies. Several minor Acts conferring powers in connection with electrical development, special terms to ex-Service men, &c., have also been passed. Under the law of 1920 there is first the small community bank or society, second the regional or district bank, and thirdly and lastly the National Societe Agricole itself. The capital of the central institution at present amounts to 50,000.000 francs, and the reserves to 50,000,000 francs. The deposits of inditotal 300,000,000 francs, and 700,000,000 francs are supplied by the Bank of France, interest-free, until 1999. In addition, the Bank of France pays a tax on the balance of annual profits running into millions of francs per annum, which, by arrangement with the Ministry of Finance, is used for agricultural credit, interest being payable to the State. In sp te of the severe financial conditions existing in France, many regional banks have paid off a considerable portion of the money advanced, 180,000,000 francs having been paid on a capital of 600,000,000 francs. The sum of 70,000,000 francs has been loaned by the National Office on short-term 550,000,000 francs applied to this purpose by the regional banks. The system therefore provides for four classes of loans —viz., short-term, intermediate-term, long-term, and special-term loans for special purposes, such as irrigation, soldier settlements, &c. Each regional bank receives four times the amount of its paid-up capital from the Government through the Bank of France, and this sum is used as a reserve fund on deposit with the Bank of France to secure the necessary credit for discounting purposes. State aid is not given directly to the local banks, but to the regional banks, which make direct loans to members on endorsement by the local bank. Regional banks not only fulfil important functions in the distribution of funds, but they also endorse the bills of the local banks ; and, as the law of France requires that the farmers' notes shall receive three endorsements, they provide the third, being provided by the local bank and the s 'first by the farmer himself. Loans are granted only for the purpose of farming requirements. The stocks and bonds created by the realization of these loans can be a first charge on the resources of the local banks, or on their deposits ; but they come chiefly from the funds which the National Office grants for this purpose to the regional banks. Short-term loans for the purpose of enabling the farmer to pay his working-expenses are not restricted in amount by law ; the sum is fixed by the lending bank, which takes into consideration the worth of the business to be dealt with, the farming abilities of the borrower, and the guarantees he can submit. The duration of these cannot exceed that of the transaction for which they are appropriated, and must not be longer than a year. The rate of interest is not fixed bv law. An amending enactment of 1921 stipulates only that it cannot be less than the interest paid on the associated shares of the len ding-bank nor more than 1 per cent, higher than the rate of discount of the Bank of France, which in 1925 was 5 per cent. Intermediate loans are reserved for the management and reorganization of farming lands, and may be applied for to purchase live-stock or plant and for permanent improvements or buildings. The maximum amount is not fixed by law, but the longest duration of the loan is ten years, redeemable by amortization. The provision for the rate of interest is the same as for short-term loans. Long-term loans are made for the special purpose of facilitating the purchase of small estates. Owing to the strong sentimental regard of the French farmer for the freehold of his inheritance, these loans are chiefly required for the closer settlement of larger estates, and are requisitioned for the sole purpose of purout, converting, or resettling small farms which the borrowers