8.—5.

74

XXIX. All State advances are immediately repayable if regulations are changed or violated in such a way as to weaken or diminish the guarantees of repayment. They may also be withdrawn if it is found that advances are being misapplied by the directors of any society. The State has a preferential charge on the shares of each of the societies which obtains grants. XXX. The regulations for public administration fix the procedure to be followed when granting of loans, also the stipulations that must be included in the regulations of societies that may benefit by these advances. The method and form of the necessary preliminary investigation into the societies, &c., before advances can be made to them is prescribed, and provision is also made for the guarantees to ensure the repayment of advances, also for the supervision to be maintained to ensure the proper application of the loan to the purposes for which it is made. National Office and the Plenary Commission for Agricultural Credits. XXXV. National Oifice created. A public establishment with financial autonomy. Object: To give effect to the present law ; and its main purposes are —(1) The administration and provision of agricultural credit; (2) to administer deposits received by regional banks of mutual agricultural credits; (3) the emission of bonds through the regional banks ; (4) administration of funds granted for the purpose of cultivating abandoned lands. XXXVI. The National Office is governed by a Council of Administration, which is responsible to a Plenary Commission of thirty members, the president of which is the Minister of Agriculture. A fifth of the membership of this Commission will be elected by Senate and Parliament, two-fifths by regional banks, and two-fifths by the Ministers of Finance and Agriculture, selected from the senior administration officers of State. The Plenary Commission will appoint the members of the Council, composed of seven members. Administration : General Director, appointed by Minister of Agriculture, can only be removed on proposition of the Plenary Commission and the Administrative Council; a qualified accountant, who shall be responsible to the Court of Accounts, will be appointed by the Ministers of Finance and Agriculture. XXXVII. The resources of the office will comprise—lncome of deposits ; provision of credit for agriculture; capital repayments ; credits granted by special legislation ; donations, legacies, &c. (In the case of the dissolution the funds derived from this particular source will be transferred by Council of State to specified public institutions that may carry out the original intention of the donors.) XXXVIII. National Council will operate through current account with the Treasury, the Bank of Deposits, and deposits with the Bank of France. The budget of the office is prepared by the Council of Administration, and finally approved by the Ministers of Agriculture and Finance on the advice of the Plenary Commission. The accounts and the report of the account are submitted annually to the Council of Administration, who will report thereon to the Plenary Commission. The definite account is fixed by decree. XL. The service of central credits, co-operation, and agricultural mutuality credit, under the Minister of Agriculture, will be attached to the Office of National Agricultural Credits. Inspection and Control. XLI. The permanent control and inspection of the National Office of Agricultural Credit, of societies, &c., that receive grants from the State, is vested in the National Council. Permanent control and inspection shall be exercised over the National Office and all societies that benefit by State subsidies. XLII. Minister of Agriculture must present full annual report to the President of the Republic. Report published in Official Journal. XLIII. Six months after law promulgated the regulations for public administration will apply. XLIV. Repeals certain legislation—lB94, 1899, 1900, 1901, 1906, 1908, 1910, 1912, 1918, 1919, &e. (Adopted by Senate.) DECREE OF BANKS OF MUTUAL AGRICULTURAL CREDIT (Extracts from). I. A bank of agricultural credit, before doing business with any regional bank, must be regularly affiliated to that regional bank and have at least one part of its total capital. The members of any caisse without contributed capital must jointly and severally guarantee all the operations of that society, and their regulations must contain this stipulation. 11. Provision for participation of mutual-credit banks founded by law prior to 1920. 111. Annual general meeting to be held by all banks, &c. IV. Banks must not pay more than 6 per cent, interest to shareholders. V. In the event of dissolution, Minister of Agriculture may refuse approval of decision of general meeting to dissolve if the balance is not allotted to one of following : Bank of mutual credit; National Office ; united agricultural syndicate, &c. If local bank has not fixed disposal of surplus, regional bank will notify it to the National Office. If after one month's notice no action is taken, the Minister of Agriculture will name the institution to which surplus shall be transferred. The same procedure applies to regional banks. Regulations affecting Short- and Medium-term Loans. VI. Each borrower must advise local bank of purpose for which loan is required. Military pensioner or civil victim of war can apply direct to regional bank. VII. Interest on short and medium term must not be less than the interest paid to shareholders, and not more than 1 per cent, in excess of the standard rate of interest of the Bank of France.