A. Chayanov stops at important circumstances of the credit: •
the height of interest on loans is entirely determined by the
percentage by which the company may receive funds as a loan or deposit; • terms of outstanding loans should always be consistent with the terms of loans and deposits; •
With the development and consolidation of credit cooperation it will
inevitably absorb as inputs all the free money the village;
complementing public funds and capital from banks, it will make credit
cheaper and available to every farmer, puts it into normal everyday
life; •
the development of co-operative credit and a strong inflow of funds,
with the assistance of his farm in the financial capital in the country
will also have leading and decisive role. Only in this case the capital is the social capital of the population (31, p. 176). The outstanding Russian economist ND Kondratiev
in 1925 in "a forward plan for agriculture and forestry," stated: "...
particular importance we attach to the mobilization of financial
resources of the peasant population by credit cooperatives." Indeed,
while on the decline of the NEP, the most common type of cooperative
societies in all groups of the peasantry was consumer cooperatives, but
owing to the obvious lack of savings in their own farm was a natural
incentive to develop and credit cooperatives. It is this type of cooperatives formed the basis of the cooperative movement in the country 20-ies Relatively
high degree of coverage of the domestic peasant cooperative activities
in the field of commodity-money circulation was associated with clear
benefits that co-operation, as evidenced by the ratio of the gross
income of households and the extent of their cooperation. But in the mid 20-ies was
tasked with the elimination of independent credit cooperation with the
replacement of its agri-credit cooperative, combining credit, supply and
brokering, trading in consumer goods. The
proposed solution is aimed to strengthen the monopoly of the state of
the banking system virtually eliminated the credit cooperation, since
the dissolution of her cooperation in agriculture leads to a sharp
decrease in efficiency lending.
Credit Union
