IRRIGATION.--Irrigation has been practiced in the Philippines in some form for centuries, for, in general, it may be said that the certainty of a rice harvest depends upon irrigation to supplement the natural rainfall. When the rainfall is copious and well distributed during the rice growing season, there is little demand for artificial irrigation but in the event of a drought or irregular rainfall irrigation has to be used to insure a normal rice crop. With irrigation it is also possible to grow two crops of rice a year, whereas without it the planting of one is often hazardous. Prior to 1908 very little attention was given to the development of irrigation systems so that the only irrigation works constructed were by private and communal enterprise. These old systems are found in different parts of the Islands, the most notable being the extensive systems with permanent dams, tunnels, and ditches constructed by the friars and the remarkable side hill terraces built by the mountain people in the subprovince of Ifugao. Studies of irrigation possibilities have now advanced sufficiently to warrant the Bureau of Public Works recommending a ten-year program for the construction of 40 irrigation systems in 20 of the principal rice producing provinces to water an area of approximately 750,000 acres. It is estimated that these 40 systems will cost about $25,000,000. With these systems completed and operating, there will be no further need of importing rice from other countries. [Rural Credit] RURAL CREDIT ASSOCIATIONS.--The Rural Credit Law has removed the restriction in the Corporation Law requiring P200,000 paid-in capital before a bank may be started. Under the new law, associations may incorporate with a paid-in capital as low as P100 or as high as P10,000. The Government does not furnish any financial help except that the organizing staff is paid and maintained by it. To give security to small investors the bonded municipal treasurer acts as treasurer ex-officio of the association and Government auditors audit its books. The purpose of the Rural Credit Law is to encourage small farmers to coöperate and furnish their own capital. Only one association may be incorporated in a municipality to avoid rivalry and factions. On October 19, 1916, the first rural credit association was incorporated, and after practically six years, there are now 544 incorporated associations with a paid-in capital of P807,178. NUMBER OF RURAL CREDIT ASSOCIATIONS AND AVERAGE NUMBER OF STOCKHOLDERS, AMOUNT OF CAPITAL STOCK PAID UP, AND LOANS MADE IN 1923, BY PROVINCES AND SUBPROVINCES Province and Number of Number of Capital Loans subprovince associations stockholders paid up Pesos Pesos