ABSTRACT
When some members overdraw and cannot repay immediately, the nominal surplus in the accounts can neither be converted into the accumulation of the collective economy nor be used to raise the members' level of consumption or to enlarge reproduction. Reserve grain belongs generally to the accumulation of means of consumption, and it has important functions in coping with serious natural calamities, in ensuring the consumption of the members, and in ensuring the smooth functioning of enlarged agricultural reproduction. Naturally, the amount of reserve grain must not be excessive; more should be retained in a bumper year, while less or even no reserve may be retained in a lean year. The specific method may be geared to the annual distribution; depreciation may be included in the production cost and may be covered in production costs. With the depreciation fund, it will be possible to ensure the timely replacement of fixed assets.
