New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-09-06
COOPERATION IN GERMANY


many IS such as to startle authors on political
economy. and force them to acknowledge that
old systems are indeed being rapidly super
seeded by new ones Even in England, where
the new plan of self-help has become so IA
nous, it is confined to certain localities; but
in Germany it seems to permeate the whole
land, over a thousand different cities and
towns having their cooperative banks, stores,
and supply societies. There are fully fifteen
hundred successful cooperative societies in op-
Grafton, including two hundred and fifty stores
and manufactures, and over eleven bundled
banks. These have q total membership OF
over 100000 persons, who represent about
loo 700 souls. TO carry on all these social es-
Establishments there is a capital OF Sl2OOO.OD In
constant, active circulation, and further sum
of S32, 700 900 In deposits and loans. The
banks of credit have advanced during the last
three years an average Of Sl5o,OOO,OOO per an
NUN. This statement includes only those
societies registered in the statistical report,
published annually at LEIPZIG by Schultze-
Deltzsch. According TO the Annudire de FAs-
sociation, published at Paris, the total number
of continental cooperative wOrkingmen's socie-
ties is 10000, the number of members 100000,
and the total annual business 5O0000,00O francs
yearly. This computation includes all socie-
ties. burial, mutual aid, bank, supply,
and manufacturing associations.
In character and manipulation the German
Torsepuss Vcreine or advance societies, are
identical with our ordinary banks, except in
the number and class of their members, and the
object of their loans. The system is the inven-
ton of the celebrated Schultze- Deitzsch and
Al. nIno,
each with his own aspirations, settle them
selves down TO work. Among them are dozen
machinists, and rs many tailors shoemakers,
pipe-settcrs, weavers, farmers, &c. These men
are industrious and full of courage, and having
confidence in each other, form themselves into
a company and select their ablest members to
take charge of their spare earnings, which each
individual pays weekly into n common fund.
One member, perhaps, is farmer, who, not
satisfied with o few cents n week more than
his board, and seeing no other means of
success, deposits them in this social treasury
The moment they amount to Fifty cents he has
right to pride himself upon being q
stakeholder in legally organized bank.
Another is a shoemaker; q third taller, and
so on. To establish themselves in q business
of their own, however small, is the aspiration
Of each. If the shoemaker can get
little corner where he may sell
shoes as well as make them, he adds
to his wages the profits of the shoe trade
The farmer perhaps covets a little piece of
land where he may become his own producer.
The machnsts, with each couple of hundred
dollars, car start small workshop, so they
contribute their half dollar week regularly
A. A.
to say thousand dollars. Upon the strength
of this they borrow another thousand at six
per cent. If the farmer wants $500 to pay the
first instament on his land, the bank lends it
to him at seven per cent, securing itself by a
lien on the property, which the board of man
agement sees is legally purchased. All the
other members obtain similar loans in
their turn, the bank advancing the money
as fast as it is received from deposits
and interest. New members are from
time to time admitted, and the bank
becomes q permanent institution. Members
who do not wish for loans or appropriations
receive fair percentage upon their deposit
The real effect of this system is to destroy the
profits of middlemen by making the producer
his own salesman, since his productions pass
directly to the consumer Large numbers of
these banks have grown to be very respectable
institutions, with millions Of dollars at their
command. There are also many very flourish
ing co0perativr provision stores, and several
societies which furnish at wholesale the rough
material to supply these thrifty manufac-
tories.
All these are content with smaller returns
than our mechanics and laborers would be
willing to accept; but who can fail to see
that the principle Is as valuable in America as
in Germany Who, indeed, can fail to see
that the principle is to be hailed as the best
solution yet offered of the growing complca-
tons that are bred 10y the conflict between
Capital and Labor? Those complications are
tho question Of tho Future Tho who wisely