Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1874-03-04
THE PEOPLES BANKS OF GERMANY.
A Union Savings Bank System.

| A writer in the Boston Journal de-
scr1bes the popular credit banks Of
Germany, of which, at the last advices,
there were nearly a thousand In exist
ence:
lin a business city like ours, who
can look upon the Catholic churches
now in process of erection among us
without being struck by the financial
skill they imply? Those immense and
noble structures, calculated to last for
ages, are built in reality by one of the
least wealthy classes of our community
by servant girls and laborers-who
supply their regular contributions,
insignificant separate, and not felt by
their givers, but mighty in the aggre-
gate, as we shall see. Why cannot the
laboring children of this generation be
equally wise in matters of temporal
welfare-that is to say, why can they
not use their enormous aggregate cap
ital for their benefit, instead of being
dependent upon the crumbs doled out,
often at eXorbitant rates of interest,
by wealthy capitalists, or going
through the world with the impression
that their only capital is their muscles,
which may fail them at any time, and
upon which they can never realize? It
was doubtless bordering upon some
such questions as these that German
by the name of Schultze Delitzsch hit
upon a practical idea. He saw that
the laborer, like the tabled rods, was
financially Weak as an individual, but
powerful enough for all his purposes
as member of community. That
ability to labor, which is SO poor a Sc
curity in any one mans case, is, when
a thousand of such men are associated
on sound basis, to use a translation
of the Germans language, Ga perfectly
good negotiable commodity"
| Out of this reasoning came the peo-
pies banks of Germany. They are
formed by workingmen alone. Each
member subscribes for one share,
which is all he is entitled to hold.
The price of each share is about $3.50.
1t is paid on entering, or in monthly
installments after entraIce-these in
stallments being as small in some cases
as II! cents. There is an entrance fee
ranging from rs cents to $3.50, paid in
the same way. The profits of the bank
are divided among the members In
proportion to the amount each has
paid and, until share is fully paid
for, the amount of the dividend upon
it is credited in part payment. Suita-
bic regulations are made for withdra W.
al These contributions, of course, do
not supply all the capital required.
The society is for the purpose of bor-
rowing money, which is raised
on the joint credit of the mem
bers, in virtue of the unlimit-
ed iablty of all of them. Each
member is personally liable to the full
extent of his property. This is the
foundation stone of the system. The
profits to the members accrue from the
simple fact that the bank buys money
at wholesale and sells it at retail to it's
customers. The difference of price in
Germany is generally about per cent.
The workingman of Germany, there
fore. can hire money to proper extent
as readily and cheaply as his employer;
while, as a member of one of csc
banking institutions, he has sh. of
the profits accruing from the total loans,
which, it will be seen, is practically a
rebate on the rates of interest he is
himself paying. In other words, these
banks are cooperative stores, dealing
in money instead of groceries and other
like commodities.
They have now stood the ordeal of
the trial, and must be pronounced
magnificent success. Even the Franco
German war added to their number
and to their popularity, for they held
their own-owing to the prudent coun.
sells Of their originator-while other
banks were breaking on every side. In
1859 they numbered 80; in 1869 there
were 735. During this period their
membership arose from Is, 769 to 3O4,-
772; and the borrowed capital from
$780, 900 to $32, 100000. This alone
shows their credit and good standing
They are all parts of one system, each
association forming part Of prov1n-
cial union, and the unions being
leagued together. The reports of each,
showing it's exact financial position,
are sent to central bureau, and are
condensed in an annual publication.
These facts are sufficient to show the
principle of the peoples banks of Ger
many. It will be seen that it consists
not only in consolidating and utilizing
Gu0 u0duS VI IdUOItIS, UuG LII udh1uS
them lever for securing their share Of
the capital of the country. It makes
the workingmen as independent, ac-
cording to the means of their class
| (not themselves individually, as any
other class of their countrymen. Why
could not the plan be adopted with
equal, or even greater advantages, i'll
the United States Different regula-
lions would undoubtedly be required,
and extreme vigilance in guarding
against abuses, particularly if the plan
became popular; but the principle it.
self seems of universal application,
while the resources of capital awaiting
it's command are larger here than in
any other country"
HI. M. PARKHHURsT makes the two
following astronomical suggestions:
"By the method of extinguished
apertures, accuracy of results can only
be obtained with a perfectly dark field
It is evident that star is more easily
seen in black field than in one which
is Illuminated; and that with an equal
magnifying power the illumination will