The Superior times. [volume] (Superior, Wis.) 1870-1912, 1874-03-07
THE PEOPLES BANKS OF GERMANY
A Union Savings Bank system

bSiipcS bnc populdI CE0ult pdHkS u
Germany, of which, at the last advices
there were nearly thousand IN exist
ence:
In a business city like ours, who
can look upon the Catholic churche!
now IN process of erection among III
without being struck by the financia
skill they imply Those immense ant
noble structures, calculated to last fol-
ages, are built IN reality by one of the
least wealthy classes of our community
by servant girls and laborers-whc
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
ltal for their benefit, instead of being
| dependent upon the crumbs doled out,
often at eXorbltant 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? 1t
was doubtless bordering upon some
such questions as these that German
by the name of Schultze Delitzsch hit
upon 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 a community That
ability to labor, which is so poor Sc
cuTlty n any one mans Ease, is, when
a Thousand of such men are associated
on sound basis, to use a translation
of the Germans language, "a perfectly
good negotiable commodity"
Out of this reasoning came the peo-
pies banks of Germany. They are
formed by workingmen alone. Each
member subscribes fer one share,
which is all he is entitled to hold.
The price of each share is about 81. so.
1t IS paid on entering, or in monthly
lnstallments after entragce-these in
stallments being as small in some cases
as IL cents. There is an entrance fee
ranging from IS cents to 81. 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 ali the capital required.
The society is for the purpose of Dor
rowing money, which is raised
on the Joint credit of the mem
bers, il virtue of the uulimit-
ed liabIty 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 member of one of these
banking institutions, he has a share of
the profits accruipg from the total loans,
which, 1t will be seen, Is practically
rebate on the rates of interest he is
himself paying. In other words, these
banks are cooperative stores, dealing
III money instead of groceries and other
like commodities.
They have now stood the ordeal of
the trial, and must be pronounced a
magnificent success. Even the Franco.
German war added to their number
and to their popularity, for they held
their own-owirg to the prudent cOum.
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 then
membership arose from 18,769 to 304,-
772 and the borrowed capital from
$3.50, 900 to S32, 800, 900. This alone
shows their credit and good standing.
They are all parts of one system, each
association forming part of provln-
cial union, and the unions being
leagued together. The reports of each,
showing its exact financial position,
are sent to a central bureau, and are
condensed III an annual publication.
These facts are sufficient to show the
principle of the peoples banks of Ger
many. 1t will be seen that il consists
not only in consolidating and utilizing
the means of labOrers, but in making
them a lever for securing their share of
the capital of the country. 1t makes
the workingmen as Independent, ac-
cording to the means of their class
mot themselves individually, as any
other class of their countrymen. Why
could not the plan be adopted with
equal, or even greater advantages, III
the United States Different regula-
tons 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
its command are larger here than in
any other country"