, 1874-01-25
The AuaEgamated Carpenters and
Joi1ers' Society.
Edu:ation Of the 11asSes---F0reign
Railing Against American
Institutions.
Evils Of the Present State OF Society,"
Rich Drones Worse than
Poor Ones.

Chicago vs.. Yorks11ire---Country
VS.. City.
The Peoples :zantxs OF Ger1nany-"Co-
operative stores that Deal III
Money.
Scbu1tze-p pelitzsch, after seventeen years Of
toll, has firmly established in Germany the sys- ]
TEN Of Peoples Banks,-one Of the greatest Of
blessings to workingmen. What. is this
system? !? What we're the objections Schultze-
Delitzsch eucour: r:ered? And how did he over
come them In studying the wants OF the
workingman, this
FATHER OF GERMAS COOPERATION
reckoned among the greatest OF them his IN
ability to obtain loans on the same terms that
EMPLOYERS did. He saw that this was Inevitable
as things then we're; for man who had no
guarantee to offer, except his Willingness anu
ability to work, possessed in reality no security
at all stYes," said Schultze-Delitzsch, "5ou
nre in the right as regards one workman. NO
matter how probable that an individual is honest
and can earn enough to pay you, he may die, 20
robbed, OF be prevented in some other way from
mesting his obligations; but, continued ne,
wisely, ~ s. body OF individuals is to be trusted.
Skill and willingness to work, and the comblna-
ton Of this skill, this aboz and their earnings,
does count for csptal,--is perfectly good,
negotiable commodity"
Hers, 1len, is the idea, the objection, and the
answer in theory. There is IN answer also In
practice, for the objections have bean met and
overcome by the Loan Associations on Peo-
pie's Banks. These banks are
FORMED DY THE woRKISGMES.
Each member subscribes for one share, which is
all he is entitled to hold. The price of each
share is about $3.50. It is paid on entering. or
In monthly inBtallments after entrance. These
instal1ments are, as rule, as small as l2114
cents. The entrance fee. which is from 70 cents
to s1.50, and which goes toward the 1eserve-
fund is also payable in monthly instal1ments.
THIS profit OF the bank are divided among tho
members in proportion to the amount each has
paid; and, until a. share is fully paid for, the
amount Of the dividend upon it is credited
in part payment. The number OF nem-
bere is unlimited, and entrance is al
lowed to any one who will subscribe
to the rules OF the society. Withdrawal ut
any time is allowable, provided due notice, ac-
cordng to the statutes, be given. ANY With
drawing member is liable for the debts formed
b. the soc;aty during his membership, until DIS
charsed from that liability in such Way as the
nssociat;on approves. Tho question worry natu-
rally arises,
How Ii TIE MONET RAISED?
The collection Of a few hundred shares of
$50 gives Ecaut capital- The money bor-
Kowod by the society is raised on the joint credit
of the members, IN tir{ue Of the uniina1ted lid-
bi[Iy of al of them. Each member is person
allr liable to the full extent OF his property.
This is the foandation-stone OF the system, aud
is the guarantee upon which al loans are OBJ
famed. Even this may bo considered at first
be obliged for time to pay higher
rates than the wholesale market-price.
But it coon becomes established as firmly as
other financial institutions, and can buy in the
market or equal terms with them.
WHAT ARE THB PROFITS MADE BY ME.aBEns?
The bank buys money at Wholesale. and sells
It at retail to it's customers. Few people realize
what that menus. Tho difference between the
wholesale and retail prlces ls greater thai ID
imagined The difference in Germany is gener-
n1!v 1 per cent. For instance, bank buys at
Ter cent and sells at s per cent. Then there
is dividend OF per cent to be divided among
its members. including. OF course, those
WIG borrow. This THIS seems mennn,aan 1a5ge nge
60 and 80 per cent on money TINT is borrowed
IN the first place at from to 10. The members
Of thsse associations, then can get loans at the
market-ratos, and they then receive dividends,
WHICH arc In TeA11ly IeDaIE6 0u GfEu kAOSe 1hL1o
so wurEingman can often borrow on even bet
ter terms than his employer. Money is mer->
chsnuise. Tho Peoples Banks OF Germany
are
COOPERATIVE STORES DEALING n MONEY =.
instead OF in tens and 6ugars and dealing out
that money equally "
They gran. loans only to their cEn 1nembers-
This is ono OF the maln pEecepts OF Schultze-
DelitzscE. Another is the necessity Of never
lending money for longer terms than that for
which it has boen borrowed.
TIE nBroRY OF The PEOPLES BANKS
is proud record. At tho close Of the Franco
German war, their number was 1,87l,-an in
crease OF 12i gained during the struggle, and not
constructed entirely on the plan here described.
The others differed but slightly from it. In 1853
there we're 80 societies. In 1869 there we're 735.
Instead Of IL, ,760 members, the number has in
creased during the ten years to 304, ,772. In 1859
the total ct shares and reservc-funds amount
ed to $2O3. 900. In 1869 it stood at
s94ooO OD0 The borrowed capital in 1859 was
about S75D, 900. In 1869, it WAS S32 500, ,o00 OF
this sum nearly one-half consisted OF savings
deposits. The outbreak Of the Franco-German
war exposed the banks to double peril Very
many OF their members were in tie army, and SO
their power of borrowing, which depended upon
the producing capacity OF all their shareholders,
yss DIMINISHED. At the same time, there WAS
drain On thoir savings-deposite, for the support
Of the families OF these men. Nevertheless.
willie the great banks broke right and loft. not
one OF the peoplea Banks closed its doors for .
day. The general principles to be observed
during the crisis we're summed up in
FEW SHORT RULES
at the Central Bureau Of the Cooperative Bank
at Potsdan, 81 the beginning Of the war, and
were published in the cooperative newspaper,
which is under tie immediate control Of Deltzsch.
The rules we're as follows:
.First-Pay higher interest on yo1r borrowed
capite1 to prevent or diminish its ch1ux.
S1coni-Raise proportiouatclT the interest
charged to your cc5tomors- ...-
TIiy4lLIitnit the amount granted in any one
loan, ard shorten the term for which you grant
the loans.
Fou,h--Demand higher security.
FY5th-In granting proloneations, insist on
propottionate rates being successfully paid of.
1t WAS to the carrying out Of these rules that
the triumph Of the Peoples Banks during the
War is to be ascribed.'
TIE FEDERATION OF TIE DAEKs
ia simple and admirable. Each association
forms part Of n Provincial Union, and the Un-
ious are leaguei together. There are Provincial
assemblies and Central Congress. The Latter
moets once q year. It's functions are only I'd
yisory. II is composed Of delegates from each
society, and is presided over by. schultze-De-
litzsc. It sits in several Of the larger cities IN
A.. icY1a M fnnRtAnf