, 1874-06-14

One Of the great advantages which capital has
over labor is its ability to borrow. The capital
LIST, upon thepledgo Of part Of what be possesses,
or upon the strength Of his reputation as =
property owner, can get money at the market
rates. The labo-er, who has no land, no stocks,
no bonds to pledge, and no credit to base his
| request upon, falls into the clutches Of pawn
! brokers aud disreputable money-londers when
be tries to borrow, and pays from two to five
times much for his loan as the capitalist does
for his. Moreover he can hope for nothing
better until he does something for himself.
Neither God nor man is about to help him
despite himself.
There are now in existence, in Germany
about ], 600 banks, which are owned By working
men, and which loan to workingmen. Their
organization Is simple. Their success Is great.
At the outbreak Of the Franco German war,
When some Of the largest banks in Germany
went down, not one OF those owned by working
had to shut its doors. There ara such
banks now in France, Italy, Switzerland, Aus
tria, and Rusaia- They arc all organized on
plan suggested by the great German, Schnltze-
Deltsch. This plan Was explained, Inst Janu- /!
ary, in detail, in TIE TRIBUNE. We shall !
sketch only its most salient points now. It's
basis is the idea that 100 men. who have an in
di7idua credit Of 800, should have one Of
$4,000 together. It's principal features are
these:
Maximum Of publicity;
Minimum of risk;
Unlimited liability Of stockholders.
The last is the most important The shares
are small and are paid for On installments, but
the holder Of one OF them ia liable, to the full
extent Of his property, for the debts contracted
BY the bank. This provision, which makes It
possible for the bank to borrow, also insures the
greatest caution in the admission Of stockhold-
ers [for only Stockholders can get loans), and
in the management Of business. The books are
always open to inspection and are audited very
frequently. When such 8 bank is organized, it
loans the money received for its shares to
hose Of it's members who wish to borrow,
.nd charges them tho usual rate Of in
erest, It receives deposits. moreover, from
.ny and every body. and loans these. It bo1rows
money In as large sums as it can and lends it in
mall ones. It thus pnys tho Wholesale price
nd gets the retail. The difference between !
hem is its profit. It is. in fact, cooperative q
tore that buys and sells money instead Of gro 9
cries, and sells only to it's own shareholders.
The advantages of such q bank are many. It t
thrift fur more than Al ordinary t
for cooperative bank gives its N
hareholders not only interest On their deposited
|oney, but the profits Of it in the y
1ape Of dividends well. It teaches a
orkingmon the real nature Of capital This q
oparently intangible advantage is really q Ii
ost substantial one. II laoorer is to rise in Il
10 world, 1t is almost sine quo non that be O.
,ould sayo money. Before he can do this ho p
ust know how to uso money. Cooperative | al
inks are powerful euemios Of communism. ct
larcholde1s in them are not apt to declaiu q,
,ont the "ty1anny OF capital" or to prate that ii
is robbery" Tho logic Of bank OF
'oks Ia dead against these jinging lies. Such bt
INKS, again, keep workingmeu cut Of tho N
1tches Of pawn-b1okezs, and make it possible le
< them to live through hard times without m
ding themselves with debts at rate of inter- lii
that makes payment OF the principal impos- NJ
lie, and 30 condemns them to lifelong co
usgle With hopeless poverty. Re
re hare said that these banks are now -four it
ing In nearly every country OF Continental an
rope. In England, their place il supplied, in th.
ut pzt, by tbs BANKING dspaxtmsnta attached th,