The Grange advance., 1874-07-01

Z
GRANGE Couxc1Ls are at this moment
interested aevisine q safe scheme for the
purchase and distribution of farm supplies
At the minimum rates Of cost. Before any
scheme shall be. settled upon and recon-
mended for adoption, the whole subject
should be canvassed thoroughly, aided by
whatever experience the times will fur
nish. Underlying such investigation the
Investigation will meet at every turn the
question Of capital, or what is the same
thing, of undoubted credit.
An association without ready capital or
credit is no more respected in the open
markets of the world than an impecunious
individual. To purchase to the best ad-
vantage some scheme must be devised by
each County Council, first to establish the
credit of the purchasing agency on solid
basis under such supervision as will pre-
serve its character from year to year unsul-
led. To do this it may be indispensable to
have peoples bank modelled somewhat
after the plan now in operation in some
parts of Germany, where the working
GLASSES are striving to climb out Of the mire
to which the iron tramp Of capital had trod-
den them" Below we give few extracts
from dissertation on the working classes
"of Europe, from which it may be seen that
when all contributed out of their earnings
to centralize capital in local bank, they
could through such an agency accumulate
sufficient capital to furnish themselves with
supplies at the lowest rates, and which
they could not do singly. The profits
which formerly went into the hands OF the
speculator now remaining with the pur-
0nasers.
Out Of this idea arose the Peoples Banks !;
at first in the form of associations Of per-
sons carrying on particular trades, to buy
sn their joint account the materials which
they respectively wanted but soon taking
the shape OF institutions by which, to bor-
row Mr.. Schultze Delitzch's words Ibid,
page I'LL
'Capital could be created tor the classes
without capital, and the merely passive
saving and depositing in public savings
banks, give place to the active participa-
tion in the bank business established to
aupply the credit wants Of its membe1s !;
w:'o by fulfilling, under difficulties and de-
privations, the engagements they had un-
dertaken towards the societies, could prove
tt,eir own moral worth while by the ac-
oumulation of small! savings thev succeed
ed in adding power Of credit to WORTH
ness"
The success Of the banks appears to
have been materially aided by the conf
dence created from the unlimited response
b;!ity Of their shareholders; a principle to
which Mr.. Schultze Delitzsch, attaches an
Importance greater, in our Judgment, than
really belongs to it, but which no doubt
filed useful Office IN the Introduction of
these institutions into Germany. The true
secret OF their prosperity, is, we believe, to
be found in their local character.
The "People's Banks" were not gigantic
speculations, carried on from distant
centre, which sought to draw the business
o: whole provinces into the circle of its
operations, but associations dealing with
those Of whose character and position they
were generally we'll aware, formed of per-
sous who possessed local knowledge of
each others means; and limited in their
operations to advances needed for carrying
On the ordinary business Of the district
where they arose. Hence they made few
losses, and, from this circumstance, COM
b:ned with the prudence shown in their
conduct, very much we believe, through
the watchful care of Mr.. Schultze Delitzsch,
he having induced the members
ITO maintain the relation Of the de-
pcs;ted reserves and accumulated business
dividends to the capital borrowed, for the
purpose of Strengthening their business
funds, at an average even beyond that pre-
s.ribed by the experience Of solid banks of
deposit, they have gained a strong hold on
the public confidence ; so that the offer of
capital has exceeded their actual wants {;
ard in some cases disposed them to embark
IN business operations which more properly
belonged to the practice Of larger banking
concerns tendency which Mr.. Schultze
Delitzsch states that he never failed to op-
pose"
Hitherto. however, no harm appears to
have come to the associations from this
tendency. The facts and figures following
vii! give an idea of the magnitude which
the system, introduced in 1853, has alta in
ed, and its influence upon the growth of
other forms of cooperative associations
now springing up around it. The war of
1870 taxed their resources severely. lCo-
'op' Congress report for 1872, page l01.