Morning journal and courier., 1881-01-20

money of capitalists least of all from banks, unless he can pledge property easily realiza- ble, to more than the full amount if he does not do it, some friend is obliged to do it for him, or he must be deprived of the use of credit. If several artisans and laborers. each having need of credit, bind 1 themselves together in such way as to
 be unitedly responsible for the debt of all, a capitalist can well afford to lend them money. He can calculate upon the theory
 of probabilities, as the life insurance compa-
 nies do. If they are ordinarily clever men
 and provision is made for that in the credit
 unions, as we shall see hereafter-a certain
 per cent. are bound to succeed well enough
 to pay any reasonable loan made to all. Some
 might be inclined to smile at such an invest
 ment as dangerous, but the plan has worked
 brilliantly in Germany. It is doubtful if in
 America, any one kind of business can show
 so small a proportionate number of failures
 as the cooperative German unions Yet
 these unions have provided the poor and
 propertyless with credit. Their good name
 has grown, and more money has often
 been offered them, at low rates of in-
 terest-they pay on an average about four
 aud half per cent. per annum-than
 they could use. In places where they have
 been established, the unions have made all those worthy of credit able to obtain it (cred- staourd'g, credttJalag.) Instead of charging interest varying from fifty to seven hundred per cent. they have lent money to the stlit- tie" man at rates varying from six to ten per cent.-as for example in rare cases. to defray the expense of starting new bank, the rate has been eleven per cent. One chief element in the organization of credit-unions is, there fore the full liability of all members. The second is saving and formation of capital by the members. They must become share holders. No one can becomefa member of credit-union without purchasing shares in the business. A majorityyof those, however, for whom the associations are designed are unable to purchase their shares at once &C., cordingly, they are sold on part payments, each of which is so small that the ordinary laborer can spare the sum. Thus in a few years it happens that large part of the stock of the bank belongs to the members The calculation is that each member shall buy shares to the amount of fifty to one hun dred thalers. As Germany is poor country for the United States ought to be, at least, one hundred dollars. This may be consid- cred insignificant, but it is not to be forgot ten that main point to encourage in saving is to create taste for it. A large part of those who join the unions never before had SO much capital in their possession in fact, never before had any capital which was yield ing reVenue and accommodating.
 In cultivating habit of providing for the future, the importance of the first step can not be overestimated. The self-respect and importance of the laborers are raised as soon IS they become, even in a small way, capital sts. The feeling that they are members of ! large and powerful institution has been ;ound to help wonderfully. This may be ,alled sentiment, but as it is, like many other sentiments, a reality and power for good, that is no objection. Very many can oe led to save only by such powerful motives IS the associations offer, inasmuch as the hares are made @ source of gain, and credit an be obtained by the most only by becom- ng members. It is touching to read of the ace in saving which sometimes takes place between the members of the credit-unions fter they have become fairly started, partic- llarly after the first dividends have been de- Jared. The poor try to keep up with those 'etter circumstanced by the most rigorous economy, by cutting of every unnecessary xpense. The unions thus become savings 'anks and render the pawn shops unneces- ary for it's members.