The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-10-08

or Cooperative Banks was Schulze-
! Delltzsch in Germany. He was a
( phiIapthropist. His system after il was
/ well established, extended through
! Germany. Bismarck, fearing that this
! organization of credit would interfere
with the autocracy of the State oppos-
! ed them; he even offered Government
aid so as to bring them within his con-
troll. This was refused on the ground
that the central idea of the business
was that the people must help them
selves, and do their own thinking. BY
! the year 1892, over four thousand of
these banks were in existence. They
are of vast use in aiding the small
traders and farmers. At about the same
time, Raiffeisen in western Germany
started another system of Popular
Banks, with the same motive. These
have proved to be of inestimable value
in organizing the credit" of the poor.
Then LuZzattf took the matter UP III
Italy. He too, Capitalized" honesty
The Bank Of Milan, started on a capital
of only several hundred dollars, was
so successful that in 1892 it's transact
lions reached S100,000,000. From Milan,
these Popular Banks have gradually
extended over Italy and now more than
two thousand of them exist. They
bring the poor men together, collect
their earnings, lend them money, and
make each one brick in a great finan-
cial structure of credit, drive off the
usurers, and can at any time borrow
enormous sums from the capitalists,
which moneys are loaned out in small
amounts to the members of the Asso-
Citations. 1t is estimated that out of
$50 OF these banks, only eighteen per
cent of the members are rich and
eighty-two per cent are poor" In 1892
the loans of the Rural Banks amounted
to over 5000, 900, 900. In many of them,
the surplus earnings are net divided
but are used as. additional capital and
for charitable purposes. They are not
intended to be money making institu-
tons, but though they take only small
rates of interest, usually six per cent
they do accumulate considerable sur
plus.
These banks have become such moral
forces, the Church of Rome has taken
up the matter, and encourages the
pa S5lS W Ot SduIIc LIACtil III tIiClL pal
ishes on the ground that if the people
are aided to better their material con-
ditions this will make them friendly to
the Church The Small Credit Bank
of Bargamasco' advanced in three
years over 81, $780, 900 to its members, and
did not lose a cent. In addition to these
banks, are the "Casse Rurali," which
provide for another class of the poor.
DR.. Wallenborg started them in 1882.
Members of the Associations must be
able to read and write their own names.
So the peasants learn to read and write
in order to become members. Every
loan must be promptly paid. A drunk
ard must reform in order to join and
borrow little money with which to
buy calf or some chickens. a con-
siderable part of Italy is now occupied
ny the Popular Banks and the Casse
Eurali societies, and they are all man
aged by the people themselves and at
will be slowly regenerated through
these institutions.
In Belgium there are twenty three of
these banks, and their loans reach $780,,
100000 year. That of Verviers has
1856 members, made up of little trad
ers, who wish small loans. The Mutual
Bank of Client loans over 81, 900 900 an
nually and loses nothing
This movement has extended to
Switzerland. The rich and the poor
are treated alike. A matchmaker Dor
rows in order to complete a few
watches and the shepherd gets a loan
for the purchase of goats. The
"Schw Volksbank" in 1895
loaned over s3O,OOO0OO.
In France cooperative banking is in
a backward state. Napoleon III tried
to create them with State money, but
the people were afraid of him. The
French lack confidence in themselves.
The peasants are ignorant and most
conservative. Several of the Popular
Banks have been established in Paris
and in the provinces. NJ. Jules Simon's
words are that 1.-The greatest banker in
the world is he who disposes of the
mite of the poor"
Henry w. Wolff is the author of
large and valuable book on the subject
Of Popular Banks. In 1t he has gath
cred an immense amount of data on the
matter. He declares that though the
organizing of the credit of the poor
men" has already effected the distribu-
ton of $75o, 900 yearly, the moral
effect of leading the people up to self
help is of much greater consequence
than the financial advantages. 1T
means" he says, "a wholesale mobiiiza-
ton CT productive forces, fuller salts
faction to the toiler without the addi-
tional taxation of any one, diminution
of want a diffusion OF prosperity, to a
very great extent the disappearance Of
economic strife, education, elevation,
the making of the entire community
richer, happier and better
This system of banking is not suitable
to the people of the United States at
present. The poorer classes. are not
permanent; the laborer Is too specula-
tive. The small trader is also ready
to take large chances and the tendency
would be with such &. system, to obtain
excessive loans and ruin the banks.
When our population becomes stable,
every member of the community who is
industrious and honest will be a mem