The Hawaiian gazette., 1901-10-08
Thes. banks. having -orxsniscd the

their own reliability. obtain large loans
on long periods from the capitalists OF
the great financial centers. and this IL
loaned to the humble peasant. The
bonds OF these banks are regarded In
Italy as more secure than those OF the
Government.
The first organizer OF these Popular
or Cooperative Banks was Schulze-
Delitzsch In Germany. He was
phllanthropist. His system after II was
well established, extended through
Germany Bismarck. fearing that this
organization OF credit would interfere
with the autocraty 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 LuzZatu took the matter up in
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 transac-
tions reached 100000, 600. 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
500 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 hanks amounted
to over 100000 900. In many of them,
the surplus earnings are not divided
but are used as additional capital and
for charitable purposes. They are not
intended to be money making institu-
lions. 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
priests to organize them in their par
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 81 500, 900 to it's members, and
did not lose cent. In addition to these
banks, are the "Casse Rural!,' which
provide for another class of the poor.
DR. Walenborg 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
by the Popular Banks and the Case
Rural societies. and they are all man
aged by the people themselves. and at
will be slowly regenerated through
these institutions.
In Belgium there are tyenty-three of
these banks. and their loans reach $780,
100000 a year That Of Vervlers has
1885 members. made up of little trad
ers, who wish small loans. The Mutual
Bank of Client loans over $1,000 600 an
nually and loses nothing.
This movement has extended to
Switzerland. The rich and the poor
are treated alike. a matchmaker bor-
rows in order to complete a few
watches and the shepherd gets loan
for the purchase of goats. The
'Schweizerische Volksbank" In 1895
loaned over $50 900, 900.
In France cooperative banking is in
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 "the greatest banker in
the world is he who dlsposes of the
mite of the poor"
Henry w. Wolff Is the author of q
large and valuable book on the subject
Of Popular Banks. In II 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 sI50o00,O00 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 mobiliZa-
ton of productive forces, fuller salts
factien to the toiler without the add!-
tionai taxation of any one. dminution
OF want, a diffusion of prosperity, to n
very great extent the Disappearance of
economic strife. education. elevation,
the making of the entire community