The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1909-12-30
AID SMALL FARMERS.
Much Good Done in Holland by
Raiffeisen Local Banks.
Give Help at Low Interest-Run on an
Economic Basis They Tide the
Peasant Proprietors Over
Hard Times,

The Hague-Quite q feature in the
country districts of Holland is the
local loan banks in aid of the peasant.
ry, which have SO materially contrib
uted to keep the people out of the
clutches of the Insurers. It is to a
German, she mayor of small village,
that this benefit is due.
The popularity called Water Raiffei-
sen, by the people, saw the straits
to which the small farmer is often re-
duced by poor seasons and other mis-
fortunes, and how it is often impossi-
BILE for him to obtain credit for con-
tinuing his work, except at rqinous
interest, He saw how the local trades
men, the bakers, butchers and grocers,
often took advantage Of the impossi-
bility of the farmer paying for his
everyday necessities, how they kept
on selling him goods on credit, Civ
Ing bad wares at high prices, as the
farmer could not possibly take his Gus
tom elsewhere, and gradually he got
more and more entangled and saw his
debts mount up until his small farm
and his stock could no longer be called
his own. Then, on an evil day, every
thing would be sold for a small sum
to some insistent creditor, and the
peasant proprietor would be forced
back into the ranks of the farm la
borer.
r. FATHER Raeffeisen, who loved his
Village children" thought deeply over
this problem, and conceived a scheme
by which they might be tided over
their difficulties.
He began in a small way by organic
ing a cooperative. society for buying
cattle if, for example, the members of
this society bought COW, they did not
have to pay the full price at once, but
in small instruments. He had so much
success with this that he soon was
able to organize a society on much
larger scale, which extended loans for
all agricultural purposes. The bene-
fetal effects were soon visible and so
many demands for loans came in that
he determined to make some slight
alteration in his original plan and to
found loan and savings banks.
Soon the fame of the institution
spread abroad and his example was
widely followed, not only in Germany
but in Holland as we'll, while his own
name will live on in these organiza-
Itions which he himself called into
being, for they are everywhere known
tRs "RRiffeisen banks" The differences
between them and ordinary banks
are many. While the idea of bank
generally is to make good profit,
TO give high salaries to its officers and
TO give high percentage to its share
holders, the Raiffeisen bank only tries
to give loans at as low a percentage
as possible to those in need of them
and the only salaried official of the
bank IS the cashier, while all the
others give their help for nothing.
The cashier, who has the most respon-
sible position, must be ready to confer
with the customers and to pay out and
receive money. Even he only gets
nominal salary; generally it is about
$50 forms $500 q year and in not
single case does it exceed 500 fiorins
$4,000 year The board OF directors
and committee OF control are all chos-
en- from among the citizens of the
highest standing in the village.
The initial cost of getting such
bank into working order is, very low.
First there is the deed to be drawn
UP by notary. which cost varies with
the locality from 40 to SO forms. Then
& good safe has to be bought, and this
costs about 100 forms. Other expenses
for books, paper, etc, do not greatly
increase the total, so that about 800
forms covers the whole affair. The
Dutch government gives a subsidy Of
IT'S forms year to every Raiffeisen
bank which has joined one of the cen
itwal cooperative Raiffeisen banks,
which are under government super
vision. There are three such central
banks in the Netherlands, and most
Of the small local banks are allied
with one or the other. The total capt.
tai invested in them is 16,000,000 for
ms ($60O0,000). In all the provinces
Of Holland such local Raiffeisen ban6s
have been established.