The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-07-18
VILLAGE BANKS IN HOLLAND.
The nalffeisea System Of Agricultural
Credit Institufions.
rron pang consular aad rrlas Rspers.

| was saw NuuN tue hHTlthWNlInl poth-
lsrion suffered severely from usurera, and
he subsequently, devoted his life TO solving
the problem which should relieve the farmers
from this infection Ills frat step In this
direction was the formation OF q cooperative
society for the purchase Of cattle. but a. the
poorer among those to he benefited by this
society were absolutely without means he
established n few wears later an or ganization
I TO furnish means to the ANAL farmer. THIS
Was soon transformed into . savings
and loan hank. and thus the nrst farmers
cooperative banking movement was started.
/ according to the principles which Father
Raihei-en considered essential
Though this parent Institution was only
launched In iSSA there are now thoueAnds
OF such village banks In operation In Ger
many. aud although they only made their
appearance in the Netherlands In lsee there
are now over OaS Of these Institutions in the
country. Wherever these banks exist they
have given good results. aud IL IL q source
OF regret among Dutch farmers that their
esta bll-hment had not been effected earlier.
The principles Of the Rainelsen system
give the farmers loan banks a peculiarly
solid foundation 10 which that OF no other
money institution or savings bank can veil
! be compared The sphere OF operation OF
each bank IL small. as every institution
- working only for one particular com
munty The members OF the bank know
each other personally. and the managers
keep well informed a. TO the reliability ana
integrity Of all those who apply for adj
vance- Again. they are mana ged free OF
I charge. a. only the cashier eet- salary
| The managers and directors are selected
from well known villagers. who are sener-
| allv found willing To place their reputation
and business knowledge at the disposal Of
! their fellow citizens
/ When an application IL made for n loan
the only point considered Il whether or not
the applicant will he benefited, The bank
can max. by taking advantage OF the appli-
/ cant difficulties A. DEFINITE rate OF
interest. ~ per cent - ShaIgea on ~ iosha:
the dangers OF losses from hazardous or
speculative Investments by the banks are
absolutely avoided. =,
! Another essential feature Il the so-Called
: undiVidable fund THIS fund represents
tbe total accumulation Of all profits, and u
! y only When this sum reaches TOO nigh
iigure that "a general meeting OF menber~
decides whether aud how the excessive
income shall h. spent. either IN raising the
peTCenta ge paid to depo=itor- OF IN Acuuir-
ing objects aud works essential TO the ma
trTial Interest and welfare Of The .mstnberS
The whole Arrangement % me hainels.n
hanks Indicates an go Tne-t enort 10 promote
the interests OF the members. all seH.ln-
ter--t and prort seeking being excluded
The Raii-is-u system - often mentioned
as one OF the effective means which may be
! employed against the influences OF trusts
and -vndicste- ana against cold. unteehnt
/ an ,du,attonAf Impulse aud 10 enn0blins
Influence ON social life sud mutual inter
,Our-s cannot b. oVrrs.~ttmat led.
AZ. m-mb.r- bind themselves TO refund
al loans which the tank has tssen up THAI
I j.. deposits and advance from The central
banki and should the assets OF the bank
prove Insufficient for that purpose they are
[ Obliged to ina - good the shortage IN equal
parts should on- neinbsi MOI De IA po-
sIftou To lilNl his pro "a obligation his snare
- - he paid by the solvent roma ming mem
b~T- The creditors of the sAnk anu espe-
] ,laily those no nave detostted their -
inv- arr. thus given an excellent guaranty
] A. the same time the rrsponsiblhtN OF Tue
tt,Iiv ll,I. =, INN, ths'r LIABILITY at the gen
| ertl meeting ot members Nh'h hhes ani
\ names ia" INA Nlmum mount o Oe sc,spt.u
/ from any one d"pO-ttpT or ot We totAl ue,
! pastors and 90 be dr1 Wn from the central
ipo-s t---on- who mi shi hesitate to give
. their support 10 th" undertaking OWING "
/ ~. unlimited liability OF nemher- shoulu
! bear IN mind that the only manner IN Shlch
the money can he Lost - through he ialhrs
OF borrowers to return loans aud that each
| and every one 81 these loans - fullN guar.
! 4 uteed before ~ u made by he hank Ot
he Sno bank- connected with the central
! IA in~i-en bank at ttreCht mn, one has thus
I fer suffered sinRl" loss AmotiHAtlon
I nf 'h, advances has lSeen regular and has
J AIKEN place without dim ultie- OF anv KIND
/ 10 adVau,. IL granted unless covered oy
? ler-unal ~ collateral security, and the oreT-
admits 81 control 81 the manner IN which
. The advan'e j. applied
]
with legal residence VA the community or
/ it= immediate noighborho"d. are admltted
| TO membership Ia a Cooperative farmers
! loan hank This partnership - dissolved
I nv death notice OF Withdrawal. rejection.
htnkrurt,v and change Of residence writ.
/ ton not. Of Mt hdraWal eau be gwen az
any time. AMI takes eret from be beginning
/ ~ tho neNf book year, provided " has Teen
7 > ven not less than four weeks previous 10
Ihaf tim. Members OF the hank are en-
I titled 20 obtain adNan,es ana 10 make ne
b posts rndrr prs-crihed conditions
! . - hnU nj
'hr managers. directors and the general
: meeting The managers ana dire"tors
/ san.r'I meeting 10y and from he members
. hy majority vote One member anu one
director rc'irr5 annually rom ~. o1aI Ar,
, a. least once a month and the directors At
/ l.as' four times a wear he cashier =
ear aud i charged with The financial
| administration Of the b4nk he must also
/ u.' member and give asa,it ga, 20, Dona
| r,..ting The managers and directors re-
,.tye no remuneration. The general nesting
| J. held once a year and must lie a''ehdeu oy All
| The pntch Government evidently de-ires
/ to furthsr the establishment oi lsIners
/ loan bank-. a. " agrees 70 grant shEls
/ homecoming subsidy not exceeding go.
| IA OF der 20 meet the first expense OF orsani-
lie Cnopsra'ive central Raineisen Bank
| a. tr",ht works Ike q clearing house. ana
- inC',SSn-, a.G ,m sSs d.po.ted Ss1s
u
| sIiI invested IN the safest possible mannar
| Advances are made to the affiliated village
b.uk- which are thus ena BLEED to make loans
or To- nav back deposits Of members, even "
thor ready cash should prevent them from
dong 20 a. any time
The central bank also promotes the Raft
fei-an system 10y giving full information
and .Nplistt directions hen the establish
nsnt oi a new village bank IA contemplated.
Ito officials ar. often called on 90 lecture on
'h., subject t,s object u 10 have q bank
in every village in the Netherlands, even the
sms Hest and most distant hamlet
III. Inspection and control Of branches
+ also sfscts-l nv the central bank. At
ica-, once Year the administration Of every
affiliated bank u subjected to rigid exam
nation and a duplicate report OF the find
inss OF the eva miners n made. one copy
going 20 the central bank at Utrecht and the
other 70 the local bank.
Each village bank must become n stock
holder in the central bank on opening ne
gottation : with the parent institution For
every o. 600 or traction thereof borrowed
from the central bank one share OF the latter
stock must he taken. These shares are OF
$3.50 par but are not paid up in fun, 10 per
cent Ina cash l. paid on 'he FIRST share taken I
and per cent each Subsequent share. |
After The village bank has affiliated nself |
v III ~. central bank and sub~cTilped for |
- share or shares careful inve-i,gaiion !
j. made n "a ~ reliability aud membership !
- I