The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-10-05
The Schulzc- Dclitzsch Co.operative
Banks I'm Germany.

Cooperative banking in Germany
and In other countries abroad is not
confined to the agricultur,sts. Side
by side with the Raiffeisen type of
agricultural banks there has grown
up another type. intended to meet the
needs of laborers and artisans. which
Is known under the name of its
founder. Franz Hermann Schulxe-
Delitzsch. This economic and social
leader was born in 1908 at Delitzsch.
In Prussian Saxony. and died at the
age OF rs in 1888. He began his pub
lie life as an assessor Of a court of
Justice In Berlin, and 1t was not until
after he had completed his fortieth
year that he entered upon what prov
ed to be his life work. As q member
OF the National Assembly Of IS4s he
was made chairman of a parliament
tary committee to inquire into the
condition Of laborers and artisans.
AS the result Of the inquiry he became
Impressed with the necessity OF CO.
operation to enable the smaller trades
men and artisans to improve their
economic coalition. In 1850 he es-
tablished the first cooperative bank
IT his native place. from which he de-
rived the later part OF the name by
which he Is now known. In the fol-
hA hi
appointments and devoted himself to
the furtherance Of his plan Of CO.
operative banking. A decade after
wards he became a legislator again.
and the subsequent legislation dealing
with cooperative banking was largely
his y ork. In view Of the importance
which his system of banks has attain
ed, and the fact that at present farm
ers constitute about one-fourth Of the
total membership Of those banks.
Ambassador Leishman has included
an account OF the working of the sys-
tenn in his Investigation of agricul-
tural credit institutions in Germany.
Owing TO the fact that the social
structure Of the town is more complex
than that of the farming community.
the structure OF the Schulze -Delitzsch
cooperative banks. whose functions
are mainly connected with the towns,
raj banks OF the Raiffeisen type. OF
which some account has already been
given The membership Of the urban
banks includes men from many walks
Of life and of varying degrees Of fin
ancial standing. These banks are
supplied with larger foundation cap
ital than the rural banks. The mem
bers Of the former are required to
subscribe comparatively large
amount for capital stock. and they
operate upon this basis more after
the fashion of other banks than Is the
| case with those OF the Raiffeisen type.
They also do more Of general bank
Ing business. as their larger cash
| capital enables them To do. They do
not depend for their funds upon CEN
| tral cooperative banks. but receive
loans from outside institutions. They
| maintain a more expensive MANAGE
mcnt than the rural banks, and pay
dividends upon their capital stock.
ranging generally from to 7 per cent
n Few OF them, indeed, pay dividends
"f 10 per cent and IL app ears that "A
| dividend of 20 per cent Is not un-
known.
Capital shares I'm these banks aver
age little over $50. The rate Of in
tcrcst paid by them for their money
averages about "a per cent of the
total working capital, and the gross
profits about Ia per cent. After de-
ductlng the cost 81 operation and
| other expenses there is LETT a net pro
~ for distribution, which averages
about IL per cent of the share
| capital Part of this IS carried over
! ~ reserve and tho remainder is dis
| trihutcd i'm dividends. The banks loan
| money ON current account and for
| hNcd periods. loans On ihe former ba-
| sis amounting To over 40 per cent.
/ Of their business. Loans for fixed pc
! RODS are made on pledge or by dis-