The chronicle=news., 1913-07-23
GERMAN COUNTRY
BANKS ARE UNIQUE

of this village. who is also the post.
master and = considerable political
figure In his community. welcomed
to hos house today five members Of
the American CommissIon on Agri-
cultural Cooperation.
Records OF the Dossenhein, hank
showed II to he D vociety Of :S5
members. about half Of whom were
iaborcrs In nearby quarry. but who
maintained small parcels Of land
they worked with the aid OF their
families and about half Of whom
were small farmers owning or rent
Ing on an average 2h acres each.
The cultivation OF these farms was
extremely intensivc-truck farming.
Il would have been called In the
United States.
One Of thc~e mcmebra entered and
counted out ten marks from = bag
which he deposited In the hank. Evi.
'iently the visit to the bank was to
the delsositors' mind something Of q
social event. lie started conversa-
tion with the chasier and was appar-
entity q bit nctticd when the cnshi~r
explained that the presence Of WIS.,
iiors made II impossible for him to
indulge his friend ir the usual
amount Of village Eoaaip. These con-
v-rsations At the bank are mn impor-
tant factor In the conduct Of the
bank. They iypify tn. Intimate re-
lations that exist between the man
aaers Of tn. inftituiioax and the
mrmbrss. and II 10 this intimacy
which makes the hanks conservative.
for everyone knows ev~ryones rlsc'y
business.
Il IL upon such deposits ~ the
one made durinK tho visit of the
Americans that the Dnaaenheim In
stitution depends chiefly for Its
funds whcrcwiih to make loans TO
IL membcrs. Il may also borrow
from the. Central Cooperative hank
with which Il 10 affiliated. Al the
present time the demands for loans
are heavy and Il has n debit At the
Central Institution. The Institution
commands about s?s.0oo in finance
its :ss members.
For their deposits the members Of
the hank receive Z per cent interest.
Deposits are also accepted from non.
ussm6rss. but ooly per csat 10 paid
them-an unusual proceeding which
II would seem difficult to accept 70
good business policy. Only about
5000 In cash 10 kept At the hank. II
In the, object OF the local bank to
lend out all Of tho money which II
receives to Its members. II. however.
the demands for loans are insufficient
to keep all cf the funds at home.
the surplus IL deposited with tho
central hank which pays the local
hank AZ per cent interest. When
the funds Of the local bank are in
sufficient 10 meet demands for loans
IL borrows from the Central bank
and pays I per cent interest on such
loans. The lonas are made 10 farm
crs either on their own note and
without other security than the H.
ability which they nave assumed up
ON entering the bnnk or. II their
standing ia no. particularly good.
upon their note endorsed by one or
two surcties. Some money .s loaned
on mortgages. although the Central
institutions discourage this prac-
ticc.
The institution is conducted by a |
board Of managers. the president Of
which dropped In Mt the bank during
the visit OF the Commissioners. OF
the board are farmers. The board
OF managers meets at fixed times and
passes upon applications for loans.
Their work. an well as the accounts
OF the cashier and the bookkceper. isl
subject to the scrutiny Of the board
OF supervision. n committee Of nine
men. All Of these officials are elect
cd by the general assembly Of ull the
members OF the bank. Besides these
checks the accounts Of the bank are
examined at least once in two years
and generally more often by an ex-
pcrt auditor and his report Ii pre-
sentcd to every member Of the bank.
The members are also kept constant
ly advised Of the standing OF their
bank with the central bank through
newspaper published by the CO.,
operative union. ''Ai
This is about ali there Is to the|
conduct Of the bank. In the case Of
the Dossenheim institution It can
hardly be called banking business
at all. but merely borrowing ami
lending busincss. Tho expenses OF