The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1916-01-07

dence OF the parish priest The aver
age cost of management Is only enc.
NTH Of one per cent
The management OF the bank Is In
the hands OF a committee of 1--WE. with
another committee Of Ave to audit the
accounts. both committees being elect
ed by the members Of the association
at Its annual meeting in which every
member has vote Loans which are
made only to members are usual
small averaging about S25 90 and ara
always secured for some SPECIFIC pro
ductive purpose, specified in the ap
plication, To secure loan the Dor,
rover must give his note to the asso
citation, endorsed by fellow member
or supported bv collateral Of APPROX
cd type The advisability Of making
the loan In each cas-. Is passed upon
by the managing committee. and the
use TO which The proceeds Of the loan
are put Is under the scrutiny Of the
members Of the association who are
the npighbors Of the borrower.
Low Interest Rates. ,
The terms for which loans are made
range from six months to three Years
the average being about one year. In
case OF failure OF crop, in bad sea
sOnR, the loans are extended for add
tlonal periods, A very common form
Of loan In that made on current ac
count In this case the loan Is ap
the money Is drawn out only as need
ed interest being charged only on the
amount used II the money is misuset
the loan can be called at any time.
Funds for the use OF members are
derived from the sale Of capital stock
one half per cent; from reserve fund.-
| accumulated from previous years. 1t
per cent. from savings deposits anG
current accounts. IS per cent, from
central associations, referred TO later
l1.2 per cent. Deposits are accepted
from anyone, but only members are
allowed TO keep current accounts.
The rates at which loans are mad,
| TO members are very low. averaginl
from IL to IL per cent. This con
diiion is made possible from the fact
that these banks are cooperative IN
fact as well as In name USUALLY NJ
| dividends are paid on capital stock
all earnings being carried to the re-
serve funds. The more successful The
hank tho lnwar rp thn Of i,t
est charged to members The profit
| sharing policy, together with the ex
ceedingly low cost OF administration
| gives to the farmer exactly what h,
needs. abundant working capital. al q
very low rate Of interest, for periods
OF time that will enable him to plant
crop and await its maturity before
being called upon to repay the loan.
A National System.
Each Of these local Rural Banks Ii
combined into "A provincial union. al
the head Of which Is the provincial
bank which serves as clearing house
for the local banks These provincial
banks tend 10 equali2e the surpluf
funds Of the several banks and furnish
capital 10 the local banks for loans
to their members at cost Of about
one half per cent more than If paid on
deposits The provincial banks are ~
turn united with the National FEEDER
alton of l,armstadt which Is an asso
citation of practically all of the agri
cultural cooperative societies of Ger
many.
The Rural Banks Of each province
are united to form Central Go oper
ativr Association for the purchase and
sale for members OF agricultural prod
uCts on a wholesale basis or for carry
inI on cooperative enterprises of any
kind
Thus tho Raiffcisen Rural Credit
Banks provide their members with
abundant capital at low rates OF inter
est for periods suited TO their needs
and enable them to 90 operate on 0
scale scarcely dreamed OF In America
They enable the German farmers Il
cultivate better. fertillze better, tax,
better care Of their land and harvest
and market their crops To better ad
vantage Above all they furnish IN,
machinery for effective and efficient
cooperation.
HAVE YOUR PoLLeTs IN SHAPE