332 TRANSACTIONS OF ROYAL SCOTTISH ARBORICULTURAL SOCIETY. 



of district savings banks and other institutions authorised to 

 advance money on the security of real property. 



On the other hand, in agriculture, as in every other business, 

 when an amount of capital has been provided sufficient for the 

 average needs of the undertaking, it frequently occurs that the 

 operator finds he has money on hand which he does not immedi- 

 ately want, and quite as frequently that he has momentary need 

 of money which he has not got, in order to make the most of his 

 business, by taking advantage of favourable openings — buying in 

 a cheap market — holding his produce for a rise — and the like. 

 To provide the money thus required for a few days or weeks — in 

 agriculture more often for a few months or even years — is the 

 function of personal credit. 



Every branch of business carried on in the great mercantile 

 and industrial centres is conducted with the help of a highly 

 developed system of mutual credit, and all sorts of devices have 

 been conceived and adopted to make every pound or pound's 

 worth handled by those who carry on these various businesses as 

 profitable as possible. 



The German farmer, besides protective customs' duties and 

 bounties, the permanent advantage of which is open to discussion, 

 enjoys sundry Government favours, and exceptional facilities as 

 regards real credit. In addition to this, he has evolved out of the 

 small beginnings of Schulze and Raiifeisen (of late years with the 

 active assistance of the State) a system of co-operative personal 

 credit and banking which goes far to place the poorest farmer in 

 as good a position to make the most of his business in his degree, 

 as that of the richest merchant, and which is daily going further 

 in the same direction. 



Roughly speaking, there are now nearly a million farmers in 

 the German Empire, who are, as members of co-operative agricul- 

 tural banks, in a position to obtain 3^ to 3;| per cent, interest on 

 any savings or on any money they do not require for use, even 

 for the shortest periods — in an increasing number of cases on 

 credit balances in current accounts — while they can borrow any 

 sum for which they can give reasonable security (often the 

 security of a well-known good character is sufficient) at from 4 to 

 iij per cent, interest for short periods up to two or three years, 

 subject sometimes to no charges, sometimes to very small charges 

 in addition to the moderate interest; while for longer periods 

 they can, without any delays, at insignificant cost, obtain money 



