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PROVISION OF BORROWING FACILITIES. 



now several groups, and these again are linked to a central agency. 

 There is also a Central bank for equalizing funds by lending the 

 surplus of some to meet the needs of others. The loans granted by 

 these societies go down to sums that would be considered small even 

 in India where money is so much more valuable, showing that these 

 societies are, as indeed their constitution and membership indicate, 

 the banks of the small rural folk. 



RAIFFEISEN desired the moral, even more than the material, develop- 

 ment of the rural classes, and endeavoured, therefore, to eliminate 

 the desire for profits, foreseeing that such a desire would infallibly 

 lead to an opposition between borrowing and non-borrowing members, 

 and to the loss of the guiding principle of brotherhood and mutual 

 help, which was the central idea of his system. 



His efforts were but slowly crowned with success; beginning in 

 1849 there were only four by 1868; since that time they have 

 established their reputation and are now developing at the rate of 

 several per day; in September 1893 the original Neuwied group itself 

 completed the number of 1,000, and it is calculated that there are 

 already several thousands in existence. 



Their group organization is not so successfully carried out as is 

 desirable, and statistics are very defective ; it is stated however, that 

 not a single society has ever become bankrupt, while the vast increase 

 in numbers amidst a poor and conservative clientele, argues their 

 extreme suitability to rural needs. In Italy the work of these 

 societies has been very particularly described by their founder, SIGNOR 

 WOLLEMBORG, and the results as depicted by himself and other 

 reporters are encouraging and stimulative in the highest degree, 

 Both in Germany and Italy these societies have their organ which is 

 devoted to co-operative news. 



State Banks. The establishment of State banks is out* of the 

 question ; it is impossible and would, if possible, be inadvisable. 

 Impossible since, under the postulates of credit proximity, u security 

 of the lender, facility and safety to the borrower there must be a 

 bank in every village, or minor group of villages ; such a ramifica- 

 tion would demand an establishment and find work equal to that 

 of the existing Land Revenue Department ; it is far more difficult' 

 for a great central agency to lend annually to millions of people, 



