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PROVISION OF BORROWING FACILITIES. 



had in view simply the peasantry and rural classes. As in the Schulze 

 Delitzsch societies, so in the Raiffeisen Unions, the principles of 

 action are those of self-help, association, solidarity, prudence, thrift 

 and public spirit, to which, however, RAIFFEISEN added unselfishness, 

 in that dividends are forbidden ; all profits, less fixed interest on the 

 very small shares introduced only in obedience to the law go to a 

 common fund to be used for purposes of general utility, and not for 

 private gain. RAIFFESIEN, like SCHULZE DELITZSCH, demanded no 

 privileges for his societies, but was content to base their success on 

 honest, energetic and prudent action. In the words of S. WOLLEMBORG, 

 who, in Italy has founded similar institutions, he believed that, "when 

 a whole class the peasantry is in danger, when the need is general 

 and abiding, no kind of mere assistance, whether from the State or from 

 individuals, is of any avail; rather is it mischievous, for it not merely 

 leads men to count habitually on such succour, a succour which must 

 fail at last, and render more acute the consequent distress, but it 

 gradually stifles the feeling of self-reliance and personal responsibility." 



Whether he was right in rejecting or in not seeking temporary 

 aid for nascent institutions, is arguable ; success may have been 

 delayed by the great difficulties of the start; on the other hand, when 

 achieved it was undeniably due not to external aid but to intrinsic 

 merit. In actual fact, two or three advances have been made from 

 the State apparently as encouragement or premia and as aids to audit. 



A reat deal has been made of the differences between these and 



o 



the Schulze Delitzsch societies ; but on analysis both seem to have 

 similar aims ; thrift and the promotion of general well-being is the 

 common aim of both; but while SCHULZE DELITZSCH places thrift and 

 saving prominently forward as the chief factor of credit and of progress, 

 RAIFFEISEN, while anxiously promoting thrift, desired to guide the 

 peasantry towards unselfishness and public spirit rather than to 

 individual profit. SCHULZE DELITZSCH encouraged thrift and attracted 

 capital by giving dividends as large as possible, so that there is a 

 tendency to opposition between borrowing and non -borrowing members, 

 and possibly to unsafe extensions of credit and enterprise. RAIFFEISEN 

 allows no dividends, but only market interest on deposits, and all 

 further profits go to a reserve ; there is but small share capital which 

 is intended (1) for the ordinary purposes of a reserve, (2) for purposes 

 of public utility. Exaggerated views prevent the partizans of either 

 side from doing justice to the other ; both are doing a great work, 



