PROVISION OF BORftOWING FACILITIES. .'J25 



and while the Stabilize Delitzsch banks are far ahead in numbers and 

 operations, the Raiffeisen societies deal with problems of far greater 

 difficulty, viz., the advancing of small loans for long terms to men 

 who, though they possess some property, obtain their profits only 

 in small instalments, and after considerable delays, and with a certain 

 amount of preeariousness and uncertainty; the men themselves more- 

 over, are more difficult to deal with than the comparatively businesslike 

 artisan and tradesman class. Hence a considerable divergence in 

 methods as well as difference in results. 



The principle of solidarity is common and essential to both : in the 

 one it is simply a means of obtaining credit, in the other it is not only 

 that, but a bond of brotherhood. 



General Features. The chief features are (1) that the society 

 is absolutely local, the limits of a commune (village) being strictly 

 maintained as the limits of membership and of operation, (2) that the 

 administration is equally local, members alone being eligible for 

 appointment, and is absolutely gratuitous, (3) that there is but small 

 share capital, all funds being borrowed on the guarantee of solidarity 

 and eventually of the reserve, (4>) that there are, therefore, no dividends 

 to pay, and all profits go to the reserve, (5) that only members, who 

 must be residents of the commune, can get loans, (6) that loans may 

 be of long term, extending to ten or even twenty years, and (7) that, as 

 far as possible, all funds are the result of local thrift. 



Local Character. A Raiffeisen bank is simply a village society 

 of agriculturists, labourers, and shopkeepers united for common 

 interests ; at first a few of the better class unite ; these by example 

 and precept, draw in others. The first steps are hard, but once fairly 

 started, there is little difficulty, as the advantages are manifest to all. 

 It is considered that the village should have not less than 400, nor 

 more than 2,000, inhabitants; several small villages may unite if too 

 small for a separate society. This principle of restricted area is 

 deemed essential : the bank is thus at the borrower's doors. It can 

 be administered gratuitously and by the most trusted men of the 

 community; it has a perfect knowledge of the candidates, andean 

 reject all unworthy of the honour who would be likely to discredit the 

 the seciety ; it tends, therefore, directly, by reason of the advantages 

 of membership, to encourage or to incite men to industry, thrift and 

 sobriety ; as a priest of the Rhenish provinces once said : "The bank 

 has done more in my parish for morality than all my sermons" ; it 



