338. PROVISION OF BORROWING FACILITIES. 



starting and working these small local societies is not only that of 

 their weakness when isolated, but also that of finding capable men 

 residing within the area ; hence the group and union system. Five 

 groups are now in existence embracing probably all the individual 

 societies. In addition to these local groups there is a Central Union 

 for the whole of Germany to which all societies may belong. Of 

 the local groups, Neuweid, the original, will be taken as an example. 

 It was founded by RAIFFEISEN in 1877 with the object of extending, 

 developing, and protecting the local societies. One chief duty is 

 that of instructing the peasants in the proper use of credit; this seems 

 more useful than any other, for cheap credit, without due prudence 

 in its use, means only quicker ruin. Doubtless, too, though it is not 

 so stated, the peasants are taught the arithmetic of credit, i.e., the 

 calculation of profit and loss probable on a given transaction. 

 Instruction in book-keeping and the audit of the accounts is another 

 chief duty; a regular service is organized for this purpose, and the 

 inspectors give free instruction in the subjects to the societies that 

 ask for their services. Another duty recently undertaken is the 

 collection and preparation of systematic statistics ; they are still 

 very deficient. A further and most useful development is the 

 purchase of good seed, manure, implements &c., for the local 

 societies upon demand by the latter ; e.g., in 1887 the Neuweid 

 Union alone furnished to its members, at cost price, 15,000 tons of 

 manure and forage, and above 1,600 waggons of coal ; in the spring 

 of that year, it bought 2,000 tons of nitrate of soda at 88 J marks 

 per ton, the price otherwise being 1 30 marks, hence a large gain to 

 the members ; in 1889 this business had increased, and so again in 

 1891, a considerable additional business was done. The steady increase 

 of this class of business is highly satisfactory, and it seems that up 

 to 1893 the Union had thus supplied considerably over 500,000 

 worth of goods. Here, it will be seen, is indicated a rapproachment 

 between the duties of the local societies as credit societies and as 

 Agricultural associations. Finally the Central Union busies itself 

 with the promotion of life assurance, and of assurance against the 

 effects of hail, cattle-disease and other frequent disasters. 



The Central Union holds a general assembly every year composed 

 partly of the representatives of the individual societies, partly of 

 delegates from the local groups, which represent the societies belonging 

 to them. Discussions take place, and a representative syndicate or 



