WORKING CREDIT FOR FARMERS. 259 



struck up readily an alliance with Dr. Haas's Union and, to 

 support it in a particularly showy and impressive way, 

 founded, in 1895, its State-endowed " Central Bank for Co- 

 operative Societies " — the endowment of which out of State 

 funds, after various increases, now stands at ;^3,75o,ooo. 

 That State Bank was to give ready assistance to acceptable 

 societies with funds which, it was argued, would not be 

 otherwise forthcoming. It would of course be in a good 

 position to help, seeing that it was given power to engage 

 in other banking business as well, which in point of fact 

 proved to be the business which made the chimney to smoke, 

 the co-operative business being at first scarcely remunera- 

 tive. The political aim pursued by the Government in 

 the formation of this Bank was really far more ambitious. 

 The Bank was — as has since been frankly owned — to link 

 all co-operative organisations — not agricultural alone — 

 to itself and become the mistress, the " official head," as 

 its able President, Dr. Heiligenstadt, has called it, of the 

 movement, which, if left to itself, so he added, was held 

 to involve " danger to the State." Other Unions were 

 accordingly to be attracted to its counters. Scenting 

 mischief, they proved slow in coming. However, on non- 

 agricultural ground, a distinct Union of " Trade societies " 

 " Gewerbegenossenschaftsverband ") was promoted, to pit 

 against, on the one hand, the Schulze Delitzsch societies, 

 the majority of whose members were declared Liberals, 

 and, on the other, to hold the balance against the ever- 

 advancing, hated Socialists. 



The linking up of the two organisations — the State Bank 

 and the new co-operative Union, which has since taken 

 the attractive title of " Imperial Union " — was effected with 

 judicious skill. The internal organisation of the Union 

 was not interfered with. The societies were left self-govern- 

 ing. And advances were to be made to them only through 

 their provincial Central Banks — which meant no concession, 

 inasmuch as it provided more ample security for the State 

 Bank. The sacrifice made — unbeknown to themselves — 

 was on the side of the societies. 



In this way very large sums have been made available 



