APPENDIX 

 I 



SCHULZE-DELITZSCH BANKS 



The Schulze-Delitzsch credit bank is an association 

 created to provide credit facilities for its members only. 

 The necessary funds are raised by two means, one 

 material and the other immaterial, share capital and 

 unlimited liability. Each member must subscribe one 

 share, and, where as is usually the case liability is un- 

 limited, one share only. The society has thus a variable, 

 and provided it is not decaying, an increasing capital. 



The share is fixed as high as possible, i.e. as high as it 

 can be without shutting out small industrialists, who 

 have credit needs to satisfy. The actual sum varies 

 from society to society, but the minimum is about £6. 

 The object of the large share is twofold : the provision 

 of a working capital and the encouragement of self-help 

 and thrift. The latter object was especially prominent 

 in the eyes of the founder. 



The share can be paid up at once or in small instal- 

 ments, all profits being credited to a share until it is 

 fully paid. It is to the interest of a member to pay up 

 his share as soon as possible, because he receives dividend 

 upon the amount paid up only. 



The profits of the society are distributed in two 

 parts : one part to the reserve fund and the remainder 

 to the shareholders, according to the size of their 

 shares. The reserve fund, which is obligatory by law, 

 usually amounts to about 20 per cent of the share 

 capital. The entrance fees of members, which are of 

 I 129 



