CREDIT ASSOCIATIONS 



The Credit Associations were the very first manifestations of 

 the co-operative movement in Denmark, and for that reason 

 should have been mentioned in the first chapter, in conformity 

 with the general chronological arrangement of the chapters. 

 But for practical reasons it has been decided to deal with them 

 in this part of the book, jointly with other co-operative financial 

 un^takings such as banking, assurance, and the hke. 



l^t the time when the first Credit Associations were formed 

 in Prussia in the eighteenth century, as mentioned in the 

 introduction, the need of credit was also felt in Danish agri- 

 culture owing to the great reforms, the inclosures and general 

 improvements^ It was more or less successfully met by various 

 Government measures. The Credit Associations known in 

 Prussia as " Landschaften " were not generally known or 

 properly understood in Denmark until in 1839 an economist, 

 named Bergsoe, pubhshed a reasoned proposal to form a 

 Credit Association of Danish landed estate-owners on the same ^ ^'^j^^'^^ 

 lines as the German associations, of which he gave a full de- 

 scription, having made a study of them on a journey the previous 

 year. His proposal was discussed at large agricultural meetings 

 in 1845 and 1846, but hung fire until the free constitution of 

 1849 brought new men to the fore. A Law on Credit Associa- 

 tions and Credit Offices for Owners of Eeal Estates was passed j 

 in the Eigsdag on the 20th June, 1850, and this Law is the ' 

 foundation of all the Credit Associations formed in Denmark. 



This Law grants certain privileges and lays down certain 

 conditions for obtaining them. The chief privilege exempts 

 the Bonds issued by the Associations from stamp duty ; these 

 bonds may be either inscribed or to bearer ; they may be 

 transferred free of stamp duty. Should a debtor fail to dis- 

 charge his obhgations the Association may levy a distress and 



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