THE DANISH CO-OPERATIVE BANK AND 

 CO-OPERATIVE VILLAGE BANKS 



While in most countries credit societies were developed before 

 or simultaneously with other co-operative undertakings, and 

 acted as or gradually developed into banking concerns, such 

 regulation of co-operative credit came very late in Denmark, 

 and has, indeed, only been taken up quite recently, apart from 

 the Credit Associations just dealt with. This is probably ex- 

 plained by the fact that the many local savings banks have 

 filled the need to some extent, and that the commercial banks 

 as a rule have served co-operative undertakings in a satisfactory 

 manner. But there have been several cases in which co- 

 operators have experienced great difficulties in raising the 

 necessary loans for new societies, such as the first co-operative 

 bacon factory, the co-operative egg export society, a co-opera- 

 tive feeding-stuff society, co-operative supply stores, and others, 

 even when ample security was offered. This caused consider- 

 able dissatisfaction in co-operative circles, and the feeling that 

 joint and co-operative action in monetary matters was desirable 

 was largely responsible for the formation, in 1898, of the Central 

 Co-operative Committee, as also for the first Danish co-operative 

 congress in 1903. A co-operative bank could be relied upon 

 to support every new, healthy, co-operative effort, and through 

 such a bank the co-operative societies with their very large 

 turnover could partake in the profit on their banking operations 

 which otherwise falls to the commercial banks. 



In 1905 the Central Co-operative Committee sent out 

 inquiries to all co-operative societies in order to learn how far 

 they were well served by the existing banks and to what 

 extent they would be willing to support a co-operative bank. 

 A month later two of the leading banks in Copenhagen sent 

 out circulars in which they tried to prove how dangerous it 



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