evolve a scheme whereby they might secure funds at a reason- 

 able rate of interest. The result of his efforts was the estab- 

 lishment of the so-called '' Raiffeisen banks," which have 

 since proved such a blessing to the lower classes in Germany. 

 Before his death these banks had become very numerous. 

 The memory of " Father Raiffeisen," as he is known among 

 the German people, is one of their choicest possessions. 



Briefly, the principles upon which the Eaift'eisen banks 

 are founded are as follows : — 



(a) Unlimited liability of all members as security. 



(&) Permanent reserve fund as additional security. 



(c) Limitation of area, insuring personal acquaintance 

 of all members, and none may belong to more than one society 

 at one time. 



(cZ) Loans are made only for productive or provident pur- 

 poses and only to members; investigation made first as to 

 the purpose and then as to the actual use of the loan ; maxi- 

 mum time of loan five years. 



(e) Facilities for repayment by installments; borrower 

 also at liberty to cancel full debt by payment at any time. 



(/) Absence of profit seeking, dividends being limited to 

 rate of interest paid by borrower, if any are declared. 



(g) Office holders, with single exception of secretary or 

 " accountant," not remunerated for services. 



(h) The aim is to improve not only the material but the 

 moral condition of their members. 



The capital is originally raised upon shares which are 

 sold to members, the average cost of these shares being in the 

 vicinity of $25. Regardless of the number of shares held 

 each member has but one vote. ISTo loans are made to others 

 than members, and as a rule they are not made for more than 

 four years, never for more than five. They are payable, not 

 in a lump sum at a certain specified date, which often comes 

 so hard on the borrower, but may be paid in installments. 

 In every case the length of the term for the repayment of 

 loans is fixed in advance, and this term and the amount of 

 installments are proportioned to the object of the loan and 

 the ability of the borrower to repay. These banks receive 

 deposits both from members and outsiders, although confin- 



