288 Cooperation in Agriculture 



individuals, from the central cooperative banks, or from 

 other banking institutions. The working capital of the 

 fifteen thousand Raiffeisen banks in Germany in 1909 

 was $461,089,632, one and two-tenths per cent of which 

 was share capital, two and six-tenths per cent reserve, 

 nine and eight-tenths per cent current deposits, seventy- 

 five and two-tenths per cent savings deposits and eleven 

 and two-tenths per cent other liabilities. The capital 

 of the bank itself, that is, the share capital and the re- 

 serve, forms three and eight-tenths per cent of the total 

 volume of capital in use, and eighty-five per cent of the 

 capital is furnished by the current and savings accounts 

 of the members. Under the Raiffeisen plan less than four 

 per cent of the total volume of business transacted in 

 Germany in 1909 was represented by the paid-in capital 

 of the bank, i.e. the reserve and paid-in capital stock. 

 It is pointed out by Dr. Lorenzoni that of the two billion 

 marks loaned to the farmers in 1909, eighty-eight and 

 eight-tenths per cent was provided by the savings and 

 deposits of the farmers themselves, or deposits made 

 through local pride. It will be seen from these data that 

 an enormous business is transacted by the Raiffeisen 

 banks on a very small capital. 



The Loaning of Money 



The money loaned to the members of the Raiffeisen 

 banks are both short-term and long-term loans. About 

 one-third of the loans are of the short-term variety and 

 are principally for current expenses. The member se- 

 cures his loan by the indorsement of the notes by other 

 members, the deposit of stock certificates, valuables, or 



