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Report, co-operative dairies, co-operative steam ploughs, and co-opera- 

 tive drainage and irrigation. "Co-operation," says Mr. Koenig again^. 

 " has proved to be the key to success in Germany, and has saved many 

 thousands of farmers from ruin." 



The Banks conducted on this principle enable farmers to obtain loans 

 on personal security only, the collective guarantee of all the members 

 or depositors being considered sufficient. " Wealthy banking firms 

 and rich capitalists were all willing enough to lend money on real 

 estate if sufficient security was forthcoming ; but personal credit is 

 what German farmers wanted. It is indispensable to buy stock, mineral 

 manures, cake, meal, seeds, tools, machinery, and to pay wages — in short, 

 to run the business. All the Union requires is the co-operative guarantee 

 of the members of the Co-operative Society, a body of men of recognised 

 standing." As all the members are personally acquainted with one 

 another, the risk is next to nothing. That the system is a sound one 

 seems to be proved by the results of the audit. In February, 1897, the 

 auditors reported that of 649 Banks in Wurtemberg, 450 were thoroughly 

 satisfactory, 192 were satisfactory with room for improvement, and only 

 seven were unsound. In Germany, the Government, by having the man- 

 agement of the railways in their hands, are able to arrange an equitable 

 system of freightage, while, thanks to the co-operative principle, the far- 

 mer " can avail himself of the lowest freights on all the materials he re- 

 quires, and on all products sent to market, by loading in quantities of 

 at least one ton." Under this system preferential rates are in Ger- 

 many ^* an immense advantage to the farmer, whereas in England they 

 are dead against him, the advantages there being reaped by his foreign 

 competitor." Mr. Koenig is surprised that this state of things should 

 continue to exist in England, and also that English farmers do not 

 form Co-operative Banks. 



How much longer this ancient industry will retain its position, even 

 in Germany, seems a little uncertain. It is already beginning to yield 

 to time and fate and the competition of the New World. A large pro- 

 portion of the soil is in the hands of peasant proprietors : some of it is 

 let as in England : and a considerable extent, the property of the 

 nobility, is farmed by the owners. The proprietor cultivates his estate 

 with the labour of the peasantry, who are practically ascripti glebes, re- 

 ceiving only a small modicum of wages in cash, and the rest in kind, 

 being boarded and lodged at the landlord's expense It seems to us 

 that if the proprietors in Great Britain chose to do the same thing, 

 and to work as hard as the Germans, they might not only improve 

 their financial position, but regain much of their former influence. 

 In Germany, though the fall in rents would indicate a decline in the 

 returns from agriculture, this class of proprietors make their own rents, 

 and " appear to thrive." They live the life of an English country 

 gentleman. They shoot partridges, roe deer, and hares, and the sugar 

 beet crops afford such excellent cover that the birds will lie till they 

 are trodden oa. Bat the exodus of the farm labourers has 

 commenced in Germany, where more profitable industries are be- 

 ginning to draw them from their native fields. The supply of labour 

 is growing daily more scanty. Men are imported from Russia and 

 Poland ; and the increase in the number of women and old men em- 



