1906.] Agricultural Credit in Germany. 



729 



began to be realised. Isolated from each other, and, in the case 

 of the Raiffeisen banks, necessarily confined to small areas, with 

 correspondingly small funds, they were hardly in a position to 

 fulfil the expectations entertained of them, and a consolidated 

 body was felt to be a necessity. With this object provincial 

 central banks were formed by combinations of societies, and 

 some of these were afterwards affiliated to still larger institu- 

 tions, such as the Central Bank of Neuwied. It will be easily 

 understood that the centralisation of co-operative banking was 

 a matter of some complexity, and that the measures taken by 

 the various societies were by no means uniform. A detailed 

 description will be found in a series of reports presented to the 

 International Co-operative Congress at Budapesth, to which 

 those interested in the subject should refer. The follow- 

 ing general summary indicates, however, some of the main 

 features : — 



The Central Bank of Neuwied. — In the case of the Raiffeisen 

 societies, the first central bank was formed at Neuwied, in 

 Rhenish Prussia, in 1872, by eleven societies. In 1876 it was 

 re-formed as a joint-stock company with a share capital of 

 ;£i 2,500, which was gradually raised until in 1900 it stood at 

 .£500,000, of which £4 15,000 had been paid up in cash by 3,754 

 affiliated societies. 



This organisation, known as the " Landwirtschaftliche Central- 

 darlehenskasse fiir Deutschland," besides carrying on the busi- 

 ness of a banker, also buys agricultural requisites and sells 

 produce for the benefit of its societies. The funds required are 

 provided by (1) the share capital ; (2) the deposits received, or 

 loans raised if possible for long terms ; (3) the commissions 

 charged and the margin of interest ; (4) proceeds of the sale of 

 goods ; and (5) bonds and debentures not made redeemable at 

 will. These funds are employed for advances in current account 

 to the branch banks and societies which are members, as working- 

 capital in the sale and purchase business, and for discounting bills 

 and advancing money on security. 



Business between the bank and its societies is conducted by 

 branch banks, but every shareholding society is directly repre- 

 sented at the general meeting, which elects the board of 

 directors. Each district in which there is a branch bank has 



