OF THE 



Vol. III.] June 1896. [No. 1. 



CO-OPERATIVE AGRICULTURAL SOCIETIES IN 

 GERMANY. 



Co-operative associations in Germany were legally recognised 

 for the first time by an Act passed in 1868, but the influence of 

 this legislation upon the development of co-operation amongst 

 agriculturists was not so beneficial as that of the law of the 1st 

 May 1889, which differed essentially from the earlier measure, 

 inasmuch as it gave a locus standi in courts of law to 

 associations constituted on the basis of limited liability, pro- 

 vided for the registration of co-operative societies, and empowered 

 such registered societies to hold and transfer property. 



All societies, whatever may be their system of liability, may 

 be registered under certain conditions ; but the law was intro- 

 duced mainly with the idea of stimulating co-operation by 

 limiting the liability of the individual members, and it was hoped 

 that this would be a great incentive to farmers to combine. 

 Agriculturists in Germany appear, however, to find little at- 

 traction in limited liability, for of the many hundreds of co- 

 operative societies existing in the rural districts of the Empire, 

 very few are constituted on that principle. 



In the earlier years of the movement, co-operation found its 

 most effective application in Germany in the establishment of 

 small loan societies or people's banks. At first, these associations 

 were founded mainly for the benefit of the artisan class in the 

 towns, and their operations were confined to the granting of 

 loans on easy terms to their members. The earliest co-operative 

 organisation for the purchase of raw material was formed by 

 Herr Schultze-Delitzsch in 1849 amongst some cabinet makers in 

 0 91921. Wt. ' A 



