126 



AGJaiCULTUKAL BANKS IN BAVAillA. 



[Sept. 189i). 



system, for, as this increased, the credit of the associations was 

 strengthened, and the risk to which unlimited liability exposed 

 the richer members was diminished. 



The absence of shares was a feature of the Bavarian Raiffeisen 

 banks until 1873, when share capital was made obligatory by 

 law in all credit associations in the kingdom. The Raiffeisen 

 associations, however, met this difficulty by making their shares 

 as low as possible, in most cases 10s. payable in monthly instal- 

 ments of about Sd., no member being able to acquire more than 

 one share. 



The operations of the credit associations are usually limited to 

 districts with a population not exceeding 2,000. This limitation 

 is considered essential so that the circumstances and character 

 of the members may be easily known. 



The object is not to secure a large roll of members, but rigidly 

 to exclude everyone who is not really eligible. That done, the 

 association is organised on entirely democratic lines. No 

 difference of any sort is recognised between poor and rich, 

 except that the rich, bearing the brunt of the liability, are, by 

 general agreement, allowed to take the leading part in the 

 administration. 



It would appear that little difficulty is experienced in form- 

 ing a Raiffeisen association in Bavaria. In a district where 

 there are but three honest, competent, and willing men — the 

 one to act as accountant, the second as president, and the 

 third as chairman of the supervising council — a society can 

 be formed. Five persons are chosen for the directorate, and 

 nine are selected to act on the council of supervision. After- 

 wards, a general meeting is held at which the articles of associa- 

 tion are discussed and settled, and the formation of the society 

 is subsequently announced to the provincial Court of Justice. 

 The association is then in working order. 



The accounts have to be gone through four times a year, but 

 they present no particular difficulties, and either a clergyman or 

 schoolmaster is well qualified for the work. It is calculated 

 in the smaller associations that the accountant can dispose of 

 his work during 10 months in the year by merely giving up 

 to it a quarter of an hour daily. 



Loans are granted by the directors, who are generally selected 

 from different parts of the district covered by the society's 

 operation, in order that among them they may have as wide an 

 accquaintance as possible with the characters and circumstances 

 of the members. 



A person who desires to obtain a loan is obliged to satisfy the 

 association on the following four points : — 



(1) He must notify at an early date his application either to 

 the director or to the accountant of the association ; (2) he must 

 explain for what purposes he requires the money ; (3) he must 

 state how much he can pay back yearly ; (4) somebody, with 

 whom he is on friendly terms, must go bail for him. 



