AGKICULTUEAL COOPEEATION IN DENMARK. 85 
ciations could finance themselves independently on their own accu- 
mulated reserves. This was possible in only a few cases, and when 
the State loans were recalled in 1908-1916, most of these loan asso- 
ciations were discontinued. 
COOPERATIVE RURAL BANKS. 
The Cooperative Rural Bank (Andelskasse) is a more recent insti- 
tution, organized in 1915. This is a local cooperative banking in- 
stitution, which gives its members a complete banking service. Each 
bank restricts its business activities to its own locality and is inde- 
pendent of similar banks in other communities. Its members are 
bound jointly for the association's liabilities. It may accept de- 
posits from nonmembers, but can grant loans only to its members. 
These cooperative banks have met with substantial success and now 
number about 150. The majority of these cooperative rural banks 
have purchased shares in the Danish Cooperative Bank at Copen- 
hagen, which gives them good banking connections for loans and 
deposits. 
THE DANISH COOPERATIVE BANK. 
The Danish Cooperative Bank at Copenhagen is one of the younger 
cooperative enterprises in Denmark, having been started in 1914. 
That no cooperative banking institution developed among the co- 
operative associations at an earlier date may be attributed largely to 
the liberal financial support which the savings institutions have ex- 
tended to the local cooperative associations. In building the first 
cooperative creameries and bacon plants in different sections of the 
country, it was common to obtain a loan from the local savings insti- 
tution. However, the need among cooperators for their own banking 
institutions was felt for years. The history of Danish cooperation 
reveals many difficulties experienced by the farmers in financing a 
new cooperative enterprise, especially large associations. The limited 
capacity of the savings institutions often prevented them from sup- 
plying the larger amounts of capital required by the larger central 
cooperative organizations. Frequently, where a new, large, coopera- 
tive enterprise was to be financed the private banks lent money with 
great reluctance and demanded unreasonable security. 
The need for a cooperative banking institution was strongly advo- 
cated by the cooperative leaders at the close of the last century. 
Besides an available supply of money, the larger cooperative asso- 
ciations would also benefit by the earnings of their large banking 
transactions, when conducted through their own cooperative bank- 
ing institution, it was argued. In 1906, a committee was appointed 
by the central cooperative committee to work out a definite plan for 
the proposed bank. In 1908, plans for the formation and operation 
of a cooperative bank were agreed upon, and, to insure a sufficient 
volume of capital and business before the bank was started, the 
various cooperative associations were solicited to subscribe for capital 
stock. The financial difficulties involved in providing necessary 
operating capital for the new cooperative cement factory hastened 
the establishment of a cooperative bank. 
The Danish Cooperative Bank was opened in Aarhus, October 7, 
1914, but since 1918 the main bank has been located in Copenhagen, 
