GERMAN CREDIT ASSOCIATIONS.

Auckland Star, Volume XXVIII, Issue 210, 10 September 1897, Page 4

GERMAN CREDIT ASSOCIATIONS.

Half a century ago, a Saxon lawyer named Herman Schulze, of Delitzseh, conceived an idea which was little short of an inspiration. In his capacity as President of a Labour Inquiry Committee set up by the State, he put his finger on tbe weak spot in the national, industries. A close study of economic problems convinced him that tho real cause which retarded the industries of the Fatherland was not so much lack of enterprise or resources as want of cheap money. By his influence amongst the working classes he drew about him upwards of 1,600 labour associations. In 1849, he devised a scheme of uniting the shoemakers and cabinetmakers in an association, mainl}*for the purpose of freeing them from the grip of usurers and enabling them to obtain the raw materials of their trade, leather and wood, at the lowest market prices.

Prom this small beginning has developed that great system of co-oper-ation known as the Delitzseh Associations, which have spread all over Germany, so that now the combined organisation furnishes to its members an annual credit amounting to the enormous sum of £95,000,000 sterling. The association consists of small farmers, artizans, tradesmen, and all others. To obtain cheap credit for farmers it transacts a general banking business, the working* capital being provided from the payments bj| members supplemented by a reserve fund, the admission fees ranging from 3/0 to 5/G, the maximum amount of contributions being limited to about £70. There are now in Germany many associations which have accumulated capital to the amount of millions of marks, a mark being of the. equivalent value of lljd, English. Loans are made to members upon personal notes, stock, bonds, endorsed bills or other securities. The term is usually three months, but in the case of farms the advances are repayable after the harvest. The reserve fund is drawn upon to cover any loss or deficiency at the end of the year, but it is never used to pay dividends, 'as in many British and Colonial ventures with who.se methods we are unfortunately too familiar. If the reserve fund is inadequate to meet liabilities, the deficiency must be met by the members in equal portLns. It is not the business of the association to pay large dividends, but to provide cheap credit for legitimate trade and industry. Taking one of the associations as an example, we find that at the end of last year it had a membership of 3,914 persons. It came into existence in 1565, and in 1896 the aggregate amount standing to the credit of members was £69,862, or about £17 17s per head. The reserve fuud was £8,000, and the special reserve fund chargeable with dividends, £8,800. The total business transactions during the year 1896 amounted to £2,600,000, and loans were granted to the extent of £200,000, an average of nearly £50 per member. But of the total advances, 61per cent, were to farmers. Discounts were made to the amount of £275.600, of which nearly 45 per cent were to farmers. Business was transacted by 209 members with open accounts to the amount of £157,000, an average of nearly £766 per customer. Fifty-one farmers had open accounts on which they were granted credit to the ex-

tent of £12,172, or an average cf over J £230 each. Loans were advanced to j the amount of £49,000 to 40 members on collateral security of stocks and | bonds. _ ; The Savings Bank showed a balance of £40,9-10, the deposit account being £42,600. Of borrowed money, the net amount at the end of the year was £83,637. The net amount at the credit of members, including reserve funds, was £80,494. In spite of the low rates of interest charged or. advances, the net profit of the year's trausactions amounted to £4,800, which was allotted as follows :—5 per cent, on £63,030; 1 per cent, on £636, payable in 1900: remunerations.^ £53; additions to ordinary and special reserve funds, leaving £800 to be : carried forward to 1897. i No more remarkable proof of the extraordinary success of this institution could be adduced than the fact that the total cost for the year of managing this enormous business was only £1,190. We should like to be able to point to any concern in this colony doing business on an equal scale which could show such 1 evidence of economical working. But ■ the crowning success of the association is summed up in the pithy but pregnant remark in the annual report, "No losses were incurred during the year."

His Honor Mr Justice Conolly will hold a sitting in Chambers to-morrow (Saturday) at 11 a. m. Reference was made at the meeting of the City Council last evening to the death of the late Treasurer, Mr W. E. Payne, and it was resolved that a letter of condolence be forwarded to the mother of the deceased. The question of appointing a successor was referred to the Finance Committee. Cr. Farrell suggested that the Treasurer's oflice might with advantage be amalgamated with others in the same department. The Police Court Buildings are receiving their annual "spring cleaning," and lightsentence prisoners are at present busily engaged in scrubbing and white-washing ! the place from top to bottom. The business of the Court has been conducted during the week to an accompaniment of clattering and scrubbing, ami the Courtroom just now presents rather a grim .appearance with ladders and scaflblding all round the walls, and floors devoid of carpet. The removal of a year's dust from the walls and window-ledge*- still further changes the wonted aspect of things. The " deaning-up" will not be finished for some days yet, and it is probable that the j two Courts will have to make shift with ! one Court-room as best they can while the i aforesaid prisoners "go through the Court" upstairs. The Wairarapa paper says that Mr Bennett, who has for the last twelve months been with a party prospecting the Tararu ranges behind Shannon and Levin, speaks positively of the lake which has long been supposed to lay per tin in the hills. He has seen it, and locates it somewhere about twelve miles westward behind the "Heights" near Shannon. The lake is at a high altitude, and is surrounded mostly by scrubby bush, and is about I three miles long by a varying mile broad, ft is fed by a stream entering at the upper end, and the overflow descends from the lower end by a stream, which evidently drains into the Oban River. Gold is said to exist in the neighbourhood.

Before the ordinary business of the CityCouncil began last evening, the Mayor, Mr P. Dignan, at the request of the Royal Humane Society of Australasia, presented a certificate to Mr Thomas Charles Moyle, steward of the s.s. Gairloch, for saving life at New Plymouth.

The Works and Tariff Committee of the Harbour lUward met yesterday afternoon. The following recommendations were made : —l. That the offer of dredging plant by Mr A. H. Ilassell be declined. 2. That the Calliope Dock be lighted with a gasoline, torch, as an experiment. 3. Re Moor of Calliope Dock, that consideration be dtferred til. the Committee have visited the dock. 4. That 10 gas lights be provided in the shed on the Hobson-street Wharf, and that the suggestions as to formation of roadway to the wharf be deferred. 5. That the plans and specifications of the Rangitoto Wharf, be approved and tenders called for the work.

The Secretary of State for the Colonies, in a depatch to the Governor, states'that the jubilee address of the New Zealand Veterans' Association to the Queen was laid before Her Majesty, who much admired the taste and skill with which it had been executed, and was graciously pleased to command that her thanks should be conveyed to the New Zealand veterans for their manifestation of loyalty.

At a final meeting of the executive of the Wellington exhibition held at the beginning of the year, the net profit was reported to be £1,643, besides the building fitted with electric light, which was given to the Education Board. It is proposed to devote the money to a building for the uses of industrial associations, and the promulgation of technical education, cooking, etc.

At the .Magistrate's Court yesterday afternoon before.Mr H. W r. Brabant, S.M., A. P. Home, legal manager of the European Goldmining Company (Limited) sued William Frick, a shareholder, for £2 Is Bd, being an unpaid call of Id on 500 European shares held by defendant. It was stated that defendant paid seven calls at various times, and when the eighth was made authorised the legal manager to pay the call for him. At a later date a ninth call was made, and this defendant refused to pay, asserting that by not paving the previous call his shares had been 'forfeited, and he could not be asked to pay. The Company, therefore, sued for the amount of the last call. Defendant asserted that he had not given the manager any authority to pay the previous call for him, as he wished the shares to be forfeited. His Worship, in giving judgment, said that if the eighth call had been paid by defendant, he was liable for the payment'of the ninth call, but if.not he was'still liable for the unpaid eighth call. His Worship held that no authority was .riven plaintiff by defendant to pay the call. He was, however, still bound to pay the ninth call. Judgment was, therefore, given for plaintiff tor the amount claimed, each party to pay his own costs. Mr Burton appeared for the plaintiff and Mr Parr for defendant

A Conference of Charitable Aid Boards will be held at Wellington on the 18th inst. to discuss the proposed legislation regarding the distribution of charitable aid.

The amount collected to date and remitted to Mrs Can, whose husband has been imprisoned for grossly illtreating his wife, is £12. Subscriptions are still cominc in and much sympathy is shown for the unfortunate woman and her family.

Last night a highly profitable debate took place in connection with the Pittstreet Literary and Debating Society upon the subject, " Which is the greater factor m the formation of character, Heredity of Environment?" After Mr A VV. Ellaby had tried to show from analoX history, and science that heredity was the greater power, Mr G, Laurenson' took the other side, and combated several of the previous speaker's statements. Although no vote was taken, it was pretty clear that m the minds of most present heredity and environment were of equal importance in character formation.

At a meeting o the Executivei of the , Eltham-Auckland Railway■ Lgjuj^ at Eltham, Taranaki, last *rda, , it stated, in connection with the liopliop Auckland-Taranaki : President of the *^^& ti pg i Commerce (Mr H- lvenw-1"^ tn invite him Taranaki, and it was Voided to m^ten . to meet the League and diwnw i« ™Jfr \ matters. Mr Kent is \ Ins had an interview with the c^ uK : oflheLeigue regarding the proposed railAvay over the Stratford route, . MrH. Connell's Glee Club gave a con-; cert in St. Sepulchre's .^ttTdanceJ evening. There was a large attendance, the H being crowded to tUedo«^rhe concert was opened by tlc o^ertur " Franzosisehe." Mr Cousins sang » °°J ] land Serenade " in a very acceptat Lmer. Mrs Connell ™d Miss iiee^e ; cave as a duet Gounod's beref t aa r e; j ATrs T Hope Lewis sang ; Kameattx-anS with Miss Reeve ami. Mr Cousins tookjmrt in the trio Break, Break " Miss Kisshng sang II I^lo' Sr rendering of thisNvell-known gng hein-v hio-hlv appreciated. Mr Chas. Kiss fr SSAuAS " Toreador Holam capital style. The glees, '' Come, Doi othj, j by the Glee Club, and later on they ako , rendered "Luna " and "The House, fhat Jack Built." The Glee Club also contri; bated the part songs, "Autumn bong, I " Praise of Spring," "The Sands o Uee , Jd ™ L<Sse Pthe°Sail." All the items of; Se Club were well and faithfully rendered, j their best ellbrt being "Come, Dwjotlg, Come." Several vocal and piano quartettes , were .riven by members o/the Glee Club, and tiie trio << The Swallow" was tune-1 fully sung by Mrs A. Kober son and^e Misses fierce. Mr Connell. and Mr*,; Egerton played the piano duo Folme, : and a very enioyable concert was brought; to a clos?by thi singing of the National | Anthem by the Glee Club. ; The plain and fancy dress ball in con- : neetion with the social re-unions held fortniohtly in the Parish Hall, Eden Crescent took place last evening in the Choral Hall The Hall was tastefully decorated with coloured paper and Japanese ware. About 200 couples were present, most ot the dancers being in fancy dress. Many of the costumes were very tasteful, and had the charm of novelty. The gallery and stage were crowded with spectators. I he, large number of dancers present made the j floor somewhat crowded. Dancing was, kepi up till a late hour, and the ball was much enjoyed by all who attended. Last evening an entertainment consisting of tableaux interspersed with songs and pianoforte solos was given in St. Mary's Parish Hall, before a large audience. The tableaux were very effective. Musical selections were given by Misses Gay and Etheridge, Mrs Hugh Wright, Mrs Sealey, Mrs Bussell, Miss M. Whiison, Mr Claude Kissling and Mr Whitson. The shortest day of the year at Klondvke will occur on the 21st of December, when there will be about three hours and twenty minutes between sunrise and sunset. The night before Christmas will be over twenty hours long. Under these circumstances , the man who will send a big stock of kerosene and paraffine candles into the country will came back with plenty of gold dust, if he ever gets back at all. The treasurer of the Women's Home, Parnell, begs to acknowledge the followingsums received in July and August:—Rev. F. G. Evans, Gs ;' Messrs Smith and Caughey, £1 Is; Mrs Robert Rose, £1; Mr R. Ormsby, 10s; thank offering, 10s. There are ten girls and six infants now in the Home, and help is urgently needed to carry* on the work. We publish to-day the programme of the annual sports in connection with the Waihi Brass Band and Waihi Rugby Union, to be held at Waihi on Tuesday, November 9th next. Nominations close with the Secretary on October 16th, and handicaps will appear about October 20th. For the 23rd of the Monday Pops Mr P. R. Dix has arranged epiite a number of attractions. Master Jack Garry is, we believe, a brilliant executant on the violin, | and has established an excellent reputation in the South. Some new cinematographic. lilms, just imported by Mr C. Bloomlield, including an amusing scene, "The Haunted Castle," will be exhibited for the first time. Madame and Mr W. B. Cadzow will again appear, and the trio " Turn on Old Time "• will be rendered by Miss Featon, Mr Cadzow and Mr Tayler. Miss May Duckling, Messrs Thos. Curran and P. j. Blackman are also on the programme, which will be further strengthened by a small but efficient orchestra. The programme will be published to-morrow.

The annual meeting of the Newton Homing Pigeon Club was held last evening. The following officers were elected .---Patron, Lord Ranfurly ; VicePatrons, Messrs J. J. Holland, M.H.R., J. J. Craig, A. Beaver and S. Benjamin ; President, Mr C. Chilcott; Vice-Presidents, Messrs Flicker and Towler; Treasurer, Mr E. J. Thomas ; Secretary, Mr 'C. Trussell, and a committee of eight. It was resolved to hold the first race of this Club's Derby from Huntly, a distance of 65 miles, in October. The following prizes have been offered for the event:—First prize presented by Mr Beaver, pair silver butter knives; second prize, a medal, by Mr Chilcott; third prize, a trophy. Races will be held fortnightly during the season. A champion silver cup has been presented by Messrs P. Hayman and Co. for a race to be flown from Wellington.

The monthly inspection parade of the " A "Battery of Artillery Volunteers was held at the Drill Hall last evening, when there was an excellent muster of 56 all told, under the command of Captain O'Brien. Lieutenant - Colonel Banks officer commanding the district, inspected the Battery and complimented the members of the corps on the good progress they had made in the new artillery drill ■

The Devonport Fire Brigade concert held last night in the Devonport Hall proved a great success. Among the many present were Mr J_. C. Macky (the Mayor of Devonport), and several councillors, and members of town and suburban fire brigades. The excellent programme was contributed, to by Misses Gelston, OberoEthel Cave, Mrsßoylan, Messrs C. Williamson, P. J Blackman, W. Ingham, Pelham. Doyle, H Fountain, A. E. Foster, Alex! Smith and Master Johnston. The acc.ompanmients were well played by Miss Lily Thomson Dimng the evenil •m G J Hill, of the Devonport Torpedo Corps, was presented with a bronze medal and certificate of the Royal Humane Society of Australasia, for saving from drownim*- the daughter of Mr J. C. Spinley, of Devonport, The presentation was" made by the Mayor of Devonport. Three hearty cheers were given for the recipient. The All Star Novelty Company, which has been performing at the City' Hall on Saturday nights for the past six "months to very good houses, announces for to-morrow evening a benefit to Messrs Crawford and Moore, the well-known comedians who are about to make a tour of the goldfields lhe programme will include \ mouth organ competition between Messrs G S Gardner and F Donelly, and Crawford will endeavour to beat the world's lm-h kicking record. °

A meeting of the Onehunga branch of the London Missionary Society was held last mght m the Onehunga Congregation! Church, the Rev. B. Rhodes* actinXS Chairman Interesting addresses were given by the Rev. R. Baron, from Maria! gascar, and the Rev. J. E . Newell a missionary from Samoa. The proceeds SocTety? aUI °f L°ndoQ "MS

The usual fortnightly entertainment of ffi the Burns Club took place last evening _ n g the Masonic Hall, Karangahape Road. M r Wililiam Moncur presided. Ihe following I programme was gone torough :- Overture, | Si*? Angus,; son-s, " Uel Hae _\ane but 1 i Hielan' Bonnets Here and *I m a Gent," g JMrLvlc; il The -arewell to hjs | lste»d," Miss Babe; _ Ihe Marquis X lof Lome's "Wedding,* Miss Mo. W •Ouorrie; "Where Has Scotland Found I":. Per Fame," " John Grumhe,' and "The §| ! Wattle of Stirling Castle,*' Mr Reid; X " Mar«nierite and "I he Banks of Allan | 1 Waler"," Miss Briggs; "The Midship. || Ijjiite " Mr Robertson ; " Annie Laurie," M - Airs Flicker , " Dinah " and " Tommy W 'Atkins," Mr Tom Moncur ; " Logic tf X Buchan," Miss Harvey; "Nero," Miss X Williams; pianoforte solo, "'i* tain beaux," M ! recitation, " The Picket," Mrs Ken*; I reading, "Mrs Mcl*ar.anes Insurance X i policy" Mr Home. Ihe entertainment M I concluded with the singing of " Auld Lang if | Syne.*' j I J 'The annual meeting of Smith and M i Cau'diey's Cricket Club was held last jfj ! eve-Tin-' Satisfactory reports were re* M ! ceived," and judging by the attendance 11 and the interest shown, there is every M 'prospect of a successful year. Officers ' ! were' elected for the ensuing year. ffi j Owino- to the elections and other causes, i i a lecture in St. Patrick's Hall on"Aus- m tria and Austrians," to bo delivered by Mr X i M A. Ferri, was postponed to a date which 11 I will be announced in a future issue. The :>., i pro'Tamme will include an interesting and m .instructive lecture and songs and recita- M I tions by local talent. y An interesting lecture on " The History X lof the Church of England " was given last M inig'ht in the Anglican Schoolroom, One- 1 ! hunga, by the Rev. Canon Hazelden. The |: 'lecture, which was illustrated by a large ~ - \ number of limelight views manipulated by I : the canon, was listened to with marked M ! attention by a crowded audience. The X ! collection was in aid of the fund for the M renovation of St. Peter's Church. Mr Orlando Wells, who has taken the M contract for the repair of the Mangere Bridge, has commenced the work. Should || it be found necessary to close it, due || notice will be given by advertisement in M the Stab. X The report of a rifle can be heard dis- fgf tinetly 5,300 yards away, but the report of 1| George Fowlds' superior clothing, hats, 1 ' shirts, and mercery can be heard all over §| the colony.--(Adt.) m Smith and Caughey have just opened X foiu- cases of white quilts in all sizes, g Very special value.—(Adv..) M You'll wish yon had known George m Fowlds sooner o'nee you learn how beauti- I ful and good his summer suitings are, aud 1 how nice he can make you look.—(Adt.) :.; 50- pairs of pure linen sheets, hem* m stitched and largest size, 21s pair : also, a i large job line in white damask table M covers, os 6d each (pure linen), at Smith X and Caughey's.—(Advt.) £| Wilson, McCullagb and Co. beg to fe announce that in addition to their own jp stock of imported millinery they have M secured the large stock bought for cash in p: London for the late Mrs LL Somerville, \m which is now marked off at low prices and |: ; on view in their show-room. An early I| inspection invited. —(Advt.) r Real' French cambrics—rare goods—for p. shirt blouses at Wilson, McCullagh and _M Co.'s.—(Advt.) . ' | Buyers of drapery goods will do well to fe look through Wilson, McCullagh and Co.'s X stock this season. One of the biggest W'-. selections in the city and cut at the X " finest prices."—(Advt.) E|