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Otago Daily Times, Issue 19505, 13 June 1925, Page 23

CO-OPERATIVE AND AGRICULTURAL BANKS. XO THE EDITOR. Sni,—l notice that at the annual meeting of the Otago branch of the Farmers’ Union Mr Leary (chairman) said that one of the strongest trusts was the associated banks and that 'bank charges wore in many cases exorbitant. The co-operative concerns and farmers in Denmark no doubt thought the same at one time, so they decided to have their own bank. A London cable of Juno 2 reports: “The Central News Agency’s Copenhagen correspondent states that the Co-operative Bank, which the Co-operative Agricultural Association established some years ago, is closing down owing to its having lost capital and being unable to raise new money.” There has been a great outcry during the last few years, chiefly by farmers, for the formation of agricultural banks, and Denmark is always quoted as an example of tho successful working of these concerns. In view of the above cable, some particulars about the bank concerned will no doubt bo of interest. This bank started business in 1914 with 236' co-operative societies and credit associations as members or shareholders. Tho objects of the bank wore:—“To obtain higher prices for bank drafts in sterling or marks, to grant cheaper loans and allow higher interest on deposits, but primarily be ready to support any reasonable cooperative scheme submitted to it.” At the time the loading banks in Copenhagen pointed out how dangerous it might be to the nation if all hanking operations connected with the greatest industry of the country were transferred to a single bank. However, it went ahead, and in 1915 its turnover was £50,000,000, and in 1916, when it had over 30 branches, its turnover was £200,000,000. In 1917 it had 732 cooperative societies and credit associations as members, but, notwithstanding tho support of all these societies, wo now hoar that it has to close down owing to its having lost capital and being unable to raise ’new money. Apparently these 7c2 cc-cperativo societies arc convinced that there is nothing to be gained by cooperative banking, and are quite .satisfied to revert to doing their business with the ordinary trading hanks. If with the co-operation that is in existence in Denmark they arc unable to make a success of u bank of this nature, what prospects would similiar institutions have in Kew’ Zealand whore co-oporation a,s known in Denmark is practically non-existent. —I am, etc G. M. Juno 8.