[190]Q. When were the first of your co-operative societies organised?
A. In 1848. They were organised on a voluntary basis and for philanthropic purposes. They developed very rapidly. The first form which developed was for the purchase of means of subsistence, such as sugar, coffee, grain, wine, cigars, etc. Then they bought agricultural machinery, threshing machines, etc., which they would rent to small farmers in the country who could not purchase such machinery. They also formed societies to build houses for peasants and working people. There might be six or seven with different purposes. Later on Schulze-Delitzsch came to the conclusion that it would serve working people and small tradesmen to have co-operative societies founded simply for the purpose of extending credit to them. That was the last development in the system.
Q. How many kinds of co-operative societies are there in Germany?
A. It is very difficult to classify them. The Raiffeisen societies are confined to Prussia. There are other organisations in Saxony, Bavaria, and different States in Germany.
Q. The attitude of the Reichsbank is the same toward them as toward any other bank?
A. Yes; and their bills are frequently offered and taken by the Reichsbank as from other institutions.
Q. Do they carry their reserve with the Reichsbank or with the Dresdner Bank?
A. Principally with the Dresdner Bank, because they get interest upon it.
Q. Do they pay interest on deposits?