CO OPERATIVE MOVEMENT IN GERMANY Part 2

Herman Schulze

• Herman Schulze born in 1808

• Founder of urban co operative bank Herman Schulze

• Schulze bank are also called Popular Bank

• Founder of shoe makers co operative society in Germany Herman Schulze

• The book Principles of Banking written by Herman Schulze

• Paid management was the characteristics of Schulze societies 

• Dr Ben Hardi was the companion of Schulze in organizing friendly societies 

• Liability of schulze bank - Limited liability

• Schulze founded the first credit association in 1850

• Herman Schulze started the first loan society in 1850 at Delitzch

• The rate of dividend was high in schulze type of societies 

• In the Schulze bank the personal contact between the members was not possible 

• The reserve fund of Schulze bank is maintained by transferring 15% - 20% of their annual profit 

• The interest for loans granted in lumpsum varied from 5%-6% in schulze bank

• The dividend rate paid by schulze bank was 10%

• The schulze bank was organized on a democratic basis 

• There was very close supervision for the use of loan in schulze bank