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

CO OPERATIVE MOVEMENT IN GERMANY Part 1

• The birth place of  Co operative credit movement in the world - Germany

• The birth place of co - operative land mortgage bank - Germany 

• The birth place of co - operative Urban bank - Germany

• NEUHEIMAT is a group of persons joined together on no profit basis for acquisition of houses in Germany 

• The first consumer co operative society in Germany was ERMUNTERUNG

• Co operative insurance in Germany known as ALTE-VOLKSFURSORAGE

• Workers association in Germany known as HOMESTEADS

• DESWOS is the association for social housing in Germany 

• Investment banks are first originated in - Germany              

• The Prussian central co operative bank in Germany established by was Dr Hass           

                  F W Reiffesen

• F W Reiffesen is the father of co operative movement in Gemany

• F W Reiffesen Born at ham in Germany

• F W Reiffesen Born on 30th March 1818

• FW Reiffesen known as apostle of co-operation

• The motto of All for Each and Each for All was first used by F W Reiffesen

• Poor people committee organized by Reiffesen 

• Reiffesen organised credit society with unlimited liability in rural area 

• Reiffesen union was started in the year 1877 

• F W Reiffesen started his first Credit Society at An Houssen

• Village society  was the first society started by Reiffesen 

• F W Reiffesen started village society in the year 1862

• Heddesdorf loan society was considered as the first co operative of Reiffesen tradition

• Reiffesen founded the Heddesdorf society in1864

• In Reiffesen type societies the value of share is very low

• Major portion of the profit was transferred to Reserve fund in Reiffesen societies 

• Reiffesen gave more importants to moral and material well being of members. 

• The object of a Reiffesen bank was economic emancipation of farmers 

• The area of operation of the Reiffesen bank was limited 

• The membership of Reiffesen bank was limited 

• Deposits accepted from members and non members in Reiffesen Societies 

• Interest paid by Reiffesen bank was 4% - 5%

• The only paid servant in Reiffesen  society was the Accountant