THE CREDIT UNIONS OF DENMARK.
In 30 years the credit banks of Denmark lent to farmers 43 millions of money without themselves having one pound of share capital subscribed or any liability. They provided on the one hand a gilt-edged 4 per cent, investment for large or small capitalists, and made possible unparallelled development for every agricultural industry. A few men of good standing, associated, and let it be known that they were prepared, under certain conditions, to lend money to farmers who were suitable applicants. The Union had no share capital nor any guarantee fund, but it had obtained from the Government a .grant of £550 to meet initial expenses and a guarantee of all interest due by the Union to its creditors. This pnyment the Government has not in a single instance been called upon to make. During the 28 years of its existence the Union has made 23,710 loans. When loans to the extent of £25,000 had been approved the Union issued bonds of from £2 15s up to £llO, carrying a dividend of 4 per cent., which were handed to the borrowers, who found an immediate market for them at par, not only in their own country but in all the neighbouring countries. They are in demand as a certain 4 per cent, security. The borrower is liable under a "deed secured upon all his belongings for "repayment of the debt and interest, also for 1 per cent, for a sinking fund which wipes out the loan in 45 years. No loan is granted beyond 50 per cent, of the value of the farmer's holding, and so long as the borrower j fulfils his obligations the loan cannot 'be called in. If he fails to pay his I interest' the 'Union' may seize the property. This has happened in only six cases out of 23,710 loans and the Union has never suffered a loss. Generally 1 per cent, is paid towards a reserve fund, which now amounts to £60,000, which belongs to the members, and. is now used in reducing shares to borrowers. This Union consists of small landholders and only lends to such,
Permanent link to this item
Hononga pūmau ki tēnei tūemi
https://paperspast.natlib.govt.nz/newspapers/KCC19100611.2.22
Bibliographic details
Ngā taipitopito pukapuka
King Country Chronicle, Volume IV, Issue 267, 11 June 1910, Page 5
Word count
Tapeke kupu
358THE CREDIT UNIONS OF DENMARK. King Country Chronicle, Volume IV, Issue 267, 11 June 1910, Page 5
Using this item
Te whakamahi i tēnei tūemi
Waitomo Investments is the copyright owner for the King Country Chronicle. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Waitomo Investments. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in