Their founder, F. W. Raiffeisen, Burgomeister of a small village in Westphalia, Prussia, wanted to rescue the poor peasants of his and other districts from the clutches of the usurers, into whose hands they had fallen and by whom they were being exploited in a most shameful manner. Since it was loans that these people needed and since their cash resources were always very low and in many cases nil, he felt that to require, as a condition of membership, entrance fees and the purchase of one or more shares of stock, however small, would be fatal to the success of his plans. He also firmly believed that in the integrity, industry, frugality, and agricultural skill of these people was the basis for sound credit and that cooperation was a means by which these elements of sound credit could be made available and attractive on the money market. At the beginning, therefore, no entrance fees or share subscriptions were required. Later Prussian law made share subscriptions compulsory and they were, of course, introduced, but they were made so low, and the acquisition of the money for their purchase so easy, that they have not been a serious obstacle. From the beginning Raiffeisen invited to membership in his societies the well-to-do and substantial people as well as peasants. Of course these people did not require the society for the satisfaction of their own credit needs, but Raiffeisen saw that they would greatly strengthen the credit of the societies and he was able to appeal to them on philanthropic grounds. This class of people have a leading part in the administration of the societies of which they are members and have contributed greatly to their success. At the outset the Raiffeisen societies had to rely chiefly on borrowing for the acquisition of the capital needed, but with time and success savings deposits, surplus funds accumulated out of profits, and lastly the proceeds of the sale of shares have played an increasing role. At the present time many societies are not obliged to borrow at all, and not a few have surplus funds which are placed at the disposition of other societies which are still obliged to borrow. Like the Schulze-Delitzsch societies the Raiffeisen associations have federated. At present there are thirteen so-called unions, and at the head of all is a central bank with head office at Berlin and branches at Koenigsberg, Danzig, Breslau, Cassel, Frankfurt, Coblenz, Brunzwick, Strassburg, Nuremberg, Posen, and Ludwigshafen. The central bank is a joint-stock company, organized on the principle of limited liability, the stock of which is owned by the local societies. It formerly had close relations with the Imperial Bank, but is now associated with the so-called Centralgenossenschaftskassa, endowed by the state of Prussia, in such a way that advances and discounts are extended to it on favorable terms.