History, Present Situation and Problems of the Village Credit System (1895-1935)

This article by Fruin from 1933 gives an overview of the history and problems of the village credit system, an overview with lessons learned being implemented continuously and new problems arising all the time. The reason for translating an article from 1933 were:

• To make an historic document available to a wider microfinance and social banking audience;
• To show that microfinance and social (welfare) banking activities are not something of the recent past;
• To prove that lessons from the past that may be relevant today

The article looks at:

• The history and present situation in terms of village credit cooperatives;
• The criticism on the village credit system;
• The advantages and problems with the village credit system.

The article concludes that the significance of a well working, socially directed popular credit system for the cooperative movement; to be established by the creation of a General Popular Credit Bank, should not be underestimated as is evident from the foregoing.