The Origins of Mutualist Finance

This chapter attempts to offer a clearer look at the historical roots of the founding of mutualist finance. Without denying that the various forms of financial mutualism may have legal and organizational roots in ancient times, the author considers what, for contemporary mutualist banks, may constitute the soul. In its first part, the document presents the individual constructions that existed in the eighteenth and nineteenth centuries, in a context in which economic development and the industrial revolution banished the rules and standards of the former society. It refers to Utopian socialisms as opposed to the scientific solutions proposed for a new social organization and to the new solidarism according to Léon Bourgeois. Christian sources are also called to mind with social Christianity (Protestant) and social Catholicism until the birth of the social doctrine of the Church. This frenzy of ideas as well as the confrontation with reality led to the birth, in Germany, of the first experiments with alternative finance. This is the subject of the second part of this chapter, which then develops the bank mutualism created by the founding fathers, F.W. Raiffeisen and H. Schulze-Delitzsch. The historical description of the creation of mutualist banks brings up two major problems when talking about the “other finance”: the interest and activity of the bank. Is an ethical finance capable of proposing a credible alternative? This is a question that needs to be answered in the light of history. This chapter attempts, more than 150 years after the fact, to demonstrate the ponderous presence of the question and the permanence of the founding ideas in order to comprehend the facts and propose ideas for analysis and construction of an “other finance.”