The Lost Code

Savings

Alphonse Desjardins wanted to encourage French Canadians to get into the habit of saving. At a caisse populaire, members could regularly deposit small sums and thereby build personal capital. All members' shares, investment earnings, and savings were used as capital by the caisse. This capital was then loaned with interest to other members. From these loans, the caisse earned profits, which added to its capital. It also paid out a share of these profits in dividends to members, increasing their personal capital.