1300 New York State Agkicultueal Society 



triple liability, might be desirable. As the cooperative societies 

 prospered, accumulated a surplus, and leagued themselves together 

 into district and central associations the arguments for unlimited 

 liabilities would grow weaker. While I believe that the principle 

 of limited liability is better adapted to American conditions, than 

 that of unlimited liability, there are doubtless some communities 

 in which the latter would be preferable, and I believe it would be 

 a mistake to lay down any rigid rule that would prevent co- 

 operators from adopting unlimited liability when they thought it 

 desirable. 



The conclusion may be summarized in a few words. Fanning 

 is he only important line of business in America to-day, the 

 operations of which are not financed extensively by means of 

 credit. The conseiTative use of credit for productive purposes 

 renders a given amount of capital manifoldly efficient. Efficiency 

 is the watchword of the twentieth century business. The progres- 

 sive farmer will resort to credit to a greater extent in the future 

 than he has in the past. Much of this credit may be secured from 

 existing banks ; and bankers will more and more cater to the trade 

 of farmers. In manv sections of the countrv, however, credit 

 facilities for farmers will prove altogether inadequate; in other 

 sections the fanner will be unduly exploited by high interest rates 

 and commisions. He has it in his power to provide credit facilities 

 for himself when those available are inadequate, and to prevent 

 extortionate rates when such rates are charged. He may adopt the 

 simple expedient Avhich has stood the test of a half a century in 

 Europe, of capitalizing his own industry and honesty in the foun- 

 dation of cooperative credit banks. He may accumulate the 

 needed funds through his own savings, and through the pledge of 

 that high type of security the good name of a neighborhood group 

 of honest and thrifty farmers. In doing so he slinuld not forget 

 that the cooperative agricultural l)aiik is a new })laiit for American 

 soil; that the seeds should be carefully selected, the best soil 

 chosen, and the first crop should be small and well cultivated, if 

 good seed is to be availalde foi- tlic I'lilure. The first crop should 

 Mot be raised in a government hothouse. 



The meeting was then adjourned. 



