PROVIDING THE FUNDS 169 



bank which is administered by their own neighbours and nominees, 

 whom they can speak to and whom they know that they can trust. 



In respect of agriculture, the method adopted of having a large 

 elastic fund of liability to draw upon and to pledge and pledge 

 again, as more money comes to be wanted, possesses several distinct 

 advantages. In the first place, it serves practically as a cash credit 

 open to the bank, under which only as much money needs to be 

 raised and paid interest upon as is actually needed at the time, 

 leaving, therefore, only a very small margin of money unemployed 

 in the till. In the second place, it enables the bank to grant loans 

 for long, even very long pterins, which other banks can do only 

 sparingly. The principle adopted is, that no money shall be granted 

 except for fully approved purposes, and in the case of such only 

 with adequate, by preference personal, security given ; but that for 

 an approved purpose as much money shall be advanced as will 

 fully satisfy that want and for as long as will suffice to enable the 

 loan to repay itself out of its proceeds. 



However, the object which mainly inspired RaifEeisen and 

 prompted his enterprise was, as observed, that of assisting rural 

 poor — of whom there were an untold number, and who for want of 

 money suffered very bitter privations. He was not thinking of 

 agricultural cultivators alone. He would come to the rescue of 

 any one, the very " beggar on the dunghill," provided that he 

 was found to be honest and to have a paying enterprise on hand. 

 Accordingly, there could for him be no shares. Raiffeisen did not 

 even approve of entrance fees. There must, if he could have his 

 way, be no tax whatever laid upon the incoming member's purse. 

 It was his character that would come into account. In practice, a 

 small entrance fee has, however, been found decidedly useful, and 

 even small shares — such as the German Government has in its 

 country insisted upon seeing issued — will not stand in the way of 

 the acceptance of the system. 



Liability being unlimited, the safeguards already enumerated 

 have to be insisted upon with particular strictness. The district 

 to be worked in must be small, consisting by preference of only 

 one parish, so that there may be effective touch among members, 

 and every one may be able, without trouble or offence, to observe 

 how others are going on. Special care must be exercised in the 

 election of members. Now here it comes to be seen how unlimited 

 liability, which members periodically limit themselves by formal 

 resolution, approves itself as an effective safeguard, instead of acting 

 as a threatening danger. A member kavmg only a limited stake 



