PROVIDING THE FUNDS 173 



them by gifts, as so many of our charities do ; it helps them in a 

 manner which strengthens their fibre and stimulates their self- 

 reliance. In other words, it makes them work out their own salvation 

 for themselves. To have discovered a way of doing this is a highly 

 meritorious achievement, for which we have to thank RaifEeisen. 



However, in quarters where the other system is called for, the 

 RaifEeisen system would be altogether out of place. It will, in any 

 case, answer only in country districts, where the conditions for its 

 satisfactory working exist. For large effects and larger communi- 

 ties the Luzzatti system — which for countries outside Germany and 

 Austria I decidedly prefer to its intrinsically equally excellent, but 

 to ourselves more cumbrous parent, the Schulze-Delitzsch system — 

 is, without doubt, the one to choose. And it works admirably for 

 the ordinary purposes of agriculture also, and generally for rural 

 purposes. 



I cannot but hold that for our rural economy the adoption of 

 co-operative credit would be a most substantial gain. To establish 

 small holdings on a large scale without it appears to me absolutely 

 hopeless, if there is to be success. Our authorities have been tenta- 

 tively reconnoitring the ground with attempts of State aid. That 

 may be in part because something pretending to be " co-operative 

 banking " has been tried in not only a half-hearted, but also an 

 altogether bungling way in this country, by people who doubtless 

 had plenty of good will, but who did not understand the principles, 

 and who have accordingly quite naturally failed. For the work of 

 these bungling experiments, State aid has, as already observed, 

 likewise been tried, and has not fared over-well. State aid has 

 been tried elsewhere, and by the side of the results of genuine 

 co-operative credit its effects cut but a poor figure. State aid never 

 could produce the immense sums which will be required for credit 

 to agriculture, and to rural economy in general, which co-operative 

 credit, on the other hand, has throughout shown that it can easily 

 raise. And State aid could never produce the qualities which 

 genuine co-operation never fails to bring into being — self-reliance, 

 better business ability, careful and trustworthy reckoning up of the 

 chances of new enterprises before they are entered upon ; and to 

 secure additions to production. A mere lean-to, such as State aid 

 essentially and necessarily only is, is a useful stopgap expedient. But 

 a solid house, such as co-operation sets up, is decidedly worth more. 



We want credit. That is generally admitted. The large farmer 

 wants it. It is not every one among his class that can make sure 

 that he will at all times obtain all that he needs from a joint 



