248 THE FUTURE OF OUR AGRICULTURE. 



different purpose, and where none of us in this country 

 would think of, or be wise in, employing it. That is because 

 such banks were formed before limited liability was recog- 

 nised at law — which in Germany took place only in 1889 ; 

 and, having been so employed, it has been found extremely 

 serviceable for raising funds more freely. (In Germany, as 

 in the United States also, it is quite common to fix the 

 limit of limited liability at a higher point, a multiple, 

 of the value of the share paid up, as intended additional 

 security for the lender ? Therefore excess liability, beyond 

 the value of the share, comes to Germans with a familiar 

 face. Hence many Germans and some Austrians have 

 retained a strong preference for unlimited liability. And it 

 may be owned that as a rule their co-operative banks with 

 unlimited liability number among the strongest, doing the 

 best business — just for this reason, that unlimited liability 

 imposes upon managers the greatest vigilance, the most 

 careful weighing of probabilities and testing of sureties, and 

 the greatest strictness in insistence upon observance of rules. 

 However, in agricultural credit societies the matter wears 

 an entirely different aspect. And in truth their " unlimited 

 liability "is no more unlimited than is Lord Denman's own 

 engagement to answer with all that he possesses for the 

 price of a motor-car, which he may buy, or an estate, or a 

 horse, or a dinner. He answers for what he buys with all 

 that he is worth ; but he wisely limits such liability himself 

 by limiting its application. And that is precisely what the 

 humble agricultural banks — his supposed compeers of the 

 " City of Glasgow Bank " — do, being composed, as they 

 designedly are, of only a small number of members, because 

 it is essential that there should be very close touch among 

 them. They have no large estates, no holdings in Consols 

 or the like to pledge, which might be foreclosed upon. But 

 they all of them possess something that is as dear to them- 

 selves as are his Consols to the rich man, and his manor to 

 the squire, and which they will take a good deal of trouble 

 to prevent seeing taken from them. The danger of this 

 happening sharpens their wits, whets their vigilance, and 

 imparts keenness to their vision. 



