WORKING CREDIT FOR FARMERS. 255 



and easy credit, and who might have difficulty in raising 

 a sufficient capital by shares. 



Wherever other conditions prevail — therefore mainly 

 among medium and larger farmers, but not necessarily 

 among them only — where there is less straitness of ready 

 cash, and the levying of shares presents no insuperable 

 difficult}^ where, moreover, there is greater familiarity 

 with business, and probably a brisker flow of transactions, 

 evidently a different kind of institution is called for, which 

 will still have to be co-operative — that is, working without 

 a profit, only to render a service, under the management 

 of its own members. The formation and working of such 

 a society, of members and for members only, offers no diffi- 

 culty. In a society of this description, as M. Luzzatti 

 has justly urged, unlimited liability is in nowise called 

 for. Rather does it there become a danger, as even its 

 stoutest advocate, Schulze Delitzsch, has admitted. The 

 number of members may here be larger, the working district 

 wider, the amount of business much more considerable. 

 Touch will be less close, and the power of supervision more 

 feeble. Liability limited to the value of the share subscribed 

 alone will be quite sufficient. Such a bank, if it confines 

 itself to its own distinctive work — which means avoidance 

 of competition with ordinary banks — will be able to render 

 very useful services indeed. It has been an invaluable 

 support to Agriculture, alike in Germany and in Italy. It 

 cannot do all the work that ordinary banks accomplish ; but 

 whatever it does — once more through its own members, 

 who are likely to be quite equal to the not very exacting 

 task — it will be able to do in a better way, because it is 

 familiar with the persons to be dealt with and with their 

 condition, and can watch them. Quite the same eclecticism 

 in the election of members, and surveillance of the employ- 

 ment of the loan as in the other form of society will not be 

 called for. But care will still have to be taken that no 

 black sheep are admitted and that the borrowing taking 

 place is for reproductive or economising purposes only. 

 Our legislation makes it easy for such banks to be formed 

 under the Industrial and Provident Societies Acts. And it 



