FUNDA^rENTAL RULKS OF COOPIOllATIOX. 217 



satisfy other claims against it. Most states, therefore, have 

 insolvency laws whereby a trader unable to pay his debts at 

 maturity, may be compelled to surrender his property and 

 business to be administered for the benefit of all his creditors. 

 Cooperative societies engaged in trade would be subject to 

 these laws, and the object of this reference to them is to 

 impress on those proposing to cooperate the vital necessity of 

 maintaining credit, by promptly meeting all obligations when 

 due. As already stated, all permanent debt is dangerous to 

 cooperative societies, but if unfortunately debt be incurred, 

 provision must always be carefully made in advance for 

 prompt payment. 



