Now, if you will recall with me the points of change and progress made, you will find that the tendency is away from unlimited liability, as originally provided, and now toward a dependence upon capital and reserves solely for protection to the debenture holders. In my judgment we should adopt the following as the basis of our Land Credit Bank: _First_: We should confine the business to loans upon improved agricultural lands. _Second_: We should make the institution strictly coöperative, but with a limited liability to the amount of the paid-up capital. _Third_: Every local association, or primary unit, should be an association of men within a restricted locality and the business should also be confined to the immediate vicinity of the association. _Fourth_: I do not believe that the membership of a primary unit should be less than twenty-five, nor more than fifty. _Fifth_: I think that the capital of a primary unit should not exceed $25,000, and that the shares should be $100 each. No person should own more than two hundred and fifty shares, or 10 per cent of the capital. _Sixth_: All loans made should be recommended by the local association. In case of a loss by the sale of property taken over, one-quarter of such loss should be borne by the primary unit, of local association, making or recommending the loan upon which the loss was made. _Seventh_: All expenses connected with the examination and recommendation of a loan shall be paid by the primary unit, or local association. _Eighth_: The application for a loan should then go to a state organization, which should be created by a union of all the local associations. I suggest a central organization in each state for the purpose of lessening the expenses over the entire state, as the laws affecting real estate in the several states have some peculiarities to those states. _Ninth_: Each state organization should have charge of all the business done in that particular state; the examination and final approval of the security; the examination and approval of the title; the collection of all interest; the payment of all taxes and insurance, and the final repayment of the loan. _Tenth_: The state organization should be a union of all the local associations in any particular state, and should hold one-quarter of the capital of all the local associations as its own for the purpose of carrying on the business of that state. _Eleventh_: All property upon which loans are made should be conveyed absolutely to the state institution where located with a waiver of all rights of foreclosure; but, providing for the advertisement and sale of the property, as if a judgment had been rendered. This is essential to save the cost of foreclosure. _Twelfth_: In case of a loss, as the result of the sale of any real estate taken over, one-quarter of it shall be borne by the state organization.