38 
LAND BANKS. 
in order to afford credit facilities to feudal land 
owners. The basis for credit to ordinary peasants 
and farmers only became established at the 
beginning of the nineteenth century with the 
elimination of serfdom. In 1769 the Silesian 
Land Institute was established as the first one, 
followed by the Kur- & Neumarkische Institution 
in 1777, the Pomeranian in 1781, the West Prussian 
in 1787, etc. The legal and financial status of 
these institutions is very complicated, and many 
alterations in their constitution have taken place 
in the course of time. Still, they enjoyed great 
confidence amongst the public, owing to the several 
and joint liability of the estates, no matter whether 
they had themselves issued debentures or not. 
Many more were established in the ninenteenth 
century and altogether there are now in existence 
17 in Prussia and 3 outside. This joint and several 
liability is a guarantee that the loan regulations are 
strictly observed and particularly that the value of 
the mortgaged properties far exceeds the advances 
granted. Capital and interest are further secured 
by a fund accumulated from contributions by 
property owners belonging to the union. The 
unions themselves are under permanent super 
vision of the State Government, which has also 
power to appoint, at discretion, special agents in 
order to look into the affairs of any institution.