LAND BANKS. 
37 
tion established in 1609 in Amsterdam. A number 
of other creations of longer or shorter existence 
followed. Many projects were worked out, dis 
cussed and promoted, but not until 1765 was an 
edict issued in Berlin, promulgating the erection 
of the Koenigliche Giro & Len Banco, and at the 
same time a similar institution started business 
in Breslau. It does not interest us for the present 
that the activity of these banks, which, as note 
issuing and loan institutions, were intended to 
assist trade and commerce, was disappointing, 
owing to faulty organisation and mismanagement. 
Land Banks. 
In the meantime, the necessity of broadening 
the basis of credit for landed properties was more 
and more recognised, and it is due to the initiative 
of Frederick the Great that Land Institutions— 
as we shall call for brevity’s sake these Land 
Mortgage Credit Associations—were organised on 
a plan suggested by a Berlin merchant named 
Biihring, the underlying principle of which was to 
replace a single mortgage by mortgage obligations. 
Such mortgage obligations were well secured, 
inasmuch as the whole provincial union was 
liable for the issue. Furthermore, being bearer 
securities, they were more easily realisable. 
However, this new institution was founded only