EUROPEAN AGRICULTURE 263 



that can be bought at any time and is always negotiable. Such organi- 

 zations serve as an economic saving between borrower and lender. The 

 man in America at the present time who wishes to invest his money in 

 farm mortgages must seek out such loans personally or through an 

 agent. The punctuality with which the interest will be paid and the 

 loan when it falls due will depend upon the personality of the farmer. 

 But such is not the case when the loans are made through a land mort- 

 gage association and the investor instead of lending direct to the farmer 

 buys the bonds of the association; he then knows that his interest will 

 be paid as punctually as on a government bond ; that his security has a 

 market value and can be sold for cash any clay through his bank. The 

 establishment of the land mortgage association and selling its bonds on 

 the open market opens up a field for investment that is now practically 

 closed to a large class of investors. 



One thing to be emphasized in regard to the success of the European 

 systems is the fact that it has been largely due to the direct oversight 

 that the governments have had over them. Without this government 

 relationship they could not have commanded the confidence of the public 

 that they have. It is hopeless to expect an equal degree of success for 

 similar institutions in America unless they are also organized under 

 government control, at least to the extent that the public will have 

 absolute confidence in their solvency. 



