The Bulletin. 85 



The real estate bonds issued by the Credit Foncier have no fixed maturity, 

 but are called for payment by lot. Each payment of bonds must be of such an 

 amount that the bonds remaining in circulation will not exceed the balance of 

 the principal loaned upon the hypothecated loans. If the Government ap- 

 proves, there can be added to the bonds called for payment certain prizes and 

 premiums. The funds received from the usual amortization or anticipated 

 payments must be used to amortize or redeem bonds, or to make new loans. 

 In general, the bonds bear 3 per cent on the nominal capital, and the cost of 

 the loans to the company, including interest and amortization, is about .3.60 

 per cent, which places them on a par with municipal bonds. At the present 

 time the company is redeeming bonds to the amount of about 30.000,000 francs 

 per year, but the amount of redemptions can be increased if it becomes neces- 

 sary in order to keep the balance between the bonds and loans. The bonds are 

 sold by public subscription. About every three years the company issues 

 bonds sufficient to yield from 300,000,000 to 3.50,000,000 francs. The bonds are 

 subscribed for by people of small means and usually remain in their hands; 

 consequently the quotations of the bonds show little fluctuation. The company 

 always keeps a few bonds on hand for sale, but the bulk of them are disposed 

 of by public subscription. 



It is not necessary for us here to inaugurate a new and untried scheme of 

 finance to enable farmers of the United States to borrow at low rates and for 

 long periods. We can profit by the long and successful experience of other 

 countries. We can take the French and German models and revamp them to 

 harmonize with conditions in this country. The principles that underlie the 

 mortgage-loan organizations in France and Germany are familiar to us here, 

 and we know that they are economically sound. If those countries could suc- 

 cessfully initiate, can we not adopt? 



There are several conditions that must be observed if organizations for the 

 loaning of funds to landowners in this country are to be successful. The cor- 

 porations or associations must have a large capital. They must be established 

 for the single purpose of loaning money to landowners at low rates and for as 

 long periods as possible. There should be no profit to promoters in the organi- 

 zation of such corporations, and the return to the stockholders must be kept 

 within very reasonable limits. In other words, the borrowers and not the 

 stockholders should be the chief beneficiaries of the success of the undertaking. 

 The active assistance and cooperation of the State or Nation must be obtained. 

 The mortgages held by the company should be exempt from taxation. Special 

 laws would be needed and the provision made for thorough examination by 

 State or National authorities, or both. It might be wise to have some of the 

 executive officers receive their appointment from the State or Nation. 



Time will not permit me to discuss other agricultural societies of continental 

 Europe. I trust that we will all give this important subject the thought it 

 deserves. 



THE COUNTEY SCHOOL. 



The country school is to be a large factor in the development of country life 

 and one of tlie chief agencies for keeping the youth on the farm. If we wish 

 to keep the boys and girls on the farm we must not only make it attractive and 

 remunerative, "but we must interest them in their work. This can be done by 

 making that work intelligent. Are not our text-books filled with interest and 

 discount, and are these not largely unadjusted to country life? Are not the 

 children to make their living out of the soil, and from the animals they must 

 raise and use, from the plants they must cultivate and the forests they must 

 preserve? Has not the country school held apart from these essentials and 

 stuffed the children with antiquated formulas and useless rules? Have we 

 taught the varied resources and exhaustless charms of our great State? The 

 great majority of our children leave school before the age of fifteen with 

 little education of any kind, and no training for real life. If the rural school 

 is to accomplish what we expect of it, it must not be a thing apart from the 

 life of the people. We must take the life and work of the people into the 

 school and carry the teaching and influence of the school into the life of the 

 people. The practical work of the farm and home must go into the school, 

 and the thought and knowledge of the school must go onto the farm and into 



