54 INFORMATION RElvA-TING TO CRKDIT 



a considerable development is observed. In 1915 the society placed bonds 

 and letters of credit for 5,714,300 marks, in 1916 for 6,642,700 marks. To- 

 wards the end of the latter year these transactions were particularly numer- 

 ous, and the bonds and letters of credit intended for sale were sometimes 

 found to be exhausted. Those available on 31 December 1916 represented only 

 287,900 marks, as against 539,475 marks in 1915 and 907,175 marks in 1914. 

 During 1916 the value of this paper in circulation increased by a round sum 

 of a million marks, passing from 371,231,375 to 372,256,250 marks. This 

 is due to the large new issues of bonds and letters of credit by the Landwirt- 

 schaftliche Kreditverein, which amounted during the year to more than five 

 and a quarter millions. These bills are repayable when mature at their 

 nominal value and generally bring considerable profits to their holders 

 while current. Such of them as remain to be amortized are in great demand 

 by the public, as is shown by the figures regarding the free commerce in 

 bills. It has been possible thus to lend anew 7,855,405 marks. Repay- 

 ments amounting to 1,960,032 marks being deducted, the sum of the loans 

 constitiTting the society's credit was 439,564,904 marks at the end of 1915, 

 and it rose before the end of 1916 to 445,460,278 marks. During 1916 the 

 forced sale by auction of fourteen properties pledged to the Landwirtschaft- 

 liche Kreditverein was ordered and seven were actually sold. Two were 

 put up for auction on the Kreditverein' s demand in consequehce of dues to 

 be paid. The seven properties sold by auction have an area of 165.1530 

 hectares (i) corresponding to 4,631.36 taxable units. If the sums thus 

 granted by the Kreditverein- be compared, from the point of view of the 

 mortgage, they are seen to be 35.79 of the legal costs and 52.64 per cent, of 

 the amount obtained at the last auction. In 1916 as in 1915 the Kredit- 

 verein was obliged to acquire a property to cover the amount of its credit. 

 The properties sold by an amicable agreement extend over 3,155.40 hectares 

 and are burdened as forming 93,159 taxable units. Their value has been 

 certainly determined by means of an estimate, in the case of eleven of them 

 by taking 40 marks as the average for a unit liable to the land tax. Such 

 value is 6,605,339 marks. The loans made by the Kreditverein amounted 

 to 2,876,400 marks, a sum covered by mortgages for 3,133,216 marks. If 

 the amount of the loans made by the Kreditverein be compared with the 

 value of the properties, determined by the double method already indicated, 

 from the point of view of mortgages, it is found to be 47.43 per cent, of 

 such value. 



Under dues the sum of 450,574 marks occurs in the balance-sheet. It 

 comprises later recoveries, amounting however only to, 4,499 marks and 

 emanating largely- from debtors under arms, and the dues falling due in 

 the first quarter of 1917 which amounted to 446,075 marks. At the end of 

 January 1917 the total sum of dues owed in 1916 was 19,447,067 marks. 

 Out of the 19,207,031 marks of dues owed in 1915 only 54,226 marks or 



(1) I hectare = 2.47 acres. 



