Part 111: Credit 



GERMANY. 



RECENT DEVELOPMENT OF THE CO-OPERATI\Ti INSTITUTES 

 OF LAND CREDIT FOR RURAL HOLDINGS. 



Among the many institutes of every kind in Germany that engage in 

 land credit business, the co- operative organizations known under the name 

 of Landschaften are the most important. Above all in Prussia, where the five 

 oldest Landschaften have been working for more than 125 3'ears, do these 

 institutes provide a very considerable and continuall}- increasing portion 

 of the real credit required in agriculture. 



In the first number of this Bulletin (September 30th., 1910), a short 

 article was published (i) dealing with the origin and development of the Land- 

 schaften. In the present article it is our intention to complete the inform- 

 ation alread3'' furnished on the subject, in accordance with the most recent 

 statistics. In addition we shall endeavour to show, Avithin the limits the 

 information at our disposal permit, the importance of the Landschaften 

 and similar credit institutes for small and medium sized farms. 



Let us first of all say a few words as to the other sources of credit to 

 be considered in the case of rural holdings. Large advances are made on 

 the security of rural holdings, not only by the Landschaften and the 

 mortgage banks, but also by savings banks and private capitalists, for 

 first mortgages on rural and urban holdings constitute an excellent in- 

 vestment of capital, thanks to the important guarantee provided by the 

 cadastral and mortgage registration systems in force in Germany. 



Of the total amount of capital invested by the Savings Banks the foll- 

 owing amounts were invested in rural mortgages: 1,246,000,000 mks. or 

 25.4 % in 1896 ; 1,792,000,000 mks. or 22 % in 1904 and 2,464,000,000 mks. 

 or 19 % in 1912. The largest proportion of these credits is granted 



(i) This article was republished in the first volume of the Monoi;raphs on Agricultural Co- 

 operation in Various Countries. Also in the number of this Bulletin for November, 1913, there 

 appeared an account of the work of the East Prussian I<andschaft. 



