52 GERMANY - CREDIT 



under form of loans repayable on demand; but, in recent years, the savings 

 banks have also contributed to extend the use of loans redeemable in in- 

 stalments, better answering the conditions and requirements of agri- 

 culture. The amount increased from 358,000,000 mks. in 1904 to 

 689,000,000 mks. in 191 2, so that the proportion, in comparison with 

 the total amount of the mortgage loans on rural holdings granted by the 

 savings banks increased from 19.96 % to 27.33 % in the period. But the 

 possibilitj' of realising still further progress in this way is to some extent 

 limited by the fact that the savdngs banks must at every moment be in a 

 position to pay, for the very nature of the deposits they accept prevents 

 their investing large sums in such a way as would hinder their being again 

 available at a comparatively short notice. 



In Germany the niajority of the mortgage banks have ouly granted a 

 small proportion of loans on rural holdings. As the insurance societies do 

 even in a larger degree, they above all limit their mortgage credit operations 

 to urban holdings. According to a report published in the number of the 

 Deutscher Okonomist for September 27*'*., 1913 (page 630), the total amount 

 of the mortgages granted by the 38 German mortgage banks at the end 

 of 1912 was 11,286,702,000 marks. Out of this, only 751,720.000 marks 

 represented rural mortgages. More than two thirds of this was lent by 

 two of these h2inks>,th.ePreussische Zentrai-Bodenkredit-AMienfiesellschaft of 

 Berlin, (Central Prussian I^and Credit Society, Limited by Shares) which 

 thus lent 273,802,000 marks and the Bayerische Hypotheken- und Wechsel- 

 hank of Munich (Bavarian Mortgage and Exchange Bank), which had lent 

 246,209,000 mks. These are the two largest mortgage credit establish- 

 ments of Germany. In addition, three smaller institutes of South Germany 

 had granted mortgage loans on rural land for a total amount of 125,508,000 

 mks. Five institutes absolutely do no rural mortgage business and 

 the remaining 28, all together lent the comparatively small amount of 

 86,201,000 mks. on the securit}^ of rural mortgages. Amongst all these 

 banks, there are only three in which the credits on rural estate represent 

 more than one fifth of the total credits granted on mortgage : that is 33.3% 

 in the Preussische Zentral-Bodenkredit-Aktien^eselhchaft, 21.8% in the Baye- 

 rische Hypotheken-imd Wechselhank and 26.7% (31.888,000) in the Hessische 

 Landes-Hypothekenhank of Darmstadt (i) (Mortgage Bank of the Grand 

 Duchy of Hesse). These Banks render great services to agricultural credit, 

 as they contribute to extend the only system that is adapted to agriculture, 

 that of loans not repa^'able on demand, but by means of regular fixed 

 instalments. 



In some provinces and some states where there are no Landschafts, 

 their place is filled b}^ State or provincial institutes. We shall speak of 

 them in another article at an earlv date. 



(i) The Hessiche Landes-Hypothckenbank, founded in 1902, has indeed the form of a society 

 limited by shares, but the capital was entirely paid upby the State, the communes and the pub- 

 lic savings banks, so that, in spite of its form, it has the character of a Government instit- 

 ution. 



