INSTITUTES FOR RURAL LAND CRICDIT 63 



amount of 85,120,099 mks on urban estate and 3,884 for 18,729,837 mks. 

 on rural land. 



Bavaria. — The Bavarian farmers have in the Bayerische Landwirt- 

 schaftshank (Bavarian Agricultural Bank), a co-operative bank exclusively for 

 real agricultural credit. This bank, on the model of the Prussian Land- 

 schaften and the Saxon Landwirtschajtlicher Kreditverein, was founded at 

 Munich on December 2°'^ ., 1896. On the 27*^ . November, the rules drafted 

 by the Bavarian Board of Agricultiire {Bayerischer Landwirtschaftsrat), 

 had received the approval of Government. In this way the need was 

 met that had been often expressed by the Congresses of Agriculture 

 since 1880, for the formation of a land credit institute in Bavaria, 

 adapted to the special conditions of agriculture there. 



The Bavarian Agricultural Bank is organized somewhat differently 

 from the Prussian Landschaften. It is the only establishment of the kind 

 which is not only constituted after the model of the co-operative societies 

 in public law, but also subject to the law of 1889 regulating such so- 

 cieties. 



Every member on entering the co-operative society must purchase 

 a hundred marks share. If he applies for a loan of more than 5,000 mks., 

 he must buy a share for each additional 5,000 mks. No member may have 

 more than 200 shares. On December 31**., 1912, the number of members 

 was 21,083 and they possessed altogether 42,791 shares. The number of 

 members who had not had recourse to credit was 818 and they possessed 

 1,573 shares. 



Before the foundation of this co-operative society, a Government estab- 

 lishment had been contemplated. But the idea was abandoned later, on 

 consideration of the risk inherent in a costly administration and the fact 

 that State institutes are often characterised by too insufficient commercial 

 activity. The Bank has received considerable assistance from the State. 

 On its foundation, it was granted, in accordance with § 17 of the financial 

 law of June 17*"^ ., 189G, a working capital of 1,000,000 mrks., free of interest. 



It was further granted an advance at 3 % interest amounting at first 

 to 1,000,000 marks and afterwards raised to 4,000,000 mks by law of Jan- 

 uary'- 24''* ., 1898. Up to 1905, it received also an annual amount of 40,000 

 marks as a contribution to its working expenses. It enjoys, besides, 

 certain privileges, amongst which we may mention that the capital of 

 minors may be invested in land bonds and other securities issued by it. 

 A Government commissioner supervises the work of the bank. 



It grants mortgage loans on agricultural or forest land, and loans to 

 communes without special security. The loans on rural land are granted up 

 to the amount of half the value of the land. Farmers, appointed by the l^ank 

 as confidential agents for the commune in which they reside, act as intermed- 

 iaries. Owing to the very small working expenses, and to the fact that the 

 profits are always exclusively invested for the benefit of members, the bank 

 is in a position to grant loans on the most advantageous terms possible in 

 view of the situation of the financial market. At the end of 1912, the 

 mortgage loans amounted to 140,788,864 marks and those granted to 



