64 



GERMANY - CREDIT 



communes to 14,936,500 marks. Of the amounts lent on mortgage, 85,270,264 

 marks were lent at 3 ^/^ % and 55,518,600 mks. at 4 14 %• 



These figures give the Bayerische Landwirtschaftshank the second rank 

 among the Bavarian mortgage banks. 



It answers the conditions of lauded property in the kingdom per- 

 fectly, for small and medium sized farms of from 2 to 10 ha. and from 10 to 

 50 ha. are most numerous there and cover most of the cultivated area. It 

 is above all a credit institute for small and medium sized farms. Of the 

 27,165 agricultural loans granted by it since its foundation up to the end of 

 1912 for an amount of 175,058,800 marks, 26,111 or 96. 16 % for 131,868,400 

 mks. or 75.35 % of the amount lent, were for less than 20,000 mks ; 864 

 for 25,717,800 mks. for from 20,000 to 50,000 mks.; and only 170, for 

 17,472,600 mks., were for more than 50,000 mks. 



If we consider the area of the farms, the loans on mortgage made 

 between 1897 and the end of 1912, exclusive of supplementary loans, may 

 be classified as follows : 



The following figures, relating to the changes in the economic position 

 of the debtors, since the date of their loans, show that the credits granted 

 by the Bank have served to reduce the indebtedness of agricultural property 

 rather than to increase it. Out of 140,064,500 marks, the total amount lent 

 between 1900 and 1912, 23,520,250 marks have served to pay off mortgages 

 redeemable in instalments and 68,245,194 to pay off mortgages not so redeem- 

 able. It is besides evident that, when the new loans contracted are not 

 due to excessive prices having been paid for purchase, but serve for the 

 introduction of useful improvements answering modern requirements, they 

 only encourage agricultural progress. 



