62 HUNGARY - CREDIT 



contributing to the foundation of the National Confederation of Land Cred- 

 it Institutes, with which we have already dealt (i), together with the Hun- 

 garian Ivand Credit Institute, the "National Credit Institute for Small 

 I^andowners" and the " Central National Mutual Credit Society." This 

 Confederation is an institution of public utility, which, in addition to provid- 

 ing credit, is bound bj^law to encourage the subdivision of land, home colon- 

 isation, the building of houses for agricultural labourers, the purchase of 

 pubhc grazing grounds and landed estate etc. 



The Confederation must further promote dismortgaging by means of 

 the life insurance of the debtor, in the manner already indicated by us (2) . 



We shall now complete our previous articles b}^ some considerations 

 in regard to the principal Hungarian institutes for the grant of land cred- 

 it, which, may be classified under the three following heads : co-operative 

 land credit associations ; mortgage hanks and hanks for mixed purposes, 

 limited hy shares; mixed savings hanks. 



§ I. Co-operative land credit associations. 



There are in Hungary three land credit institutions on co-operative 

 lines : (i) The Hungarian I^and Credit Institute, of Budapest ; (2) The 

 National I^and Credit Institute for Small lyandowners of Budapest; (3) The 

 I/and Credit Institute of Nagy Szeben. 



I. The Hungarain Land Credit Institut of Budapest began work on 

 July i^t., 1863. 



It is an association of landed proprietors. The members are jointly 

 and severally liable for the engagements of the societ5^ in proportion, 

 however, to the amount of the loans contracted b}^ each. They manage 

 the institute and are divided into two classes, foundation and ordinary 

 members. 



The fou-ndation members are the 209 landowners who obtained the con- 

 cession to constitute the Institute and, in conformity with the provisions 

 in the rules, contributed to a guarantee fund of at least 1,000,000 florins 

 in cash or in bonds and formed the original organisation of the Institute 

 itself. 



All the landed proprietors of Hungary to whom loans have been grant- 

 ed are ordinary members. In 1883, the Hungarian Government became an 

 ordinary member on contracting a loan for 7,000,000 crs. on mortgage of 

 real estate. 



The guarantee fund formed by the foundation members amounted 

 to 1,177,000 fls., but as the State has contributed 500,000 fls., it is now 



(i) See Bulletin of Economic and Social Intellii^efice, No. 2, 1912. National Confeder- 

 ation of Land Credit Institutes in Hungary. 



(2) Life Insurance as a Means of Promoting Dismortgaging and Acquisition of Lanri, 

 in the Bullclin of Economic and Social Intelligence, August, 1912. pp. 129 et seqq. 



