THE PRLNCIPAI, RURAI, I,AND CREDIT INSTITUTES 69 



seen in the great development of its business, the amount of which is al- 

 most equal to that done by the National Credit Institute for Small Ivandown- 

 ers. In fact, on Decemljer 31st., 1910, the mortgage loans amounted to 

 about 164,600,080 crs., and the communal loans to 30,085,796 crs. The 

 capital at the same date amounted to 20,000,000 crs ; the reserve fund to 

 1,984,624 crs. and the special guarantee fund for land bonds to 8,620,454 crs. 

 The progress made bj^ this institute has been favoured by various 

 Government measures, the object of which is to faciHtate the transfer of 

 mortgages, the transmission of land bonds, and the grant of some fiscal 

 facihtations. 



4. — The Hungarian Commercial Bank of Pest was founded in 1845. At 

 first it did not specially propose to conduct mortgage credit business. The 

 foundation of the Hungarian Land Credit Institute suggested the idea of 

 instituting an urban mortgage credit department in connection with the 

 commercial bank. 



Since the business of this department made little progress, as the con- 

 ditions of the loans were too burdensome, in 1882 it was decided to include 

 rural mortgage credit within the scope of the Bank. In that year an issue of 

 land bonds was made at 5 %, which largely contributed to the progress of 

 mortgage business. Before that date the institute had issued bonds at 

 6 and at 5 |4 %. In 1886 it began to issue bonds at 4 ^ % and in 1893 at 

 4 %. The progress of the business is seen from the following figures. At 

 the end of 1910 the amount of the mortgage loans was 245,457,745 crs. and 

 of this 82,303,810 crs. were secured on rural estate. At the same date, there 

 were bonds at 4 14 % ^^ circulation, of the nominal value of 100,341,800 

 crs. and bonds at 4%, of the nominal value of 146,857,600 crs. In addition to 

 lending on mortgage, tliis bank had lent 236,594,941 crs. to communes. 



A very large part of the business of this bank is commercial, so that it 

 takes the third place among the large Hungarian banks limited by shares. 



5. — The Hungarian Discount Bank at Budapest is of less importance for 

 rural mortgage credit than the banks above mentioned. Founded in 1869 

 and reorganised in 188 1, it only began its mortgage credit business in 1902, 

 when it issued bonds at 4 %. In 1907 there was an issue of a new 

 series at 4 14 %• '^he mortgage loans in 1910 amounted to 74,33i>53i 

 crs., 28,862,933 crs. being granted in favour of rural estate. The amount 

 of the bonds in circulation was 74,598,400 crs. 



Some savings banks also call for mention among the land credit 

 institutes. 



6. — The General Bank of Nagy Szeben, founded in 184 1, originally 

 did not intend to conduct mortgage credit business. It began to do so in 

 1887. Through wise management, the mortgage loans made by this bank 

 have now reached the comparatively large sum of 80,700,190 crs. The 

 land bonds are for the most part of the 4 ^ % type (59,931,300 crs.). 



7. — The General Savings Bank of Brasso founded in 1835, was 

 transformed into a society limited by shares at the end of 1896, but its issue 

 of land bonds only dates from 1901, so that in 1910 its mortgage loans only 

 amounted to 31,139,326 crs. 



