AGRlCUIvTURAI, CREDIT 55 



2) that 423,401 agricultural families, or 46 per cent, of their whole 

 number, owned less than three hectares, which in view of the fact that ex- 

 tensive agriculture prevails may be taken to be insufficent for the mainte- 

 nance of a family. 



Thus from 673,000 to 723,000 families are constrained to seek work on 

 the estates of the large proprietors. 



The first scheme for the formation of a rural bank dates from 1897. 

 The Minister of the Pubhc Domain, P. S. Aurelian, presented to the chamber 

 a scheme for the formation of a rural bank as a credit institution of the State. 

 But the change in the ministry which took place soon afterwards delayed 

 this scheme. 



In igo6 the qiiestion was again inserted in the agenda. A commission, 

 to which D. Strudza, J. Bratianu nd G. D. Creanga belonged, was then nomi- 

 nated and charged to recast Aurelian's scheme. The commission drew up 

 an entirely new scheme which it presented to the chamber in igo8 ; and hav- 

 ing been voted by ParUament and received the royal sanction the law en- 

 tered into force on 4 April 1908. 



The Rural Bank has its offices at Bucharest. Legally it is a stock com- 

 pany. Its capital in shares is of ten million francs divided into 20,000 shares 

 of 500 francs each. Half the shares were subscribed by the State which at 

 once paid up 60 per cent ; the other half were subscribed by individual capi- 

 talists who must pay up at least 10 per cent, of their subscription. The shares 

 are nominative and can be bought only by Rumanians. The capital in 

 shares may be brought up to the sum of 20,000,000 francs on condition 

 half the shares are acquired by the State. Besides its capital in .shares the 

 bank obtains credit from the National Bank and capitalists by its issue 

 of rural bonds. 



The following business is undertaken b}^ the bank : 



i) The purchase of domanial landed property and private property in 

 order to divide it into parcels and sell it to landless agriculturists or small pro- 

 prietors, and exceptionally to the communes or the State. Where the pur- 

 chase of State lands is concerned no legal provision limits the action of the 

 Rural Bank. In the case of private property the law forbids the purcha.se 

 of estates of less than 200 hectares. It is clearly the aim of the law to pre- 

 serve medium-sized properties. 



The Rural Bank pays the price of the land to the sellers either in cash 

 or in bonds. These bonds bear interest at the rate of 5 per cent, and are 

 amortizable in fifty years. They are issued on the security of the mortgage 

 credit afforded by the bank to agriculturists or the land bought by the rural 

 bank. The total value of the bonds in circulation nmst not surpass the 

 sum of the mortgage credit granted, plus 80 per cent, of the value of the 

 lands which the bank has bought and which are provisionally in its posses- 

 sion. 



2) The lands bought by the bank are sold to agriculturists and excep- 

 tionally to the communes and the State. Before the sale those on the ])lain 

 are divided into five-hectare and those in the mountains into three-hectare 

 parcels. Exceptionally and when there are no purchasers for such lots 



