agricuIvTtjRai, credit 57 



4) The Rural Bank grants mortgage credit to agriculturists : 



a) for the purchase of parcels from itself ; b) for the direct purchase of land 

 from large proprietors ; c) for the conversion of debts incurred by such pur- 

 chase of lands before the foundation of the. bank. Credit for these purposes 

 is secured by mortgages of the land in question. The mortgage is for a long 

 term and the interest is at the rate of 3 per cent. The creditors of the debts 

 mentioned under c) maj' be paid by the bank either in cash or in bonds, as 

 they please. 



As well as the long-term credit, granted as stated, the Rural Bank grants 

 to agriculturists short-term credit, secured by bills or pledged agricultural 

 products, agricultural machines, live stock and values. 



5) The Rural Bank is authorized by the law to carr}^ on every kind 

 of banking business: the discount of commercial bills, the purchase and sale 

 of titles, etc. This legal provision is justifiably criticized for it makes possi- 

 ble the diminution of the bank's capital to the detriment of the business 

 cited under numbers i) to 4). In practice however the Rural Bank does little 

 of this banking business. 



Net profits are di\ided as follows : 70 per cent, to shareholders and 

 30 per cent, to the reserve fund. The State takes, in its capacity of share- 

 holder, only 6 per cent, on the capital it has paid up, all the balance being 

 assigned to the improvements fund. 



The conduct of the Rural Bank has provided the following figures : 

 From the time it was founded until 31 Decembre 1913 it bought the 

 following properties : 



Year Hectares Value 



190S 8,308 4,200,940 francs 



1909 18,736 9,532,828 



191^ 30,597 16.392,155 



191 1 18,459 13,256,991 



I9I2 12,893 12,342,146 



I9I3 26,473 20,068,824 



115,467 15,793,886 



Of these 115,467 hectares only 20,171 are wooded and therefore capable 

 of being sold to the vState. 



The Rural Bank has sold a) to the communes ^,709 hectares for 

 28,909,600 francs ; and h) to agriculturists as follows : 



Number 

 Year of parcels Hectares Francs 



1909 124 519 43^'.43o 



1910 458 2,183 1,778,288 



1911 856 3,751 2,696,774 



1912 1,324 5,971 4,695,285 



1913 870 3,943 3,537.845 



3,632 16,369 13,144,621 



