58 RUMANIA - CREDIT 



These 3,632 parcels '.vere sold to 3,318 agriculturists, which is to say 

 that 89 per cerxt. bought only one parcel each. 



In addition to its sales the bank has let on lease: 20,856 hectares to 

 fourteen collective farms comprising 3,677 members ; and 17,777 hectares 

 to 5,099 agriculturists. 



The remainder — namely 32,187 hectares of arable land and 20,171 hec- 

 tares of woodland — is directly cultivated and its profits realized Ijy the 

 bank. 



The Rural Bank has granted 4,128,912 francs on mortgages to agricul- 

 turists who have bought their lands directly from large proprietors. At the 

 end of 1913 the shoit-term credit granted amounted to 5,602,048.65 francs. 

 The value of the credit granted to communes was 28,647,200 francs. Net 

 profits in 1913 were 990,450.69 francs. This sum was distributed as follows : 



To the reserve fund 30 per cent. 297,135.00 francs 



To the .shareholders 30 » » 646,657.80 » 



To the improvement funds . . 30 » » 46,657.89 » 



According to the balance-sheet of 1913 the reserve fund was 1,179,754 

 francs. 



§ 5. Agricui^tural and Viticulturai, Credit 

 (Creditul Agricol si VlilCOI.). 



On 30 Ma}^ 1881 the law as to departmental agricultural banks was 

 passed in Rumania. The first of these banks was founded in 1882 and 

 gradually there came to be one of them in each department. 



lyCgally they are stock-companies. In the intention of the law aU 

 shares were to be subscribed by the agriculturists of the departments, but 

 this was reahzed only in the agricultural bank of Jassy. The subscription 

 of shares in all other departments was very small and the State was obhged 

 to provide the necessary working capital in the form of loans to the 

 banks. In 1892, the year in which the working of the banks was arrested, 

 the loans granted by the vState amounted to seven milhon francs. 



The activity of each bank was limited to the department in which it 

 was situated. The banks were completely independent of each other. 

 They were authorized to grant to agriculturists only short-term credit, for 

 terms of nine months, the security being : a) hills ; b) pledged agricultural 

 products or macliines and values. The rate of interest was at first 7 per 

 cent, but was raised to 11 per cent., and if dues to be paid on documentary 

 evidence supplied or drawn up be included the actual rate was often from 

 15 to 20 per cent. 



The law prescribed no maximum for loans to agriculturists. Thus at 

 the beginning of each year all or almost all the available capital was engrossed 

 b)^ a restricted number of medium-sized proprietors, and small proprietors 

 derived no benefit from the banks. Their unsatisfactory results decided 



