50 



RUSSIA - CREDIT 



the diminution in the normal average estimated va.\ue are explained by a 

 very considerably lessened bn34ng and selling of lands as a consequence 

 of the war. The figure representing the purchase of land b}^ peasants, 

 who are the great m.ajority of the purchasers, was less than a third of such 

 figure for the preceding year. The development of the mortgage credit 

 easily obtained from the Agriculturists' Bank much stimulated the pur- 

 chase and sale of lands. The peasants, seeking to satisf}' their " land 

 hunger ", caused prices to rise to unprecedented heights, yet further raised 

 artificiall}' — conditions which have been experienced in other European 

 countries. The war caused these purchases and sales to diminish and thus 

 caused also a fall in the price of land. 



Of the 470 loans made by the Bank of the Nobility in 1915, 131 of the 

 total sum of 3,864,200 roubles were secured b}^ first mortgages on a total 

 area of 71,502 deciatines of land previously unburdened in relation to the 

 bank. The remainder, namely 339 loans of a total sum of 37,963,000 rou- 

 bles were granted on renewed or complementary mortgages ou 425,399 de- 

 ciatines of land already mortgaged to the bank. 



The following table gives a more exact idea of the indebtedness of the 

 lands mortgaged to the bank : 



Table II. — Indebtedness of the Lands mortgaged to the Bank 

 from 1906 to 1 91 5. 



Since the Bank of Nobility first began business it has granted loans 

 secured by mortgages on lands already largely mortgaged, so that it has 

 reduced the terms on which the nobility can obtain land credit from batiks 

 and individuals. During the years of crisis the activity of the bank was 

 limited to support of the properties economically weakest, that is to soy 

 already burdened with mortgages. This phenomenon is to be observed 

 in 1907 when the percentage of the area already mortgaged was 92 and in 

 advance of all precedents. The year 1915 conies very near to 1907, its 



