[Extracts from the Report by Mr. J. R. CaJiill on Agricultural Credit 

 and Agricultural Co-operation in Germany. Cd. 6026 of 1913.] 



MORTGAGE (LONG-TERM) CREDIT. 



In the number and variety of the agencies through which they can 

 obtain long-term mortgage credit on relatively easy conditions, land- 

 owners in Germany, both large and small, enjoy signal advantages as 

 compared with the corresponding classes in this country. Setting aside 

 for the moment the Joint Stock Mortgage Banks, the whole of these 

 agencies are in the nature of governmental, non-profit seeking 

 institutions usinsc the word " ;overnmental" in a sense that would 



O ~ 



comprise the State, provincial, district, municipal (or communal) 

 authority as well as those corporations of landowners which rank as 

 public bodies. The various agencies may be divided into three main 

 classes according to the purposes for which their loans are granted. In 

 the first class there are four groups of intitutions, namely, the Land 

 Mortgage Credit Associations (Landschafteri) , the State, Provincial, 

 and District Mortgage Credit Banks, the Joint Stock Mortgage 

 Banks, and the Savings Banks, all of which grant mortgage credit 

 without requiring, in ordinary circumstances, any declaration as to 

 the purpose of the loan. The second group comprises the Land 

 Improvement Funds, the Land Improvement Annuity Banks, the 

 Provincial Aid Banks, and the Imperial Insurance Institutions, all of 

 which grant loans mainly for specific land improvement or building 

 undertakings. The third group is that of the Rent Charge Banks, 

 which are coneerned with loans in connexion with the creation and 

 equipment of small holdings. 



By far the most important class is the first : at the present time 

 the total value of the outstanding loans granted on landed properties 

 by the institutions comprised in it approaches 400,000,000. The 

 Land Mortgage Credit Associations and the Savings Banks are 

 represented in this total by about 170,000,000 each. With the 

 exception of the Savings Banks and of the relatively unimportant 

 Prussian Land Improvement Funds, all these mortgage credit 

 organisations obtain funds mainly (when not exclusively) by the issue 

 of land mortgage bonds. Thus the German landowner, by virtue of 

 his institutional mortgage credit, is enabled to mobilise, as it were, 



