378 PROVISION OF BORROWING FACILITIES. 



them up to the amount for which their estates after valuation furnish 

 the security required by the particular regulations. The earliest 

 Associations admitted to membership only large owners holding under 

 specific tenures, but, especially within the last generation, and 

 particularly as a result of the great Agrarian Conference of 1894, and 

 the subsequent action of the Prussian Government, which urged the 

 individual Associations to devote more attention to the needs of the 

 smaller proprietors, small landowners have been brought within the 

 range of eligibility. That quite small owners may now obtain loans 

 is evidenced by the fact that one Association, lending up to half the 

 value of estates on first mortgage, fixes the minimum loan at 15, 

 some others fixing it at 25 ; at the end of 1911 one Association had 

 loans outstanding upon 284 properties of under 12| acres, another 

 granted (in 1911) 34 loans upon properties of less than 24 acres, and 

 1,480 loans on properties of over 2J acres, but not exceeding 25 acres. 

 The maximum limit to the amount to be lent upon estates is fixed by 

 most Prussian Associations at J- ths or |- rds of their value as a first 

 mortgage cluyge, in the non-Prussian Associations one-half is the 

 usual limit. 



The loans are, as a rule, made not in cash, but in bonds, which the 

 borrower either realises independently, or takes to the Loan Bank of 

 his Association (if such a Bank has been established), the latter selling 

 them on his behalf or making him an advance on their security. 

 Intending borrowers may choose the rate of interest to be paid, the 

 rates most usually open to their choice being 3, 3i 4 and 4J, per cent. 

 Bonds of various denominations are issued; there are bonds of 3 15s., 

 5, 7 10s., 10, 15, 20, 25, and up to 150, some Associations 

 issuing those of 250, and the Central Association those up to 500. 

 These bonds, which are not redeemable by holders, have consistently 

 maintained a strong position in the market ; thus at the time of the 

 Napoleonic wars, when Prussian 4 per cent, stock sank to 20, Silesian 

 land bonds never fell below 50. ' 



The loans granted by these Associations are not subject to recall : 

 the rate of interest is as moderate as possible, being closely related to 

 the prevailing market rates for money, and cannot be raided, and 

 while annual payments are required until at least a certain percentage 

 of the capital debt has been accumulated in a sinking fund, repayment 

 may be made by additional instalments at the mortgagors' convenience. ' 

 Costs arising in connection with valuation and other preliminary 



