MEANS OF ACQUIRING LAND 



credit system. More than a hundred years ago 

 institutions were established in Germany for the 

 purpose of lending money to the farmers at a low 

 rate of interest; and the years have proved the 

 wisdom of this course of action. The most im- 

 portant institutions for making loans to farmers, 

 in Germany, are the district cooperative credit 

 associations (Lands chaf ten) which are public, or 

 semi-public institutions for the purpose of lending 

 money on mortgages. These are organizations 

 of landowners, who by combining their resources 

 into an unlimited company are able to borrow 

 money at a very low rate, at a rate comparable 

 to that for which the government can float its 

 bonds. As the institution is not intended for 

 profit, the loans are made to landowners at a rate 

 just enough higher than that paid by the institu- 

 tion to cover the costs of carrying on the business. 

 Money is loaned on mortgages to the farmers and 

 in order to raise the money for such loans, the 

 institution is permitted by public authority to issue 

 mortgage bonds to the value of the mortgages 

 it holds. As all the members of the associa- 

 tion are jointly and severally liable to the full 

 value of their lands, the bonds are considered 

 excellent investments, and are floated at a very 

 low rate of interest. 



When the money has been lent to a farmer and 

 a mortgage given to secure the loan, it is the regu- 

 lar thing to collect a small amount as a partial 

 229 



