FARM FINANCE 129 



In Germany, on account of the limited supply of land and the 

 large population, and on account of the known productivity of 

 each piece of land, the value of that land is easily ascertained 

 and varies within very slight limits. In this country the varia- 

 tions in value are very great. In Germany the average farm 

 is about 20 acres; in this country the average farm is 138 

 acres. In Germany the credit and resources of the individual 

 in a community are known to practically every other individual 

 in that community; in this country no such accurate informa- 

 tion is obtainable. In Germany the small farmer, his wife, and 

 children all do manual work on the farm, in this country such 

 a condition is rare. In Germany the people have been trained 

 to a supervision and control of their operation by strict gov- 

 ernment regulations, which would not be favored in this coun- 

 try. 



LONG-TIME MORTGAGE. 



In every system of rural credits a special emphasis 

 must be laid upon the long-time mortgage or long-time 

 credit as distinguished from short-term or short mort- 

 gages, which are usually the securities in ordinary mu- 

 nicipal banking. This system of mortgage credit the 

 commission found has existed in Europe since the 

 reign of Frederick the Great, and has been especially 

 developed in Germany, and in the German states in 

 Prussia. The fundamental principle of land-mortgage 

 bonds in vogue in these localities is the issue of bonds 

 which are based on the total value or security of many 

 pieces of real estate, instead of on individual holdings. 



This principle may well be illustrated as follows: 

 At the present time, if four farmers living on adjoining 

 farms desire to secure mortgages for any purpose what- 

 ever on their land, each one acts independently of all 

 the others. In the collective system above referred to 

 the mortgage would be laid upon the whole of this 

 property for the benefit of the residents thereon, on 

 terms agreed upon by these residents. It is easy to see 



