AGRICULTURAL < Rl.IHT IN THE UNITED STATES 959 



addition of J per cent to this rate to cover the costs of admin- 

 istration and the contribution to the reserve fund makes the 

 farmer's rate from 4 to 4.5 per cent. He also pays the costs of 

 appraisement and of making out the papers. The rates of the 

 State and Provincial Banks and of the savings banks are slightly 

 higher, while those of the joint-stock mortgage banks are from 

 i per cent to f per cent higher. That German farmers enjoy 

 exceptionally favorable rates is shown by the fact that Landschaft 

 bonds bearing the same rates as government securities are usually 

 quoted only from i to 2 points below the latter. 



The only special mortgage-loan institution in France is the 

 Credit Foncier, founded in 1852. This institution was intended 

 to render to the farmers of France the same service which the 

 I^andschaften render to those of Germany. It enjoys a monopoly 

 of the right to issue real-estate mortgage bonds, and has become 

 a powerful and world-famed institution. But it has signally failed 



!ixe the hopes of its founders. Of the total rural-mortgage 

 indebtedness of France, amounting to about 3,000,000,000, a 

 little less than one-tenth is borne by the Credit Fonder. Bonds 



tly issued (for example, in November, i<ji2) bore a 4.5 per 

 cent rate. To this must be added the .6 per cent allowed for 

 administration and the expense of making the loan, which the 

 farmer pays and which in Lr.r cry heavy. Therefore, the 



h farmer is paying about the same rate as the farm- 

 the best agricultural districts of the United States. 



Impressed by the fact that in Kun.pc debenture Umls play 

 so important a part in mortgage loans, the advocates of the 



M, whet; leral, of mortgage credit in this 



country base their various schemes on the issue of dclx-nture 



. I'.ut these enthusiasts have failed t<> understand the limi- 



9 of this very delicate credit instrument and, <\\i; 



lack of sufficient inform. .lion, have < >d the success of 



Kuropeans in making debenture ln<i and furthermore, 



attached stiiiu ient \\eight to the great differences 



id American conditions. 



ad bond and tli< 

 nd in : >onal, since the borrower and the 



