108 AGRICULTURAL INDEBTEDNESS 



F. A. Nicholson's report, 'without due safeguards in 

 the prudence of the peasant, is expressly mentioned in 

 the reports, etc., as a cause of indebtedness in Europe. 

 Debt has increased more rapidly than the value of the 

 land ; easy credit has meant reckless borrowing ; an 

 " unearned increment" due to a general rise of prices, 

 to a greater demand for land, etc., has usually been 

 discounted by the owner, whether large or small 

 proprietor. 



*A few proofs will be given, those countries being 

 selected where the action of banks is particularly well 

 marked, amongst which will be specially noted Swit- 

 zerland, a country often quoted as an example both in 

 the organization of its credit, the industry, education, 

 and produce of its people, its methods of local govern- 

 ment, etc. 



* Switzerland, for about 3,000,000 of people, has about 

 900 banks of all sorts ; it may be said that there is a 

 bank for every village ; and the Federal Department 

 for the Interior expressly states that private "capital- 

 ists are no longer of any importance as lending agents, 

 the mortgage and savings banks being now (1891) 

 almost the only sources from which the landed pro- 

 prietor can borrow" (Commercial, 9, of 1891). The 

 result is that ** borrowing has now been rendered easy 

 for him — too easy, indeed, perhaps, for the indebted- 

 ness of the land cannot go on increasing without 

 seriously endangering his position ; it is only in ex- 

 ceptional cases that holdings purchased and worked 

 on credit can clear off their indebtedness by what they 

 produce" (Commercial, 5, of 1891). "Credit is here 

 (Berne) carried on to such an extent that general pros- 

 perity is already injured thereby, and will probably 

 be still more injured in future "; the real estate " is so 

 heavily mortgaged that, in consequence of several years 

 of partial failure of the crops, the state of agriculture 

 is in a precarious position, the proceeds thereof being 

 scarcely sufficient to support the parties and enable 



