292 Cooperation in Agriculture 



permanent improvements on the land. They are long- 

 term land credit banks. The credit is obtained on the 

 security of a collective mortgage on their lands which is 

 syndicated into a bond. The security also includes the 

 assets of the associations and ultimately the unlimited 

 liability of all its members. These bonds are sold to the 

 investing public, and the funds derived are used in making 

 loans to the members. There are twenty-five of the co- 

 operative land banks in Germany, the first having been 

 formed at the end of the eighteenth century. The total 

 amount of bonds issued by the Landschaften in 1909 

 equaled $653,294,429. 



The Landschaften are managed by an assembly of 

 land-owners and an executive committee. Those of the 

 Committee having legal knowledge may receive pay for 

 their services ; the others receive traveling and incidental 

 expenses only. The business of the Landschaften is 

 inspected by the government, and the employees are 

 indirect employees of the states. 



In granting loans, a proprietor makes a request for the 

 loan, giving a detailed statement of the object. The 

 funds for the loan are secured by the sale of the bonds 

 issued by the Landschaften, and the amount loaned a 

 member may equal from one-half to two-thirds the value 

 of his land. The estates of the land-owners who are mem- 

 bers of the Landschaften taken collectively form the 

 security for the bondholder. 



Concerning the Landschaften, Ambassador Herrick 

 states: 1 "Originally a Landschaft did not give cash to 



1 Preliminary Report on Land and Agricultural Credit in Europe. 

 Division of Information. Department of State, October, 10, 1912. 



