396 THE FUTURE OF OUR AGRICULTURE. 



work of one and the same institution. But such attempts 

 have invariably miscarried. And necessarily so. Because 

 in mortgage credit the object aimed at is to tie up capital 

 for a long time — under present-day conditions a very long 

 one. In personal credit the aim pursued must needs be to 

 keep funds fluid. M. Durand's intervention in France in 

 the matter of mortgage credit was quite exceptional, as 

 intended to be temporary only, being embarked upon simply 

 to make provincial capitalists realise that in the country's 

 market the rate of interest for mortgage debts had generally 

 gone down from the old 5 per cent, to 3 per cent. That lesson 

 having been taught, M. Durand's little banks desisted. 



For purposes of convenient personal credit under the 

 circumstances coming into consideration Co-operation may 

 be said to be a necessity. For purposes of mortgage credit 

 Co-operation may be a help, and a very effective one, too. 

 It has proved so in Germany, Austria, Hungary, the Scandi- 

 navian kingdoms, and to some extent in Russia. But it is 

 not necessary. And on new ground, where its methods are 

 not well understood, it seems preferable to avoid it and to 

 leave the business in the hands of Capital, at any rate in 

 the first stage. Capital is fully in a position to answer 

 requirements. 



The chief distinctive features of modernised mortgage 

 credit are these. Apart from cheapness — which is neces- 

 sarily dependent at all times upon the state of the money 

 market and the value of the security pledged, and upon 

 what may be achieved by means of good management — ■ 

 credit is given, not for a short term of years — as in other 

 cases appears preferable — but for a very long time, which 

 may, in fact, come to be indefinitely extended and the deter- 

 mination, of which, so long as he complies with the conditions 

 agreed upon, remains at the sole option of the borrower, 

 who by this means secures command of a fixed capital for 

 his free disposal. Coupled with this is the other character- 

 istic, namely, that the mortgage is gradually paid off by 

 means of a terminable annuit}^ which makes repayment 

 very much easier and less burdensome to the borrower, 

 who, however, is often allowed, after having in this manner 



