768 AGRICULTURAL ECONOMICS 



The constitutions of the landschaften vary considerably from each 

 other, being adapted to the special needs of their respective provinces. 

 All, however, have a committee of management and a general assembly 

 of landowners. Members of the committee of management having 

 legal training, the syndics, as they are called, receive pay. The other 

 members of this committee and of the general assembly are land- 

 owners, who receive only their traveling and incidental expenses. 



The total number of landlords of a district collectively grant a loan 

 to the proprietor applying for it. The purpose to which the loan is to 

 be applied must be stated in detail in the application. No proprietor 

 can be refused a loan, as his land serves as security to the landschaft. 



Loans are not granted exceeding a certain percentage of the value 

 of the lands, varying with the different provinces and according to 

 the methods employed in fixing the rate of interest. The body of 

 landlords, although they possess real estate of enormous value, seldom 

 have cash money at their disposal and are forced to get from third 

 parties the money needed for loans to the borrowing landowners. 

 They have recourse indirectly to the capitalist as a means of getting 

 this money, offering their lands as a medium of investment. 



In order to render the negotiation of this paper easier for the 

 lenders, special banks have been instituted in connection with the land- 

 schaften dealing with this business, under the control of the society 

 itself and without any intention of making a profit. The profits 

 go to the landschaft as such. Formerly it was mortgaged land 

 that served as security under a secondary security of the landschaft. 

 Today the capitalist who has bought the bonds and is the creditor 

 of the borrowing landowner has nothing ~to~ct<5 With him. He receives 

 his interest from the landschaft and the whole of the estate of the 

 province forms his security. 



At first most of the landschaften only gave mortgages for one- 

 half of the estimated value. Now they generally go as far as to give 

 them for two-thirds of the value. Land already burdened with 

 other mortgages cannot receive any loan from the society. The land- 

 schaften, however, help proprietors when, in order to obtain a loan, 

 they desire to pay off previous mortgages. 



Except in the case of the three institutions of Hanover, the loans 

 are not granted in money, but in bonds. 



The interest the debtor must pay the landschaft is generally from 

 one-half to i per cent higher than what the landschaft itself pays its 

 creditors. 



