1906.1 Small Holdings in Germany. 



35 



Among the various measures passed some years ago by 



the Prussian Government with a view to the amelioration 



of agricultural conditions were two laws 



^ n (June 27th, 1890, and July 7th, 1891) 



of Small Holding's ^-^ ; . ^/ \. ^ I ^ 

 in Germany. contemplatmg the provision of smal 



holdings, the purchase of which was to be 



effected by regular payments in the form of rent for a fixed 



period of years. 



The legislation in question provided for the formation of 

 General Committees in different Provinces, which should under- 

 take negotiations for the purchase and sale of holdings, prepare 

 plans, afford legal and technical assistance to the purchaser 

 and in every way facilitate the transfer. The transaction 

 was to be concluded through certain Government institutions 

 known as Rentenbanken, which effected the purchase either by 

 a cash payment or by giving the seller a negotiable bond, 

 guaranteed by the State, for three-fourths of the price agreed 

 upon, and received from the new holder an annual rent based 

 on a scale providing for the extinction of the mortgage with 

 interest on the capital. Six of these Committees have been 

 formed at Breslau, Bromberg, Frankfurt a.d. Oder, Hanover, 

 Konigsberg and Miinster. 



The Committees do not administer any State funds, but 

 merely arrange for the transfer of holdings, the liability of 

 the State being confined to the guarantee for the payment of the 

 purchase price, the repayment of which is covered by the 

 annual rent. 



The experiment, which has now been in operation for some 

 years, appears, from an article in the Landzvirtschaftliche 

 Jahrbiicher (1905, Part I.) by Herr Linschmann, to have met 

 wdth considerable success. Between 1891 and 1903, no less 

 than 9,923 holdings have been allotted, having an area of 

 280,000 acres, and valued at ^^4,233,000. The average price 

 was about ^15 per acre. Some 317 holders had become 

 bankrupt, and involved the State in a loss of ^34,000, but this 

 sum is considered very small in view of the total amount in- 

 volved, and it is thought that with increasing experience losses 

 of this kind will be avoided. 



In the article mentioned above, Herr Linschmann gives some 



