56o 



Peasant Class on the Continent. 



[dec, 



(3) the improvement of roads and means of communication, 

 which are declared to be so bad that the carriage to and 

 from the nearest railway station is twice to three times as 

 costly as the freight from America to Europe ; (4) the pre- 

 servation of home agriculture against ruinous competition 

 by a countervailing tariff, and the protection of live stock 

 against the introduction of disease. 



A longer and more detailed paper was read by Dr. Carl von 

 Grabmayr, of Vienna, an epitome of which is subjoined. He 

 pointed out that while all are agreed that the future of the 

 peasant class is seriously threatened by its increasing indebted- 

 ness, and that means must be taken to check it, unanimity 

 ceases as soon as the causes of the evil are discussed and 

 proposals for dealing with it are mooted. The first question 

 that arises is what is meant by " over-indebtedness," and by 

 general admission it is accepted that the debt is excessive if 

 the produce of the holding is not sufficient to maintain the 

 peasant and his family, and to pay in addition the interest and 

 yearly redemption of the debt ; or if the debt exceeds two- 

 thirds of the value of the estate. 



A great, if not the greatest, part of the mortgages are 

 entered into when property changes hands either by purchase 

 or inheritance. The custom of paying a deposit on purchase 

 and raising the rest of the price by mortgage is widespread, 

 and is the more dangerous inasmuch as the purchase price often 

 exceeds the " true " value of the holding measured by the 

 net returns. But even when the holding passes by inheritance, 

 debts are often incurred to pay out the co-heirs, and the occupier 

 is induced to take on further liabilities to improve his property, 

 or to meet losses arfsing from bad management or misfortunes. 



The organisation of loans on mortgage is indispensable. 

 It is requisite that the creditor should not be able to foreclose 

 and that the debt should be redeemed by yearly instalments. 

 But private persons are seldom willing to lend on these terms, 

 so the agriculturist is led to apply to banks, which as money- 

 making concerns are bound to exact the fullest security and the 

 highest rate of interest. In Prussia and Austria, on the other 

 hand, there are certain institutions which do not seek 

 for profit, but work only for the benefit of agriculture. If 

 these societies could be established everywhere the chances 



