Dec. 1894.] AGRICULTURAL CREDIT BANKS IN RUSSIA. 



185 



-commune possession of land widely prevails ; the second is applied 

 to places where the inventory system prevails. 



In all technical points, the Bank for the Peasantry carries on 

 its operations on the ordinary bases of mortgage banks. The 

 bank obtains the means of advancing loans by the issue of 5 J 

 per cent, mortgage bonds, which are guaranteed by the estates 

 mortgaged and by the general resources of the Government. 

 For all loans advanced, the borrower is obliged to pay every six 

 months : a., 2| per cent, interest ; 6., 1 per cent, liquidation on 

 loans for 24^ years, and \ per cent, on loans for 34 J years ; 

 c, \ per cent, in favour of bank and reserve capital ; in all S\ 

 per cent, yearly on loans for 24 J years, and 7 -J per cent, on loans 

 for 344 years. Loans are advanced in cash from the funds 

 derived from the sale of the bank's mortgage bonds. In 1893 the 

 5 1 per cent, mortgage bonds of the Bank for the Peasantry were 

 converted into 4 1, with a corresponding abatement of the interest 

 paid by borrowers. 



Further particulars as to the progress of this bank is con- 

 tained in a Report dated 16th August 1894, transmitted to 

 the Foreign Office by Mr. T. Michell, Her Majesty's Consul 

 General at St. Petersburg. In this report it is stated that the 

 Peasants' Land Bank is yearly contracting its operations, owing 

 to the growing inability of the peasantry to fulfil the pecuniary 

 obligations contracted by them towards the bank. The quantity 

 of land purchased with the aid of the bank has been gradually 

 diminishing. In 1885 the quantity of land so acquired by the 

 peasantry amounted to 318,002 dessiatines (795,005 acres) ; in 

 1886 to 294,688 dessiatines (736,720 acres), and in 1892 to not 

 more than 148,018 dessiatines (370,045 acres). In the course of 

 10 years the bank advanced 65,100,000 r. (6,500,000^:.) for the 

 purchase of land and the area of land purchased amounted to 

 1,890,349 dessiatines (4,725,872 acres), the participating pur- 

 chasers being 268,499 heads of families, consisting of 866,698 

 adult males. By December 1, 1893, the value of the lands 

 which have reverted to the bank by non-payment of the 

 advances made by it for their purchase amounted to 642,039^. 



During the first three years of its existence the bank advanced 

 about 3,500,000^. for the purchase of land ; in 1887 the advances 

 fell to 750,000^., in 1888 to 500,000?., diminishing during the 

 last three years to 450,000?. yearly. In order to make the pay- 

 ment of interest on its advances to the peasantry less onerous, 

 the bank during the past year converted its 5 J per cent, bonds 

 into those of 4^ per cent. 



