The Detroit times., 1912-09-12
LAND BANKS OF EUROPE
HAVE SOLVED PROBLEM
Red-tape ILLUMINATED.


nay run from month 20 10 or even
20 years
Hed-tape eliminated.
There Is no delay or red-tape in
tett3as loan. The farmer submits
fia application TO tho board OF man
rgement. Inquiry Is made into the
folyency or rather honesty OF him
self and guarantors. and as 10 what
nse the money Is Intended for. II Is
absolutely required that the loan be
used for productive purpose, and in
the way specified In his application.
under penalty OF immediate recovery
and his dismissal from the society.
'Reckoned by averages, the size OF
these loans Is Insignificant while each
bank has only about $445 OF paid'up
capital and 92 members. But the
totals are stupendous. The 1886 or
such banke in Germany I'm 1910 hau
over $500, 100000 OF working capital
with which they made $l,5OO.OOO,OOV
OF loans
"The iandschaften OF Germany, tako
only real estate security. They are,
however founded on the principle OF
cooperation. There are 25 OF them
IN Germany. Besides these. there are
ave private land mortgage companies
that have adopted the landschaften
principle OF cooperation.
'sThe landschaft Is syndicate oi
borrowers, an association OF landoWn-
ers who are jointly and seyeraily IL
able without limit for all debentures
issued by It. II has no capital ana
pays no dividends. all profits being
placed to the reserve. II is financed
by it's debentures. These debeniureE
are secured first by the mass OF un-
derIying mortgages, next by the re-
serve and finally by the unlimited ia.
bility OF its members, and the amount
outstanding must never exceed the
face value of these mortgages. All
loans are for long pcrfods-SO TO 20
years--and are gradually extinguished
by half-yearly installments.
Loans Must Be Granted.
when a landowner joins the asso-
citation his title deeds are examined,
his property inspected and given an
estimated value. Should he wish
loan II cannot be denied provided he
complies with all the strict formali-
ties required. The maximum is two
thirds and the lowest one-half OF the
appraised value. II waste is com
mitted or threatened the association
may take possession of the mort
gagged premises.
seThe characteriZing features then
CT all the old landschaften are CO
operative credit, unlimited liability or
members and the right OF the associa-
fion To take possession OF the prop
erty of debtor without legal process.
THE interest the debt pays TO the
landschaften Is from one-half TO one
per cent higher than what their de-
bentures yield The highest return
paid by deDentures Is four per cent
The total outstanding debentures ex-
ceed $T00,000,000. The proportion OF
these funds that reached farmers is
not specified.
The success achieved by the land
rchaften In mobilizing real estate Sc
curities in Germany. brought about
the founding of the credit foncier or
france. the greatest land credit In
stitution that ever existed. Its pro-
rnoters discarded the principle or CO.
operation, but adopted the business
methods. OF the landschaften, and also
obtained for 1t the privileges that
made those associations so effective.
II Is purely a Joint stock company,
and its chief object is TO earn diyi-
6ends for shareholders, but 1t stands
high In the favor OF the people, and
has done inestimable good in France
and the colonies. while II has served
as model for similar concerns In ali
other European countries. and in sew
eral South American republics.
Loans Are Limited.
The Credit Foncier grants mortgage
loans only on first liens. The prop
ertv must ield certain and durable
rent. The amount OF the loan must
not exceed that OF one-half of the
value OF the property, or one-third or
such value for vineyards, woods, or
plantations.
mutual credit banks in this country
seems to be a matter OF legislation
solely for the different states. just as
Massachusetts, has already done. The
"Proyision for the establishment or
organization OF land credit is a ques-
ton that involves national as well as
state legislation. In order to give
fuidity to farm mortgage securities,
and AFFORD them an outlet at home and
abroad, large central land bank
with federal charter would, theo-
retically al least. be the ideal lnsti-
tuition provided state laws regarding
titles, foreclosures and investments
were made uniform"
John j. Pulleyn. comptroller Of the
Emigrant Savings bank, New York,
followed with an address on The
savings bank and the community" in
which he outlined the position which
the savings bank holds in It's locality.
nad the duties which Il owes to Its
depositors and stockholders. He paid
special attention 10 the proposed re-
striction or the rate OF interest on
swings deposits. and claimed that
such a provision would work against
the prosperous well-managed institu-
tion In favor OF weaker institutions.
Only Eastern Field Developed.
The speaker showed the growth OF
savings banks in the United States
since they were founded in 1916, ana
stated that the field has been de-
veioped only in the eastern states.
almost every other person YOU
meet I'm the New England states Is
savings bank depositor. while in some
sections OF the west there Is only one
IN 500: this Is evidence that the nelu
has not been worked" said Mr.. Pull
leyn
The trust company section dis