Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-06-22

gary there are Magyars Germans.
Sloyaks, Roumaniaus, Ruthenians,
Croats, Seryians, oaNons and what
not, all clingIng TO their languages
and fighting against race extinction.
In every attempt made 10 further the
agricultural interests Of the country
these conditions had To be taken into
consideration. The big estates owned
by the nobility complicated matters.
The scrfs were given their freedom
Just at the time when the landed no
bility was financially in the worst
condition
But despite these handicaps the
| Hungarian government has construct
ed system Of agricultural credit
time credit needs of the flrmers
whihc has proven Of the greatest
value. Government aid has played
an important part In the work
The mortgage credit institutions of
Hungary are neither purely cooper
ativc nor strictly private. The old
est ana most important mortgage
bank Of Hungary Is tho Hungarian
Land Mortgage Institute, founded IN
16G3 The government contributed
100000 Of the capital stock OF the
compouv and the balanc. WAS sub
scrib,d by "founders" who however.
were only required to pay in 10 per
cent Of the amount Of the stock for
which they subscribed These found
crs receive dividend limited TO b
per cent of their subscriptions Be
si6es tbc founders eyer,, landowner
who ulaced a MORTGAGE with the hank
is n member Of the bank. ONLY mort
gagors who have a mortgage indebt-
odness ia the hank Of at least $40 900
have any personal voice I'm the affairs
Of the hank The other members may
elect representatives to tho general
meeting. OF course as soon AS a
fermers' mortgage expires his mem
bership In the bank ends.
Under this form Of organization
the Uungarians attcmpted to secure
the co-operatiye princlple. OF reprc
sentation Of the narrowing farmers
while at the same tlmc placinp tho
greater mart of the mower In the
hands of the founders. only the
founders have tho nownr to elect the
resident and hoard Of control The
MANAGEMENT has fallen into the
hands ~ q favy mon who however
bava 40 MANAGED its affairs for the
public GOOD that II has satisfactorily
met the mortgage demands Of Hum
garian landowners. with the fault
however. that it's business is carried
or almost exclusively with large
land owners The process of secur-
ing money to lend land owners is that
Of selling bonds equal in amount to
the MORTGAGES placed with the bank
and secured by the mortgages. and
secondly. bv the capital and reser,s
funds of the bank.
The failure Of the Hungarian Larl
Mortgage Institute TO meet demands
OF small farmers led to organization
OF the Hungarian National Small
Holdings Mortgage Institute upon
lines similar TO the Hungarian Land
Mortgage Institute. but with the pro-
vision IN its charter that It should
NOT grant loans to largo landowners
until the demands of small owners
had been satisfied This bank also
grants loans to peasant farmers when
Il big estate is sub-divided amonf
many holders. Mortgage loans are
granted for only so per cent Of the
value Of the land in Hungary. but It
has been found that when anv hi.
estate is sub-diyided. fhe income from
the land is so increased that it is en-
tirelv safe to loan up TO two-thirds
of the value. In this way the peas
ant farmers are aided to buy big
estates
One fact Of special interest TO the
American Commission was developed
in its study of the HUNGARIAN mort
gage system. 1t is frequently the
practice for banks Of deposit to loan
money on mortgages. and to turn
these MORTGAGES over TO the mortgage
banks who in turn issue bonds based |
upon the MORTGAGES In such instan-
ces the bank of deposit appraises the |
makes the loan. Guarantees |
the mortgage which 1t turns over to |
the mortgage bank. and often col |
lects the payments of interest and
n,incinol For this service the mort |
-, p-.-, 81. ,.,,l ,,,,i. 90 |