The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-06-19
Commission FROM
u S. IN HUNGARY
System of Agricultural Cred
it There is of Great
Value.
(National News Association

BUDAPEST. Hungary, June 19.-In
a special train provided by the Hun
garian government the American Com
mission on Agricultural Cooperation
was brought here from Fiume. the
principal Hungarian seaport.
The agriculture of Hungary lacks
the extreme intensiveness which was
so marked in Italy, probably because
of insufficient labor Rural Hungary
more closely resembles rural America
than any other country of Europe
In years past Hungary, like the Unit
ed States, resorted to foreign immigra-
ton to increase her population. But
wars and the too rapid increase of for
eign peoples prevented any assimila-
ton and today in Hungary there are
Magyars, Germans, Slovaks, Rouma-
mans, Croats, Servians, Savons and
what not, all clinging to their Ian
guages and fighting against race ex-
tinctiOn, In every attempt made to fur
Their the agricultural interests of the
country these conditions had to be ia
ken into consideration. The big estates
owned by the nobility complicated
matters. The serfs We're given their
freedom just at the time when the Ian
ded nobility was financially in the
worst condition.
But despite these handicaps the
Hungarian Government has construct
ed a system of agricultural credit both
for mortgage loans and for short time
credit needs of the farmers which
has proven Of the greatest value. Gov
eminent aid has played an important
part in the work.
The mortgage credit institutions of
Hungary are neither purely co-opera-
tive nor strictly private. The oldest
and most important mortgage bank of
Hungary is the Hungarian Land Mort
gage Institute, founded in 1868. The
government contributed 100000 Of
the capital stock of the company and
the balance was subscribed by ''foun-
ders" who, however, were only requir-
ed to play in 10 per cent of the amount
Of the stock for which they subscribed.
These founders receive dividend
limited to per cent of their subscrip-
tons. Besides the founders, every
landowner who placed mortgage
with the bank is a member of the
bank. Only mortgagors who have a
mortgage Indebtedness to the bank of
at least $4,000 have any personal
voice in the affairs of the bank. The
tives to the general meeting. OF
course as soon as farmers mortgage
expires his membership in the bank
ends.
Under this form of organization the
Hungarians attempted to secure the
cooperative principle, of representa-
ton of the borrowing farmers, while
at the same time placing the greater
part of the power in the hands of the
founders. Only the founders have the
power to elect the president and board
of control. The management has fall
len into the hands of few men who,
however. have SO managed its affairs
for the public good that 1t has salts
factorily met the mortgage demands
of Hungarian landowners. With the
fault, however that it's business is
carried on almost exclusively with
large landowners. The process of Sc
curing money to lend landowners is
that of selling bonds equal in amount
to the mortgages placed with the
bank and secured by the mortgages,
and, secondly, by the capital and re-
serve funds of the bank.