The Washington herald., 1913-07-27

the European countries visited by the
commission are organized along one or
more OF the following lines: Credit. pro-
auction. distribution. and social organi-
zation for the betterment Of country life.
Credit Facilities.
organizations for the provisions of
credit facilities for European farmers
follow the natural division into short
time personal credit and longtime land
mortgage credit The organizations for
the provision of personal credit facilities
are as highly developed as are the sys-
TENS OF commercial banking. The pre-
vailing rate Of interest paid by the
farmers for short-time loans is from
to Sig per cent The terms afforded
European farmers are generally better
designed to meet the peculiar require
ments OF agricuturists than are the
terms obtainable today by the American
farmers.
THE personal credit organizations have
the form Of cooperative societies. Very
often the members of these societies as
sumo unlimited liability for the debts of
the society. while in other cases the
societies take the form OF limited La
bility. while as rule In Eur. can coun-
tries the law makes little or no provision
for exemptions Of any kind. These short
time credit societies furnish cheap, safe
and elastic credit to their members by
reason Of their control by farmers. and
are organizations exclusively in the inter-
est Of farmers who operate them at nomi-
nal cost and without seeking dividend
profit to such societies.
"Land-mortgage credit has been organ
lied so as to place a collective security
back OF bonds issued by land-mortgage
-.
marketing individual loans upon indi-
vidual mortgages. Without discussing
the form Of organization employed fol
this purpose. It may be stated that these
landmortgage institutions bring to Euro
pean farmers low interest rates; the
privileges of repaying loans in small
fixed annual installments extending over
a term OF years-in some cases as Ions
as seventy-fve years under the amor.
tization plan, although provision fol
earlier payment is made IL the borrower
so desires; protection from advance In
interest rates; and the practical elimi.
nation of commission charges. Many oi
these personal credit societies and land.
mortgage associations are fostered BY
government grants. loans or special pro.
visions of law. Mortgage bonds ISSUED
by commercial banks and by private
joint stock land mortgage banks, sell
substantially on the same basis with
like securities issued by government
favored institutions and both classes o.
banks are recognized as needful in the
development and conservation of agri.
cultural resources. In many instances
private and commercial banks purchase
the securities Of land-mortgage associa-
tions. Experience has demonstrated that
such land-mortgage bonds are liquid as
sets.
Land Title Registration.
THE system OF land-title registra =
ton in countries possessing such
mortgage institutions practically pre-
vents dispute of title upon mortgaged
land. Provisions are also generally af-
forded these mortgage institutions
which eliminate undue legal delays in
The recovery of loans placed with de-
fsulting borrowers. Savings and trust
funds are frequently invested in secur-
tiles of such mortgage institutions un-
der sanction of law. Loans up to so.
or even 66, per cent are made on lands
Of dependable value. and are consid-
cred safe and conservative, and COM
pare favorable with provincial and
government bonds.
The organizations for production
and distribution of farm products fol-
low cooperative lines. Farm products
are sold by the producer at a rela-
lively higher price, and are bought by
the consumer at relatively lower
price because the cost of distribution is
considerably lowered by cooperative
marketing which results. also. in i'm
proving the quality and uniformity OF
farm products and in promoting more
business-like methods in farming oper-
ations"