The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-06-22
AMERICAN COMMISSION ON AGRI-
CULTURAL COOPERATION
VISITS BUDAPEST.
THE COOPERATIVE PLAN
HUNGARIAN LAND MORTGAGE IN"
sTTTUTE WAS FOUNDED IN
1s63 AND WAS ESTABLISHED
WITH AID OF GOVERN
MENT.

Z
Virginian.)
BUDAPEST, HUNGARY. June FL.
In a special train provided by the
Hungarian government. the Ameri-
can commission on agricultural CO.
operation was brought here from
Fiume. the principal Hungarian sea-
port.
The agriculture Of Hungary lacks
the extreme intensivcness which was
so marked in Italy. probably because
OF insufficient labor. Rural Hungary
more closely resembles rural America
than any other country OF Europe.
I In years past Hungary, like the
United States, resorted to foreign i'm
migration TO increase her population.
But wars and the too rapid increase
of foreign peoples prevented any as
s!milatIon and today In Hungary
there are Magyars, Germans. Sloyaks.
Roumanians, Ruthenians. Croats. Ser
vians, Saxons and what not all cling
ing to their languages and hghung
against race extinction, In every at
tempt made to further the agricul-
turai interests OF the country these
conditions had 20 be taken into con-
sideration. The big estates owned by
the nobility complicated matters. The
serfs were given their freedom just at
the time when the landed nobility was
:
Rural Credit System.
But despite these handicaps the
Hungarian government has construct
ed 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
W ntS
erative nor strictly private. The old
est and most important mortgage
bank Of Hungary is the Hungarian
Land Mortgage institute, founded In
1853. The government contributed
100000 OF the capital stock of the
company and the balance was sub
scribed 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
ers receive dividend limited to
per cent Of their subscriptions. Be
sides the founders. every landowner
who placed a mortgage with the bank
Is a member OF the bank. Only mort
gagors who have q mortgage indebt-
edness to the bank Of at least 100000
have any personal voice in the affairs
of the bank. The other members may
elect representatives TO the general
meeting. OF course, as soon as a
farmers mortgage expires his mem
bership in the bank ends.
Under this. form OF organization the
Hungarians attempted to secure the
CO. operative 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 elcct the president and board
of control. The management has
fallen into the hands OF few men
who. however. have SO managed 'its
affairs for the public good that It has
satisfactorily met the mortgage de-
mands of Hungarian landowners, with
the fault, however. that its business
is carried on almost exclusively with
large landowners. The process OF
securing 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 Ne
serve funds of the bank.
Aid Peasant Farmers.
The failure OF the Hungarian Land
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 it's charter that 1t should
not grant loans to large landowners
until the demands Of small owners
had been satisfied. This hank also
grants loans to peasant farmers when
a big estate Is subdiyided among many
holders Mortgage loans are granted
for only so per cent of the value OF
the land in Hungary, hut 1t has been
found that when any big estate Is
subdivided the income from the land
CONTINUED on Fourth Page.)