The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1913-06-19

COOPERATION

BUDAPEST. Hungary, June l9.-lI
a special train provided by the Hun
garian government. the American
Commission OH Agriculture Co.opera
zion was brought here from Fume. III,
principal Hungarian ea.port.
The agriculture of Hungary lack,
the extreme intensiveness which wa,
so marked in Italy. probably because
of insufficient labor. Rural Hungar,
more closely resembles rural Ameri
ca than any other country OF Europe.
In years past Hungary. like the Uni
ted States. resorted TO foreign imml
grafton 10 increase her population
But wars and the too rapid increase
OF foreign peoples prevented any as
s:milation and to-day in Hungary there
arc Magylrs, Germans. Slovaks. Rou
manians, Ruthenians. Croats, Servians
SaXons and what not. all clinging Ia
their languages and fighting agains,
race extinction. In every attempt
made TO further the agricultural inter
.csts OF the country these conditions
had to be. taken into consideration
The big estates owned by the nobility
complicated matters. The serfs were
given their freedom Just at the time
when the landed nobility was iinan,
cially in the worst condition.
But despite these handicaps tho
Hungarian Government mas construct.
cd 4 system OF agricultural credit both
for mortgage loans and for short time
credit needs OF the farmers which has
proven OF the greatest value. Govern
ment aid has played an important part
IL 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 1863. The
government contributed 100000 OF
the capital stock of the company and
the balance was subscribed by
founders" who. however. were Cnly
required TO pay in 10 per cent of the
amount OF the stock for which they
subscribed. These founders receive 4
dividend limited 10 per cent. of their
subscriptions. Besides the founders
every landowner who placed Il mort
gage with the bank is a member of the
bank. Only mortgagors who have q
mortgage Indebtedness to the bank OF
al least $4,000 have any personal
voice in the affairs of the bank. The
other members may elect representa-.
tives 10 the general meeting. Of
course as soon as n farmers mort
gage expires his membership in the
bank ends.
Under this form of organization tn :
Hungarians attempted TO secure tho
cooperative principle, of representa-
ton of the borrowing farmers. while
at the same time placing the greater
Tart 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 fol.
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 IL
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 reserve
funds OF the bank.
The failure of the Hungarian Land
Mortgage Institute to NEE demands OF
small farmers led to organization OF
TIE Hungarian National Small Hold.
ings Mortgage Institute, upon lines
similar TO the Hungarian Land Mort
gage Institute, but with the provision
in its charter that 1t should not grant
leans to large landowners until the de