The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-29

Der, which is the Landwirtschafts-
rat, which consists Of seventy-two
members. having their seat in Berlin,
and having the right of the initiative
and referendum on all laws affecting
agricultural interests. The Parlia-
ment must submit these laws to the
Landwirtschaftsrat for its opinion.
This organization Ia a bureau Of in
formation and has the power to ad-
minister to the interests of agriculture
and may ever distribute he products
OF the soil. Mr.. Lubin states that 1t
makes trusts in food products impos-
sible and hat II the system was
adopted in this country producers
would not have to grope In the dark
and guess when. how and where to
sell. II this In the case It Ia certainly
the system all American farmers and
fruit growers are hoping and praying
for, aside from the value of the rural
credits plan.
Mr.. Lubin says this plan Is far su-
perior to any OF the plans before Con-
gress. and as the system has been
in operation in Germany for over a
hundred and fifty years without a
failure It would seem dificult to pro-
duce a better record by any other
method.
A group OF landholders asks for q
charter to form a Landschaft and in
corporation is granted much the same
as in the case OF a national bank. The
credit OF the Landschaft is based on
the collective value of the farming
land included in II, the land of all the
members being apparently included
As loans are required by the members
bonds on the collective value are Is
sued, and the members give a mort
gage on their land rs security to the
Landschaft. These bonds are the
very highest sort Of security. Mr.
Lubin wrote TO Prof. Brodnitz Of the
Halle University a few months age
asking him how the Landschaft bonds
were holding in the war. The profess
sor replied as follows:
-They r holding their " as
they have done in panics and wars be-
fore now The Bourse. as you know
Is at present closed. but the Land
schaft bonds in passing from hand
to hand maintain their values as be-
fore the war"
No question can be raised as TO title
The mortgage given Is equivalent e
a judgment and tho Landschaft may
foreclose without further &c
a lawsuit. The question as to the
| value OF the land Is never In doubt
The value Is established by thorough
surveys, showing the depth Of tn,
soil. whether II 10 subject to over.
flow or atmospheric troubles, what II
produces and what It's net earnins
power Is. There must be a method Of
maintaining the earning power dur.
ing the life of the mortgage. AL these
matters must be definitely settled &c
the satisfaction OF the expert, the Dor,
rover. tho novice and tho Govern,
ment, 40 as to establish the merits Of
the bond in the open market. The
bonds sell in the market as high a.
Government bonds. Thus farmers arr
enabled TO borrow money at 8 TO
per cent. Or as cheaply AZ the Govern
ment, instead OF having to pay
to 10 per cent. as In this country
There r. a provision whereby tn,
mortgage may be paid OF at any time
Even II the term is for seventy-hv,
years II may be paid of IN a few
years by the borrower by the simpl,
procedure OF buying the bonds of tn,
Landschaft IN the open market ant
bringing them 10 the directors ant
exchanging them for the mortgage
Under the mortgage system az known
in America the mortgage cannot b,
discharged before maturity save a
the pleasure OF the mortgage.
Mr.. Lubin IL convinced that thi
system would work wonders for IN,
United States, being OF inestimabl
value TO the farmers and city peopl
as well. He intimates that Englan,
IL likely 10 adopt the system.