The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1915-05-26

hopes OF the most aEoeEt s"<-'o ~
enthusiasts.
What Russia, Austria and Denmark
Have Done.
Though the fact is less generally
known, Russia has gone even farther
than Great Britain in extending
state aid to purchasers of small
farms. From 1858 to 1861 millions
of Russian serfs were liberated, aL.a
the government undertook to Pm
vide them with small farms. In
this way over 10000, 600 SINAI: held
ings, to the value of over n billion
dollars, were created, the govern
ment funds so advanced being pay
able on long time and at very low
interest rates.
In 1883 the Russian Peasants
State Land Bank came into exist.
ence, its purpose being still further
to aid in the requirement Of small
holdings. Loans to the extent of
90 and even 100 per cent of the val
ue of the land are made repayable'
in from Is to SIS IL years, with in
terest at the rate of 4 per cent. AS,
a result of this aid many thousands.
of tenants have become home-owners
In Austria land credit institutions,
under government supervision, exist.
in practically all parts of the coun-
try. These are operated in a man.
ner not greatly differing from the.
German landschaft system, state SUI
pervision, amortization and the is
suance of debentures being essential
features. Denmark, too, is far adj
vanced along rural credit lines, her
institutions being very similar in all
important particulars to the German
l~andschafts. In 1912 in this small
country loans to the extent of $44O,-
100000 were outstanding.
Summary of Main Features.
In summarizing it would appear.
that in common all European cred
its systems include amortization, is
suance of debentures, and govern
ment aid, either in the form of loans
direct, subsidies, or by close state
supervision of all rural credits act
ivities. That these features are COM
mon to all European rural credits
systems means of course that they
are deemed essential.
That without amortization any
proposed rural credits systems must
fail appears too evident to admit of
argument. Permanent farm i'm
provements almost never pay for
themselves the first year of their in
%stallation, and frequently, as in the
case of clearing lands and draining.
swamps, many years are required.
Certainly to expect on an average
any purchaser to repay the purchase
price in any period less than 10
years is unsafe. In recognition of
these principles European nations
long ago realized that without long
time loans with the amortization fea-
ture incorporated no system of rural:
credits on land could succeed.
The issuance of debentures is a no
less necessary feature. Good fam
lands afford excellent security, Tut
the average investor cannot afford,
because of the excessive costs for
the amount of business done, to
place his money in small farm mort
cages scattered here and there over
the country. The rural credits
agency, by issuing debentures,
against a mass of farm mortgages,
enables investors to obtain security
for large sums and at the same time,
gives the farmer the vast advantage
that comes from buying credit at
wholesale rates.
Among European nations Great
Britain, France and Russia are the
leading opponents of the principles
of state aid in the form of direct
loans; while Germany and Denmark,
while in the earlier days subsidizing
a number of land credit institutions,
have then worked to the policy of
close state supervision, rather then
direct financial aid. Under both
systems, European farmers have
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