The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1916-02-04
HOW THE FRENCH -.
FARMER IS FINANCED
Ample Provision Fer Rural CTsdiss
Make Efficient And 0rganizsd
Cooperation Pessihis.
F. B. .oMBERGER,
Maryland Agricultural College.

F. B. BoMBERGEa,
Maryland Agricultural College.
In France there are two agricultural
credit institutions: first, the Credit
Foncisr, or longtime land mortgage
credit institution; second, the Credit
Agricole, or short-ttme personal credit
system. The Credit FOucisr is a stock
company, organized under the strict
est government supervision, the Gov
ernor and two Vice-Govsrnors being
appointed BY the President of the Re-
public. Its capital stock was origin
ally $1,000. 900. the state having grant
ed 1t subsidy Of aa equal amount;
now. howsvse. it, capital stock IL
34s, 900 900 and 1t II Independent Of
government aid. 1t pays annual diva.
dends Of s.4% and its stock in 1914
was worth about $50 in the open
market
The Credit Foncier nakes loans on
agricultural land and TO municipal.
t&SS. Az okV3StO0 w. 0AO6S0AsANAy ssAS
same basis a. the German Landsehaf
ten, except that II ia not cooperative
1t makes short-tims loans not to OK.
coed nine years and not subject to
payment by amortization; it makss
also long time loans which run from
ten to seventy years. rspayabls By
amortization.
Strict Government Supervisor.
The Credit Foncisrl issues bonds -
cured by mortgages held by it a. ID
the case with tho LAndsahaften. AL
though these bondslars not guaranteed
by the French Government. 80 stric,
Is its supervision. that there is prac
tically NO chance for loss. A result
tho bonds are desausd tina safest kind
Of investment for trust funds. savings
funds and even public funds. In 1s1.
the bonds sold. IN the eren market 81
follows: sAs(bonds It s7.4: $50 bonde
at 90.e. ..,..--.. ........,.-r9i,..Y
The Credit Foacisr b administered
by a board of directors consisting Of
the Governor, the two v1cs-GovsrnorA
three auditors and about twenty direc
tors. This body is subject to thu
French Law and to the will Of thu
general assembly Of stockholders.
The operations of the Credit Fon
cier are carried on throughout the
Republic by branches Of the contra
institution. 1t viii Be observed thai
this great inltitutADu Is organized
from the top down inieontrsst with thu
German Landschaft, System. in which
the cenrtal control Is created by {
union Of local units. 1t also does ava,
with unlimited liability and is in tn,
strfctest sense q joint stock enterprise
operated In the interest of the stock
holders.
Short Time Loans.
The Credit Agricole, the short-tim,
personal-ioan institution Of Frasce, h
organized upan a plan fEem which ou,
new Regional Bank system of Bank,
was probably derived. BY laws d
1885, and 1899. the local agricultural
banks Of q certain area or district ar,
grouped together under . regtona
bank. Through these regional bank
the local banks do their businsss. ant
the French Government has placed q
the disposal Of the regional banks. IL
order that they may lend them to tn,
local institutions. large suanA of money
which the Bank of France Is bount
10 lend them without intsrsst Thes,
funds aRs distributed among the r.
.s1onal banks by 4 special Commute.
named by the minister Of agriculture
The local banks are composed 1,
whole Or in part Of one Or moro asri
cultural syndicate or buying-ant-seil
ing societies. The local bsuk acts a
the suarantor Of the financial obltss
lions Of the individual farmers o.
groups OF farmers. to the rsgiona
banks. which in turn do the real bank
ing business. securing tie money, etc
The most common methed is for Ia
regional bank to dissouat the bits o
the local bank.
Low Interest Rate.
: Capital Of tho local bank whish 4
usually very small Is isvasted in seoel
Of, the regional bank. and interest o
4s4 per annum Is paid spen the name
The matter Of receiving deposits
Optional with the local banks. as 4
also the extent Of liability of the In
dividusl members Of the local banka
varying from liability merely for tn,
capital stock to. unlimited liability. a
in the case of the RaiReisen Banka
Only about oneiourth OF the loca
banks in France have adopted the IN
limited liability system.
Loans must be secured by collateral
or by a guarantor; and range from
three months to one year. Rates o
interest are very low. ranging from
Nc to 10 above the amount paid b.
commercial or savings banks upon de
posits In 1906 the Credit Asrieol,
was authorized to make loans securet
by mortgage on land; but this brancl
of the business has not grown great.
as yet.
The Credit Agricole Is of especia
value to the French farmer in develop
ing the cooperative projects for whicl
France, as we'll as the other nations o
Europe, are noted. Without these or
CARNATIONS for providing agriculture
credit, efficient cooperation in rura
life and industry would be, as 1t Is il
this country, practically impossible.
study Of the Credit Fonoier and thu
Credit Asricole indicates that II ough
to be comparatively easy matter Il
create some modification OF he Land
sehaften and Rateisen Credit insritu
tons suitable to American conditions