The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1916-05-19
now THE FRENCH
FARMER is FINANCED
Ample Provision For Rural Credits
Make Efficient And Organized
Cooperation Possible.
7 y BOMHERGER,
Mar land Agricultural College.

In France there are two agriculture
credit Institutions. nTst, the Credit
Foncier. or long time land mortgage
credit institution, second. tho Credit
Agicule. or short-tme personal credit
system. The Credit Foncier IL stock
company. organized under the strict.
est government supervision, the Gov.
erTor aud two Nicc-G0vernors b ing
appointed by the President Of the lie
public It. capital stock was origin
ally $1,000. 90. the tate having grant
sd It subsidy Of an equal amount,
now, however. It's capital stock T..
SO 100000 and It Is independent Of
government aid II pays annual divi.
dends Of ca. and It's stock In 1914
was worth about $50 In the open
market
Tho Credit Funcier makes loan, on
agricultural land and to municipal.
lies. It operates on substantially the
zane basis as the German Landschaf
ton, except that Il is not cooperative.
II makes short time loans not to *
coed nine YEAR, and not subject 10
payment BY amortization; It makes
also long time loans which run from
ten to seventy years. rcpayable by
amortization.
Strict Government Supervision.
The Credit Fonc.er issues bonds so
cured by mortgages hold by II as IL
the case with the Landschaftcn Al.
though these bonds are not guarantr, d
by the French Government, 70 strict
Is It's supervision, that there is prac.
ucally no chance for loss. As result.
the bonds are deemed the safest kind
OF Investment FOR trust funds, savings
funds and even public funds In 1913
tNe BON sold III the open market as
follows 3iaft bonds at ga: so bonds
at 90.6.
The Credit Foncer is administered
by a board OF directors consisting OF
the Governor the two Vice-Governors,
three auditors and about twenty drec.
tors. This body Is subject to the
French Law and to the will Of the
general assembly Of stockholders.
The operations Of the Credit Fon.
cicr are carried on throughout the
Republic by branches OF the central
institution II will be observed that
this great institution is organized
from the top down IN contrast with tho
German LAndsChHft Sys,em, In which
the cenrtal control Is created by a
union OF local units II also does away
with unlimited liability and is in the
strictest sense joint stock enterpri- q,
operated in the interest Of the stock.
holders.
Short Time Loans.
The Credit Agricole. the short time
personal.loan Institution OF France, Is
organized upon plan from which our
new Regional Bank system of Banks
was probably derived. BY laws Of
1894 and 1899 the local agricultural
banks Of certain area or district are
grouped together under regional
bank Through these regional banks
the local banks do their business. and
the French Government has placed al
the disposal Of the regional banks. in
order that they NAV lend them 10 the
local institutions, large sums OF money,
which the Bank OF France Is bound
70 lend them without interest These
funds are distributed kmong the re-
gional banks by special committee
named by the minister OF agriculture.
The local banks are composed in
whole or in part Of one or more agrt
cultural syndicate or buying and ell.
ing societies The local bank acts as
the guarantor Of the financial obliga.
tons Of the individual farmers %