Full resolution (JPEG) - On this page / på denna sida - III. Rural Husbandry. Introd. by H. Juhlin Dannfelt - 4. Public and Private Institutions for the Advancement of Agriculture. Introd. by W. Flach - Agricultural Credit Establishments. By V. Ramstedt
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iii. rural husbandry.
on loans secured on estates in fee-simple and country freeholds was reduced
from 6 to 5 %. In 1756, there was a further decrease to 4 %, irrespective of
the nature of the taxation to which the estate was subject. This decreased rate
has become fixed. The limit of the loans was one-half or two-thirds, and, in
some cases, three-quarters of the value of the estate. From 1770 to 1815, no
loans were granted on agricultural property, the Bank having no funds available
for the purpose.
The difficulties which arose for the Bank of Sweden from having its
funds locked up in agricultural loans of long standing gave rise to
the establishment of the Mortgage Societies (Hypoteksföreningar). The
Mortgage Society of Skåne was founded in 1836. Then came that of
Östergötland in 1845, of Småland in 1846, of the Mälarprovinserna in
1847, of Örebro Län in 1849, of Värmland in 1850, of Älvsborg and
other Läns in 1851, and öf Gottland in 1853. Those of Gävle—Dala and
of Norrland followed later on.
The Mortgage Societies were, to begin with, private institutions
independent of each other, which, by the sale of their bonds, chiefly aimed
at obtaining amortization loans for their members on the security of first
mortgages on real property. Mutual rivalry on the bond market,
however, proving mischievous in its consequences, the General Mortgage
Bank of Sweden was founded, agreeable to the ordinance of April 26,
1861. Its chief mission was to negotiate all the loans required to
procure the Mortgage Societies means for their loans. Moreover, a loan of
about 6 million kronor was made over by the Bank of Sweden to the
Mortgage Bank, on security of mortgage in landed property. The
Mortgage Bank obtained the monopoly of issuing bonds payable to the holder
against security of mortgage on real rural property, and the State handed
over to it a capital-stock of 8 million kronor in Government bonds. By
the enactment of May 16, 1890, this capital-stock contributed by the State
was increased to 30 million kronor.
The Mortgage Bank is administered by a Board of five members, of whom
the president is appointed by the Government, the vice-president by the
Commissioners of the National Debt Board, and the remaining three by deputies
from -the Mortgage Societies. Of the five auditors, one is elected by the Na
tional Debt Board and the other four by the Societies. In the regulations of
the Bank, which are sanctioned by the Government, no alterations can be made
without the consent of the Riksdag.
The Mortgage Societies, too, are administered according to statutes sanctioned
by the Government. They are allowed to grant loans against security in land
only, the value of which is estimated according to the appraised value, based
on the assement value or on a special estimate made on strict principles and
without allowance being made for the value of houses or forest. A loan must
on no condition be granted exceeding half of the assement value or the value
estimated in this way.
The present conditions for new loans are: a) 4 % interest and V2 %
amortization ; b) 4 % interest and 2 amortization; and c) 4 % interest without
amortization. In each case the borrower has the right to give notice of repayment
after ■ ten years. With a) and b) loans can be granted up to half the value of
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