The Express.
London, England, 1863-10-08 00:00:00

LONDON, THURSDAY EVENING, OCTOBER 8. 1868.

THE LAND MORTGAGE BANK of INDIA
(CREDIT FONCIER MIEN) (Limited).
Capital, R 3,000,000. In 100,009 Mares of ZlO each.
Payment on Adotment, Et per Mare.
inaleCTwee.
CHAIRMAN—S. LAING, Esq., late Finance Minister of India.
Colonel Balfour, C. 8., late Chief of Ifllitary Finance Depart-
ment of India.
IL L Bischodsheim, Esq. (Mows. Illschoffsehelm and Gold-
schroldti.
Bon. W. S. Irltzwilliam (Member of the Supreme Legislative
Connell of India.
Bit John P. Grant, 1E.C.8., late Lieutenant-Governor of

Banal.
P North&ll Laurie, Egg , Gomm°, of Union Bank of London
J. T.lleckenzle, Iraq., Deputy Chairman of Easton Bengal

WMackinnon, Esq ,Mackinnon, Mackenzie, and Co, Cal-
cutta), Director of British India Steam Navigation Company.
H. Nelson, Dm. ;Messrs. Crawford, Comm.vn and Co., London'.
Mons. Picard, du Comptolr d'Escompte, Parts, et du Crdit
Fonder Colonial.
A. M. Worms, Isq. (Messrs. O. and A. Worms, London).

Calcutta—Mears. Colvii;„Jowie, and Co.
Bombay—Mom Remington and Co.
Madras-llemas. Parey and Co.
AGICITII FOR TB• Cesrenterie—The General Credit and Finance
Company of Tendon (Limited).
Beeline—The Enloe Bank of London.
liel.therola—Yews. Fredthelds and Newman.
Ogeeteethe Iwo tom.)-31r. Charles Grant.
Temporary °Meet Lombard-street.
The Byte. of Laud Credit, or - Credit Fonder," has now berm
established in man of chief countries of Europe, with the
uniform malt of profit ra to the oopanies engaged in it,
and great benefit to holders of land. The pelf oif all
them amociations Is the same, vit., the Intervention of a com-
pany whose large subecribed capital, and consequent credit,
enable it to borrow away to the best advantage, se an Inter-
mediary between individual lenders who seek lavestesento on
meetigege, sad borrowers who seek for loans.
Ts, Freneh Credit Fonder has a line share capital, of
which only half is paid up, and is authorised by its statutes to
Wee its own bonds against an equal amount Lent on mortgage,
with a sinking fund for redemption, on thstclus landed securtty.
The security to the bondholder under these circumstances is
ample, represented as it is by the whole nripaid-up capital of the
Company, and all it. Investments and assets, while the profit to
the Shereholders, being the profit on the employment of a huge
capital distributed in dividend over a small paid-up capital to so
groat, that with £lO peid-up the 1:20 shares of the French Credit
y.on• stand at a market value of upwards of E6O.
The present Company is formed, to the belief that, on the one
hand, it will he very profitable to the Shareholders, and, on the
other, most beneficial to India. It Is obvious that our Indian
territories present an unrivalled field for a Company of this de-
scription. Land then Is rising in value with a rapidity quite
unexampled, and the fixing of tenures, the improvement of laws,
and the opening of communications. are fast creating ea elm and
certainty In dealing with it equal to those enjoyed in any cone-
try of Europe. At the same time capital I. scarce, and the rate
of interest extravagantly high, as compared with any European
standard.
In Bengal, where, in the first Instance, the operations of the
will be principally directed, land is held upon a
ZeMr:ay
dary tenure, which may be described so conferring the Ds-
simple of the land in perpetuity, held direct from the Crown, on
the condition of paying a fixed annual quit-rent, which is always
moderate, in comparison with the value of the estates. In
accurate and simple system of registration precludes doubt and
dispute concerning the title to estates, and the first mortgage on
the register takes precedence of all other claims. The principle
of a permanent settlement has been adopted by the government,
and will doubtless be shortly extended to the other provinces of
India.
The land included in the Lower Bengal system is estimated
at a value of more than one hundred millions sterling, and by
the establishment of railways, the operation of irrigation works,
and the general extension of Indian trade mid industry, It will
he doubled and trebled within* moderate number of years. Of
these estates a eery large proportiou are at present under ad-
vances from th‘.af money-lenders, at • rate of 12 per cent.
Interest, besides incidental bonuses, and upon other conditions,
that ale alike unfavourable to their owners and to the com-
munity at large.
With prudent management the results of no Indhin Credit
FonMer eau hardly fall to he even more successful than in France.
considering the wide margin between the rates of interest at
which money can he borrowed in England and lent la India.
The field for operations in India is practically uullatited, and
in no country of the world are all the elements of national pees-
polity, including the value of land, In • state of much rapid de-
velopment. The revenue of the Mate has risen in ten years from
Cth.600,000 to 8.46,121000 a year and the aggregate import end
export trade during the same period has more than doubled, and
Wt year reached the enormous total of E 100,000.000, including
hellion. During the semi period £00,000,000 of English capital
has been invested In railways in India, which are now approach-
ing completion. and will greatly aecelerute the march of prow
WOW.
The benefit to India of obtaining capital on landed security on
reasonable terms, and emancipating the native landed prosier
ten from an exclusive dtpendenoc on native coney-lenders, will
be incalculable : and this lament will be at ecially felt at • time
when the prosperity of the country, the completive of roads and
railways, the sole of waste lands, • he etteasiou of the permanent
settlement, the introduction of an improved enmency, and,
generally, the adoption of • wise and liberal system of govern.
meat, are giving everywhere • rapid 'papule. to Improvement
ORIF.CTS. —The Company will be prepared to grant Loans on
laud, either for fixed periods, or upon teems that will extingelth
the debt dunes( the carreney of the . by the paymeat '
of as annul instalment on account of the ncipal. In addition
to the manual Interest, than conferring on the borrowers the
benefit of an eventual liquidation of their debts.
CAPITAL-111e present capital is fined at ELOOO,OOO sterling,
of which E 2 per share is payable upon ellotmene It L not the
intention of the Directors to eali up more than • small proportion
of the share capital in all. as the successful conduct of a business
of this description to chiefly through borrowed capital.
BORROWING POWEBS.—As a meths to unite the advance,
on the extended made contemplated the Company will Wu*
debentures for ised periods, and healing • fixed rote of Interest,
payable half-yearly in this country: and In order to give the
holders of such debentures undoubted security, they Mil haves
lien on the entire property of the Company, cementing fleet of
the whole of the estates held on mortgage, sod much exceeding
in vales the total of its tiabilities : end secondly, of the meet*
of the Company, in which Ito paid-up capital is Invested, toge-
ther with its large remrve of uncalled capital. The framer:time
of the Company will be conducted free from all speculation or
purchase on theirown account, and maybe regarded as
of the restore of • commission agency between the
lender and the Indian borrower, opening to the latter • com-
mand of capital limited only to the value and security his estates
afford. . . . .

PROFITS.—The profits of a welLconducted business of this
description, in such a field for operations ss India, may he tested
by a comparison with the results realised by the French Cridit
FoncJar and other similar undertakings bath abroad and at
home. The institution named is limited by its statutes to lend
at 5 per cent. Interest, and it has to pay more than 4 per cent.
Interest on money raised on its debentures. The margin of
profit is, therefore, very smalL Nevertheless the French Com.
pan) pays a
um equal
of 16
per tertocent. pere In India
tchs,:ri,ing a
argin
of profit between the este at which the money la borrowed and
the rate at which It is lent will certainly not be lm than 3 per
Pia. 33 that each Cl,OO 000 borrowed in Rug and and loaned
In India will give 636,000 a year towards Mei end no the share
capital, of which it is not probable that more than 1606,000 lout
of the et,000,000 will be called up.
MANAGEIIILNT IN INDIA. - Arrangement* have been made
with the above C,ree leading firms to act as agents in India, so
as to enable the Company to commence business without mine-
(Jemmy delay.
76,600 ihares have been subscribed for privately, and the
reuirining 16,000 shares ma reserved for public subaeription.
Copies of the Nemorandmn and Articles of Aanci•Mat lie for
inspection at the office of the solicitors, Mews. Freshttelds and
Newman, 6, Bank.buildlngs, Lothbury, and at the temporary
• aces of the Company.
Applications to be made In the subjoined form, to the tempo-
, ran Mfiees of the Compan Lombard-street ;or to the °Mem
of the Central (Audit sad Finance Company of London Malted.,
10, Cannon-street.