The Express.
London, England, 1852-03-01 00:00:00

FRANCE.

PARIS, SATURDAY EVINIING.
The decree upon establishments of credit fonder
appears in the Meadow of today. In orate clearly
to explain the nature of this measure I must premise
that pr.oprilti, fanciers corresponds exactly to our
expression " real property." The object of the pre-
sent decree is to relieve both the lender and burrower
on this description of property from their actual
embarrassments, and place them as nearly as possible
upon the same footing as persons engaged in COM-
acre* and banks. If a tradesman wants money he
gets his bill discounted by a banker, who is
enabled, through the negotiation of the bill,
to replace the fonds which ho advances ;
while the saleable nature of the property which
ultimately guarantees the payment of the sum repre-
sented by the bill, tends greatly to facilitate credit of
this kind. lint this is not the case with the credit
which is founded on real property. The capitalist
who lends upon the latter security buries his money
for six or eight years as the cue may be, for in
France mortgagmortgage.aro rarely created for a longer
i term, and theinterest demanded is of course in
proportion to the inconvenience suffered. On the
I other hand, the proprietor of the house or field
who borrows the money lays it out in im-
proving his house, or rendering his field
more productiNe. Thus the money disap-
pears, and its fruit in increased rent or harvest
must be waited for by both borrower and lender.
Now, the object of the present decree is to do away
with the inconvenience suffered by the capitalist, by
creating a representation of the capital lent in the
shape of !titres de gage, which are at any moment
convertible into specie, and represent precisely in
sciatica to real property the same thing as bank-
notes in relation to commercial property. The in-
convenience to the capitalist of lying out of his
money being thus removed, money may of course
be procured by the owner of real property
upon easier terms; and those who are now
the victims of usury will be able to consolidate
and pay otf their oppressive mortgages by loans for
which they will pay 3 per cent. interest to the esta-
blishments of credit
.fancier, and 2 per cent. as a
sinking fund. I ought to add that these establish-
ments are to be private. Having premised thus much
with regard to the general tenor of the law, which
corresponds very nearly with the institutions for a
similar object in Prussia, I proceed to give the chief
features of this decree. Societies of credit Ander
may be authorised by the President, after consulting
the Council of State. These societies shall issue
lettres de gage, a kind of banknotes, which in-
stead of being guaraweed by a deposit of
specie, are guaranteed by • first mortgage
upon real property of at least double the value. The
state, in order to aid these societies, will take kttrea
Jr gage for a sum of which the maximum shall be
Reed by the law of the budget. The loans can only
be made after the formality of the legal clearance of
the mortgages.. The borrower pays off his debt by
annual instalments. The annual instalment com-
prises, let, the interest, which cannot exceed 5 per
cent.; 2nd, the sum affected to the sinking fund,
which cannot exceed 2 per cent., nor fall short of 1
per cent.; 3rd, the expenses of administration deter-
mined by the statutes. The /dives de gage are to be
nominative. or an partear. Those which are no-
minative are to he transmissible by indorsement. None
can be created fur a less sum than 100 fr. They are
to beau- interest to be paid off each year in propor-
tion to the payment of the sums affected to the
, sinking fund. Such is the substance of the three first
chapters of the decree. The Ist section of the fourth
chapter relates to the formalities for clearing off the
mortgages. The 2nd section relates to the means of
execution. In case of non-payment of an annual
instalment, or of deterioration of the property, or of
any. other cause indicated in the statutes, and ren-
&rung the entire capital definitively exactable,
the society of credit fancier may place the
property on which the loan is secured in
sequestration, may administer the same, raise the
rents and apply them to the discharge of the annual
instalments overdue, or of the expenses, or prosecute
the sale thereof. The following articles are relative
to the formalities of the sale. The sth and last
chapter stipulates the guarantee of the societies by
the Ministers of the Interior and Finance, and re-
serves for the statutes, and reglenerne etadministra-
tion publigue the provisions of detail.

It may be said in conclusion of this measure that
in the normal state of affairs it would be at-
tended with considerable benefit, but in tritium
of crisis and convulsion, when property is
liable to great and sudden fluctuations of value,
the creation of a vast quantity of paper in the shape
of leltres de gage will be attended with great risk.
Although these represent property of double the value,
it may easily happen that the margin of security will
shrink sou to ruin those who hold them. The Maison
Doriv, on the Boulevards, and the bazaar Bonne-
Nouvelle, for instance, were sold lately for less than
half their value. The notaries complain greatly of
the new decree, which will take a great deal of busi-
ness out of their hands. The chief difficulty will bo
in induce people to invest their money i■ knees de
pp, when they can get five per cent. for their
alpha in the most convenient and sure of all in-
neinsets, the public funds, and seven or eight per
ant in railway shares.
The AsserribVe expresses anxiety at the immense
ilskifitiss incurred by the state in the recent railway
ansessiank and fears that tho creation of so many
tales three is more than the market can support and
Void to a financial crisis
state of the Bank of France, as shown by the
returns for several weeks past, attracts much atten-
tion. Its unproductive capital accumulates to an
enormous extent, while its discount business died-
niahes in almost an equal proportion. Last week
shows a diminution of upwards of three millions of
francs in the amount of bills discounted. The feel-
ing is general that the bank has become nearly use-
less for the purpose for which it was instituted,
namely, to give assistance to commerce. Bigoted as
the directors are to their accustomed routine, they
cannot shut their eyes to the fact that their
system has created a rival establishment, the
" Comptoir " of discount, which is beating them
out of the money market. This establishment gives
from 2 to 3 per cent. interest on deposits, and dis-
counts at 3 and 31; while the Bank allows no inte-
rest on deposits, and has hitherto rigidly adhered to
its minimum of 4 percent. for discounts. Accordingly
the "Comptoir" at this moment holds a larger amount
of commercial paper than the Bank. It is positively
stated that the Council of the Bank on Thursday
seriously discussed the question of reducing their
minimum to 3 per cent. No decision was come to;
but in the actual state of things the Bank can hardly
recede from a reduction. An example has already been
set at Havre, which will have a great effect. The
Havre National Discount Beak intends to modify its
rate of discount from the Ist March. It will reduce
its rate to 4 per cent., and 1-18th commission on all
hills on Havre from 6 to 103 days date, on Paris
from b to 90 days, and on towns where the Bank of
France has branch establishments, from 12 to 90
days. But the reduction of its discount alone will
not suffice to draw business to the Bank of Frans*
upon a large wale. The practical operation el ills
rule of requiring three signatures to a bill is, Ant
solvent tradesmen ate often driven to pay 8 and 10
per cent for money, from inability to comply with
the severe conditions of the bank. The " Comptoir"
is satisfied with two signatures.
100 prisoners from Biignolles arrived at Toulon on
the 20111, and were taken to Fort Lamalgue.
General Mersa, commanding the state of siege
at Avignon, has closed the '•cerele" of the Amis do
l'Ordre.

M. Canteloup, the barrister of Auch, who was set I
at liberty at the beginning of the month, has been
again arm steeL
The President has been slightly indisposed during
the last two days, and has nut left the Elysi.e. He
has been suffering from an attack of rheumatism.
It is said this evening that he is better.
.1t the Bourse the Five per Cents. rose 15c., and
closed at 103.70; the Three per Cents rose 25c.,
closing at 65.65. Bank of France shares fell
2.50. Railways were firm, with a small rise in
many instances.
A Boulogne correspondent writes:—" Boulogne,
Feb. 29.—You could not imagine there was any
election going on in liou:ogne, so quiet is everything.
The government candidate will he returned."

Bux DAT EVININO.
This being the day appointed ts• tho election of
deputies to the o,rps Leguilat if, the polls have
opened in the nine different electoral districts of