The republic. [volume] (Washington [D.C.]) 1849-1853, 1852-03-23

eight closely printed columns OF the Monifer, and
reducing them to their lowest terms, you discover
the following simple system: The banks take
mortgages upon property, never lending, how
ever, more than half its appraised value. They
issue stock, founded upon and secured by the land
or buildings thus to them mortgaged. This stock
bears four per cent. interest, and will be an
object of investment and speculation like any
other public stock; the mortgagec pays six
per cent. interest on his debt, and the differ
ence between per cent which the company
pays, and per cent, which the company receives,
or per cent. is to be appropriated after the ex.
penses of the company are deducted to extinguish-
ing the principal One.half per cent, il has been
found by experience, will cover all the expense of
the CESSATION OF a society of the kind, leaving / !
per cent year for the gradual absorption of the
sum borrowed. OF course this one and half per
cent will be in its turn invested and thus the
principal, being placed at Il per cent. year,
compound interest, will bo cxtinguished in forty
years The mortgage recovcrs his estate, there
fore, in forty years. II returns to him u2incum-
bcrcd, free from all liabilities, at the expiration OF
that period, reverts to his heirs. He has, to all
intents and purposes, been paying but very rea-
sonable rate Of interest; while, almost without his
knowledge, his annual instalments have been gnaw
| ing away at the incubus that brings most mort
| gagecs TO ruin. Ii there were disadvantages
connected with the new law, this would be. in few
Words its operation and effect But It meets with
| stout opposition, on various grounds 1t is con-
tended that the stock of such societies will not be
| regarded with that confidence, and inspire that
security, indispensable to their To this it
is replied that system precisely similar has been
in existence for fifty years in PolandS Prussia. and
Germany, and that not only in iimes of peace, but
at periods OF trouble and national dsaster-such as
theoss Of the battle of Jena for instance-the stock
| Of the mortgage banks was uniformly higher than
| tho government funds. Again, it is objected that
| the new law facilitates and encourages the mort
| gaging of property TO such degree that the
swamping of immense cxtcnts of land is almost in
evitable. Now, it 10 hardly to be supposed that
any would resort to serious means of relief
| unless he forced to doso. If a man must have
money he must have it, and the law offers him Pc
cuniary assistance on vasl more favorable terms
six per cent with the certain reversal of the estate
mortgaged in forty years, instead of nine per cent,
with almost certain foreclosure in ten. singular
argument against the decree appears in the Uni
vrs, the organ Of the Jesuits. This journal main
tains that provincial landowners and farmers
will never be able to pay the six per cent. interest
demanded by the law. How then, it may be asked
could they ever pay nine per cent? The writer
|
| says:
| 'The example given by the Moniteur supposes
| a landowner, receiving upon his estate worth
| 100000 half its value, so 900, from mortgage
| bank. He will be obliged every year, under pen
Atty OF foreclosure, to pay six per cent 30O0f to
| the bank. To any person acquainted with the state
Of our SOIL and Of agriculture, evident that
this landed proprietor will be unable to fulfil his
| engagements. The extreme division of pro-
perty lessons the produce of the land-l00 ,0O0f.
worth not representing income Of over 2,000f II
ia with such revenue that the proprietor ia to live
and pay 3,00ef. to the bank. The system may do
| for Prussia and Poland, but France is not in the
same condition. The institutions which are suited
TO large estates not suited to small and it
| ID not prudent to transport into France laws and
| Legislation which have no root there"
This is argument against the principle of the
dccrce it only shows, supposing its figures to be
correct, that there are owners Of land, farmers,
cultivators, &c, in France, whose property is too
poor, too sterile, ever TO be mortgagcd. 1t shows
| that these gentlemen better off under the
new regime than they have been under the old one;
| but it does not show that for such support
themselves and their families, and pay six per
cent. besides, the law is not an amelioration OF
| their condition. At the Bourse, however, it meets
with no favor An imitation of the currency, over
spec uaton and all the disastrous results accruine
| from fictitious prosperity, are foretold as III
speedy consequences. No one doubts. however
the good intentions Of the trainers of the law
and among that class of the population that either
has mortgagcd or expects to mortgage, M Bona
parte receives credit and thanks for at least hi:
well meant interference with the hard conditions
| Of capitalists and usurers.
The Bank Of France, by decision made on the
Sd of this month, reduced its rate Of discount
from four TO three per cent. From the creation o.
this institution, in 1903 until now, the rate Of dis
| coupt has been uuiformlv four Nor cent except
for period in 1877, when the heavy importation'
Of breads tuffs and the consequent drain upon iti
reserve Of coin compelled it to raise the rate to v,
| per cent. The large merchants Of France have
| often memoralzed the directors Of the bank on
the propriety of q reduction, considering the gTea
| increase in the national wealth since the com
menccment Of the century. The subject had beer
often discussed, but never met with favor. Th,
bank has now, however, yielded to the increas
| ing solicitations, and in view OF the influx o.
the precious metals, and following the example o.
the Bank of England, reduced, and after tho
fifth Of this month, its conditions Of discount
There IL but opinion upon the effects likely Il
result from this
An important decree, affecting the interests o
| the French navy. has also been signed and sealed
The Minister Of the Marine, in report to the Pre-
sdent, sets forth that "as the maritime power of
| naiion Consiss eSseutaiJ IN Nno hno quai
| ity OF the vessels and cannon it oppose to an
enemy" and "the veritable purpose of his de
partment lie TO create and maintain fleet capable
OF making the independence and dignity of tn,
French flag respected the seas" 1t ia advisabl,
| to reorganize the mechanism of his ministry, in
view to simplify business, facilitate execution o
orders, and obtain unity Of direction. lie recon
mends such changes ne shall concentrate in hi
own hands the movements of the naval forces, tn,
fitting out and dismantling OF sbps, and the in
structions to be given to the commanders, where
by may be obtained "tbat UNITY of direction which
adds to force and that secrecy which is often o
tho best conditions of its exercise decree from
the President giving effect TO the various recon
mcndations OF the minister, follows the report
You will remember that wrote you fully som,
time since of the intention OF the French govern
: rnsnt TO rocast and recon the whole copper
| repcy. The London Chronicle affects TO sec in
this proposed measure Z" cloud yet no bigger than
a mans hand that hangs the horizon Of Eu-