The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1866-08-24
Loans on Real Estate.

Tie absolute state Of exhaustion in
which the termination of the war left our
people, especially the agriculturists, caused
the more intelligent and educated classes
to look into the question as to how some
relief, some assistance, could be extended
TO them, in order that they might be en-
couragcd, and proceed with their labors
to rebuild their fortunes without being
forced to sell their lands at a sacrifice,
and thus be- turned upon the world home
less ard pcnnilcss to seek new sources of
occupation and support. The considera-
ton and discussion of the subject led 10
no tangible and practical result OF any
advantage to the sufferers. The suSpen-
sion of the judicial tribunals and the alb
solute condition Of paralysis in which all
interests were for the time held, kept in
check all demands for settlement, and the
people went on in their efforts to till their
lands and make support. This state OF
things gave no relief, but only accumu-
lated responsibility and enlarged the
of quiet that has existed is opening the
eyes of the people to the trouble before
them, and to the necessity of providing in
time to meet it. We learn that in many
counties Of the State there are move
ments on foot that show how the public
mind is attracted to the subject. People
are executing deeds Of trust on their lands
to obtain time, and should these deeds be
enforced before the public confidence is
restored by complete restoration of the
Union, with all the equality of the States
under the Constitution, immense sacrifices
must be made, and some of the best citi-
zens Of the State, who never knew want,
will become absolute paupcrs.
This condition of things may we'll occupy
the serious reflections of tho political
economists of the country. 1t should even
command the consideration of the National
Government, through whose act Of aboli-
tion Of slavery without compensation this
state of poverty and misery has come upon
our people.
Among the schemes proposed last Win
ter for aid to the farmer and to real estate
owners of the cities was that Of the es-
Enlistment of an Agricultural Real Estate
Loans Company, and an Urban Real Estate
Loans Company, of sufficient capitals to an
swer the wants and means to borrow Of
the crippled community. The simplest
statement of the principles of this scheme
is this: The company lends money to the
owners Of real estate upon the mortgage
Of their lands, and agrees to hold them
quit of the repayment of the capital lent
upon the steady payment of interest. And
1t is done in this way: If the sum borrowed
be loanedior torty-seven years, the interest
charged would be eight per cent.-six per
cent. interest on the principal, one per
cent. to the company for expenses, and
one per cent. to so to sinking fund,
which compounded, grasses or extinguishes
the debt in forty EIGHT years. For shorter
periods the interest would necessarily be
higher.
This system has prevailed very much in
the States Of Germany, and has worked
wonderfully we'll there. One of the best
tests Of the successful operation of the
system was the general adoption of it, and
the extraordinary good credit of the bonds
OF the loan company. they being in times of
pressure some twenty per cent. better
than government securities. The test of a
long series Of years in that part of the
globe has completely established the
utility and beneAcent influence of the sys.
tenn. BY it the poorer classes were en-
sbled to become owners of the lands that
had gradually passed out Of the families Of
the sgsls nobility under the influence Of
the modern systems Of economy and in
dustSy, modified a. they have been by