The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1877-01-27
THE WEEKLY INTCaLIGExCER.
County and City Official Press
Saturday. January ~, 1877
A DESIRABLE INSTITUTION

lishnient ia tha: State of a mortgage
bank in the interest of the farmers
Tbis i. unquestionably ore OF the most
urgent NEEDS If California. aud the
founding OF such an institution in til. $
Territory woald prove the corusr-s.one
VI oar prosperity and advancement. Ia
tbs, career IF Statehood. The fou,,dl-
,so. of the wealth 81 every state Is asri
cni.nrs. There Is no perlnanency, no
social syumetry OF completeness where
agriculture does not flourish Society
i. at bes,. only nomadc when not an-
ohor.d TO the soil by ,illage. There Is
10 progress that tells with such con
scquen,ial' leverage upon ultimate
muaicipai aggrandize,nent as progress,
in the rural precincts.
The writer. wh, evidently knows
whereof he treats" Celebrates hi. plan
in the following convincing arguments
and facts:
=. Farming differs from most indus
tries by reason Of the long period re-
uuired In its operations rendering long
loans an imperative necessity, Bank
discounts Tor 30. 60. % days. unless
they are repeatedly renewed, do Rot
satisfy their wants, but che huctuaiing
nature of deposits and the sensitivcn.'.-
Of confidence compel the bank 10 make
short loans. These commercial banks
perfurm an invaluable service TO So
Getty. but they are inadequate To meet
the demands of the landowner. Col
lateral banks Of course continc their
operations 10 stocks, aud the savings
banks. though they possess extraordi-
nsrily large deposits, generally enpioy
their money in the city. leaving tn
rural borrower upc.red for. We want
hers system of agricultural credit IT.
sembling the best systems established
on the continent Of Europe At the
present time there are sixteen ipstitu-
tions of this kind ia successful opera
ton In Germany. Th.ir issue OF obi
ga,ious. which bear tour To five per
cent. interest, amounts in the aggrc
cTadst ii.ssilTfions arc n, -acttSr1tYlrc,.'
with the correct principle OF public
economy Is attested by their long exi,-
t.i,ce and success The CredN Foacie,
bank. originated III the brain OF Mr.
Wolowski. the greatest economist OF
his time and TO It's operation il attri
bu,ed much of the recu ,,crative power
exhibited Ivy the French people. Nc
I.eod. the econom:st, s.ys IN his "Prin.
cipies of Economy aud Philosophy
that tbcs" institutions have the most
remarkable effects in promoting tn.
agriculture Of the countries they hav,
.b.en founded in Their obligation.
have maintained through all crises
monetary, war and revolution, a steadi
ness of value far beyond any other pub
lie securities Whatever, either govern
ment or commercial"
"A company embhyiDg these idea
might be organized to accomplish I'll,
double purpose of xffording remune
ratlvc prof, 10 stockholders and pro.
noting real estate credit Its capital
would be locked up III mort Cages based
upon property Of two or three fold 81,
eurity, aud bearing tho current rate o!
say ten per cent. interest. Its capital
would he set free by issuing and selling
its own bonds based upon its fund Of
mortgages guaranteed BY its capita
stock. bearing say six or seven per cent
interest. After The first ins,allment al
the o0mpany's bonds were sold. th.
money could be used 10 repeat the ope-
ration as often AS might be deemed al
vissble. The margin between the rate
obtained on mortgage loans aud tina,
paid Oh tho obligations would constitute
the compaay's profit. There are three
companies Of this kind in operation il,
New York. and can speak from per.
sonsi acquaintance when l pronounce
them successful in every respect. The
simple question to determine the feas,
hiiity Of this plan is whether these
land debentures would command the
confidence Of investors. aud this in N
cpinioa would alone depend upon the
character Of the management. MANY
iirst-olass English bankers deal in
American commercial aud railroad
securities. and experience would I'm.
ds ubseiiy show that under assurances
of proper management. . financial or
gsniation designed Ia lean money up.
on our fertile valleys could command
their cooperation in transferring To US
= portion of that loanable fund which is
Now casting about for safe and remu
nsraiiSe investment. This opinion is
fortified Icy the success Of the New
York companies. and by the enterprise
of the u : Mortgage Bank, limited.
capital. 81 .o0oo recently incorpo-
rated by the British Parliament. de
signed IL operate IN the Mississippi val
ley.
The default Of 500, 900, 600 railroad
bonds, the rcccn, decision Of he mites:
Skates Sopreme Court invalidA.ine
many municipal honis. and the total
collapse os Turkish aud Egyptian se-
casstics have narrowed the field for sst
isfac:ers .nyestment until demani for
real estate securities has teen pro-
iucSsi The funding operations Of the
treasury have reduced rates on govern
men, bends. thereby discourag,ns the
diversion Il capital into the highly IA
vosei securities No reasonable tioub.
nesd be felt as 10 the success cf such an
an institution as We have indicated. If
organized under proper auspices
IT, The shin Dsshiny waxa MAD