The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-06-02

l Nc Aito La os w 1SulLuIdl bOClculSSs
4: Provincial 'Boden Credit Anstalten.'
The first two classes are worked in the in
terest of the lenders, the third and fourth
in the interest of the borrowers. As a rule
all these institutions do a successful bust
ness and enjoy high credit. TIL Austro-
typical institution, lends money on mort
gage at "A per cent interest and u per cent
amortization, making altogether 81 per
cent. for forty-one and Il half years, and
"A and "a per cent. amortization for fifty
years. Both these loans are made in scrip
bearing four per cent interest, and at pres
ent stand at par.
Several establishments for lending
money on real estate have been founded in
Belgium on the initiative of private indi-
viduals. They are all limited joint-stock
companies and act in the common interest
of borrower and lender.
1.-The Credit Foncier is the sole national
bank of real property in France. 1t is I'M
der the supreme direction of the minister
OF fnance, and has an organization similar
to that of the bank of France. In addition to
loans on property, it IL authorized to lend
money, not upon mortgage, to departments,
communes, ana agricultural associations.
The capital has been gradually increased
until it now stands at 81. OU0 ,O0O. Tho
Credit Foncier h. materially lightened
the charges of the debts weighing on prop
e%rty-in this sense, that it only asks for
1856 per cent interest, while the rate of
interest paid by property at the time of its
creation in 1852 WAS from eight to 10 per
cent. Upon el35. 900, GOO lent since its
foundation on real property, the soci-
ciety has been forced by adjudication to
purchase for 4720,O00 estates which have
remained on its hands in consequence OF
tho non-payment of the SUM lent upon
them. This Is relatively a small sum in
comparison with the amount of the mort
gage loans of the society,
I'm Germany the 'Landschaften' are 4
group OF institutions established and ad-
mlnistered solely i'll tho interests of the
debtors, and there are mortgage companies
of the creditors. Neither class has any
state guarantee, but they are both under
state super vision.
I'm 1861 it was ascertnined that real
property in Italy Excluding the Venetian
Province and I4atium, not then united to
the kinadom) represented a value of 81
WS,OOO,OOO yielding an approximate income
of e4o,320,0CO, hardened by el69. GOA, 900
of mortgages. That is to say, the mot
cages amounted to one-si1th of the
total value of the property. The mortgage
banks had granted up to Dec. 81. 1861, loans
for legs than e4,o0o.ooo. The average ratio
of interest fer northern Italy, including ex-
penses, was then calculated at eight per
cent, yielding II total annual sum OF ei3,-
$4,000 for interest. lmposts and taxes
amounted to eli, .240, GOO; therefore,, out of
the income yielded by real property, only
.4l5, 100000 remained in the hands Of pro-
prietors, not including G96.0O0 spent in
notarial fees, brokerage, valuations, etc.
In view of the difficult position in which
real property was placed, attempts were
made 70 establish an institution ON tie
model of the Credit Foncier of France. but
these failed. The idea was next entertained
of utilizing the existing mortgage bnnks,
some of which dated back to the sixteenth
century. In 1856 eight of thess institutions
were accordingly apportioned zones for lend
ing operations. Their action having proved
insufficient to meet the demands of landlords,
although they had entered upon agreements
TO- n sum of .el3, 1884, 600 up TO the end of
1855, a law was passed abolishing the zones
and authorizing other companies to trans
act mortgage business. Mortgage %assooia-
tlona among proprietors were also per
mitted. but none has aver been formed. A
still later law WAS passed in July. 1890. au-
thori2ing II new Real Credit bank with Il
capital of $4,000, 900 and exclusive privilege
for the whole kingdom, and it is stated that
steps are being taken to put this law into
force. The rates hitherto charged have va
lied from four To five per cent.
Switzerland Possesses two classes OF
mortgage b~nnks-stato institutions and
others partly private and partly puhiic.
Savings banks also make advances on land.
The Iiernsse Mortgage bank charged five
per cent. twelve or thirteen years ago. but
it has since reduced tho rate gradually to
four por cent, and the other Real Credit
banks have been obliged to follow suit.
Mortgage banks exist in the majority of tho
Swiss c%antons. aud they are said TO render
Immense services to agriculturists."