The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-06-02
MORTGAGE BANKS ABROAD
Their Methods in Austria, France
and Italy Described in a
London Paper.
But Very Few Cases of Default
Have Ever Been Re-
ported.
The Interest They are Able to Obtain
Some of the Details of Their
Operations.

At the request of the foreign office, the
English representatives in the principal
countries of Europe have prepared reports
respecting existing institutions for making
advances on real property, from which it
appears, says the Pail Mall Gazette, that
'the owner of land appears to be very gen
orally afflicted with impecuniosity, and to
need protection from the usurer quite as
much as the landless. In Hungary, after
1S4S, when the land was emancipated and
the rights of the mobiles over the peasants
curtailed, the owners of large estates found
themselves in serious difficulties. They
could no longer employ forced labor, and
they were often without capital to purchase
free labor. AS the demand for capital arose,
little or none was attainable. There was
considerable hesitation in advancing
money to proprietors in q country so little
known as Hungary was at that time, and
although a few of the greater mobiles were
able to obtain loans, the smaller proprietors
were not in a position to do so.
'In 1867 the National Bank of Austria
took steps toward assisting the difficulties
of the landed proprietors. but the first
efforts were not very promising. Several
of the leading landed proprietors then com
bined together and inaugurated an ~institu-
ton which opened up a new era in Hungar-
ian agriculture. The Boden Credit insti-
tute was established in 1863, with a nomi-
nal capital of Gt39. COO. 1t is not a JOINT
stock company worked for a profit, but Il
patriotic Undertaking whose object is to
enable landed proprietors to obtain loans
on safe and easy terms. The institute docs
not actually lend the money, but procures
the loans at far cheaper rates than the in
div;aual is able to obtain them for himself,
and at the samo time supplies tho lender
with the necessary guarantees and security.
In 1861 the.interest on capital charged was
BIZ per cent, and the total, including amor
tization, 694 per cent. The interest on cap
ital has now been reduced to four per cent,
and the total annual charge to five per
cent.
1.-The number of instances in which de-
fault of repayment has occur ed is insight
hcant. M out of "A sum of nearly eight mil
lions sterling the arrears do not amount to
more than G25,0 600. The money is raised
by the issue of bonds of 100. 1000 and TO-
zoo HORNS, bearing interest at 4 per cent.
They arc repayable at par by drawings, und
must be withdrawn within n period of forty
years and six months from the date of their
Issue. There are other institutions in Hun
gary which make advances on real property
on similar or VARYING conditions. Author
tiles do not ngfee Ms to whether the indebt-
edness OF the land has been reduced or in
creased M Il consequence, but il In admitted
that the old usurious syetom has disap-
peRred. and TINT tho money borrowed has
been sunk in improvements. and il, there
fore, not TN uuproductive charge on the
land.
"The institutions in Austria for granting
real credit nra of four kinds: |. Bank and
and joint stock companies iiaensed by gov
anne to lend money on mortgage. 2.