The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-05-28

u
Pine street, said to New York Press
reporter
II believe It possible for loan and
mortgage company. managed on the
lines proposed Tor the Credit Fnncler for
America as described in The Press. to
do profitable business The theory Is
ull fight. but I fear the scope as laid
down In the charter 90 be introduced In
congress Is too broad. though every
thing depends on the management
with conservative management II
might b. made successful.
Ordinarily, appraisements OF value
~ property FOR loans are made too
NOR. THIS company proposes TO make
leans up to 50 per cent Of the appraised
yAlu, Ny company makes loans only
90 40 per eelt OF the appraised value.
belevs some Institutions make loans
only up 20 one-thlFd the appraised val
ne. Yet Il often happens that the loan
company has to take the property upon
which money w5s lent.
ut Is said that the real estate which
the Credit Foncier OF France mas peeh
obliged TO take Is snail-a small frac-
don OF per cent. That may be true.
hui I do not know enough about the
company to discuss H.
FrsquSnt PsymSntS.
However. in connection with the
purpose1o lend on 70 50 per cent OF the
appraised value. the central Idea OF the
plan-the amortization OF the loan-is
important. The provision for frequent
payments on the principal by the boz
rowsy IL an exceedingly good one, as
mas been demonstrated by the eNper-
iepce of our building and loan assoeia-
tons The frequent payments con-
sanity decrease the ratio the principal
Of the loan bears 20 the value OF the Sc
curlty. This Is not a new PRINCIPAL It's
value has been demonstrated tuily.
''rhc provision In the charter for the
appointment ~ the United states gov
eminent OF A supervising oftieer and an
auditor IS good one, so FAR o. the eN-
animation Of the accounts OF the COM
5ngX. AZ lie main and branch offices Is
concerned. hut Il would not be practic-
abIe Tor any supervision 10 determine
whether the loans were properly made
The examiners Or supervisors could not
examine the real estate Which secured
the loans. hut only the records OF the
loans Besides. supervising officers. ex-
cept ia rare INSTANCES would not De
competent to give opinions on rear es-
tate values. To BE- good supervising
oficer, a man should be . 5000 aS-
countant: the lpprlisinc OF rear estate
isa very dIRerent line OF business.
"Rut. as I said, the theory IS all right
wi;h conservative management mueh
good might be accomplished.
Inauirirs Pouring In.
A, the temporary Offices of the projeo-
tors Of the big institution. in the new
Cable building. In Broad street, letters
Of inquiry continue 10 come. showing
that people. especially OF the south and
west. are studying the plan. one man
has applied for appointment as repre-,
sentative or the company when u snall
have been chartered He n Jot VI.
Wilson. OF HarrlsOnVllc, Missouri He
Il have become interested in the eff
Cort 10 organize a great landed credit
company believe you have the Key 70
me future money system Of this coun-
try. The farmers would subscribe no.
orally TO such company; ior they oe-
lieve they are being robbed by the large
money lenders. About half the farmers
~ NjssoirI are borrowers. and at the
present rate OF interest they always VIII
II nave been lending money for tif-
teen years, and have some loans now on
my books that were made htteen
years ago, the borrowers having kept
up the security and paid their Interest
promptly. but being unable to reduce
the principal.
II am lending money for an eastern
Insurance company. That company mas
lost not a dollar OF principal or interest
on money lent In this (Cass) county
and adjoining counties.
Il want 20 better the condition OF my
peopIe, and II you succeed. az OelleNe
you will. 10 organizing your company,
would like to represent sou In this part
Of Missouri. 1 am forty miles south OF
Kansas City. As to my standing re-
fer you to John Urton. county treasur-
er: Thomas Maxwell county clerk; the
Allen Banking Company, ana the Cass
countV Bank, in which latter am n
EtocIshoIteF and director, OF 70 any
business man or Arm In this county"
RsIisf6Or FArmsrS.
Here IL another letter which Is typical
Of many on hle:
'I have given some thought to the
subject Of a Credit Foncier for America.
II farmers OF other countries have been
relieved by such institutions, why
shouId American farmers suffer longer?
You will and western farmers alive to
such measures and many OF them far
better Informed regarding finance than
many OF their wOuld-be teacners-the
bankers, insurance companies, etc.
81 shall watch anIlously 10 see "hat
progress the idea makes. And II al any
tlFos can be OF any service to you as
to the feeling among the farmers,
ehaIl be pleased to Eerve you. We put
little confidence In the ordinary news
paper reports and western farmers are
not swayed by them TO any consideraoIe
extent ]. +. MA$EY.
Pomona, Kan, May 20. 1897.
Case for Example.
D. Campbell OF sprout Brook, Mont
Eomery county, n. Y, writes to The
Press as follows:
ri a farmer should borrow $1,000 OF
the projected Credit Foncier Company,
giving a mortgage 70 run fifteen years,
what amount would he have 10 pay
yearly to have the mortgage cancelled
when due2"
The farmer would have to pay S1O3 30
every year for the fifteen years in or
der to have paid on his loan OF LOCO At
the end Of the period. OF the Hl03 90,
So % would be for interest, profit 20
the company. expenses and extra re-
serve, aud the balance. vol ~. would
be for tho cRtlnHuishment or "amort-
izatIon OF the debt.
The shorter the period OF the loan the
greater the payment for Amortization
on loan of 81. 900 for thirty years. the
total annual payment would be only
81 2o.-3j2 20 going 10 the company as
Interest. profit, expenses and extra re-
serve, and ti9 going 70 pay on the $1,000.
For loan OF 1900 for nifty years, the