The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1897-05-29
NEW BANKING SCHEME PROPOSED
"A Plan Based on the Credit Foncicr
OF rance 60 Be Submitted
Il Congress-.

W SoASASeS.
New York, May 19.-John r. Dos Pas
sos of this city will ask congress with
in ten days to give it's sanction to a plan
which. he thinks, Will put an end to the
discomfort in the agricultural regions
of the south and west that found ex-
preston IN the last presidential cam
paign. He intends to secure the intro
duction of a bill chartering the Loan
and Mortgage Company of the United
States, modelled after the Credit Fon-
cier of France, and similar institutions
which have been tried with success in
other European countries. Mr.. Dos
Passos. after three months of wcrle has
just completed the measure containing
the charter.
The administration knows nothing
about the details of the plan from me-"
said he today, land has nothing to do
with it, simply because / did not have
the proposed act completed until Sat
urday. AT the proper time it will be
brought to its attention 1t is a plan
II l expect ii to be cordially and
heartily supported by all parties when
1T is presented to congress. No. 10
banker, financier or capitalist of New
York or the west has any interest. di-
rect or indirect in the proposed com
pany.
THE plan needs no support from the
banking financial interests. except
their good wishes and sympathy, which
am sure they will give, and the right
to subscribe for the stock. The Loan
and Mortgage company is to be essen
TALLY a company of the people and ev-
cry cent contributed to it is expected TO
be derived from and its profits paid to
the people.
so far have met with almost uni
Nersal sympathy from those to whom I
have disclosed the plan, and the two
able articles which Maurice L.. Muhle-
man of the treasury department has al
ready published have been equally we'll
received"
Mr.. Dos Passos explained that one
purpose of the company was 60 enable
farmers to borrow money at low rates
OF interest. 1t is proposed to establish
the company under a special charter
from the government, with a capital of
500, 900, 600 in shares of SO each. If pos
sible the whole amount will be sold in
such a manner that no one person shall
hold more than 81 900. The
Will bind itself to advance at least $25,-
O0o,OOO to the government at current
rates of interest on demand The gov
shall have the right to appoint
its president and two directors and an
auditor, who shall make monthly re-
ports.
The company will be authorized to
make loans on improved real estate and
agricultural staples, not exceeding so
per cent of the value, determined by APP
v,,.atca,. Sow, l,,.,. ,,a+ .,y-a.l;.-. cr.-L.
years, lepayable in full at the end of
that time, or for periods of from fifteen
to ~seventy-five years. ~repayable in
quarterly payments. including princi-
pal and interest.
The rate OF interest on long-term loans
viii be $50 per cent. which will wipe out
the debt at maturity in the case of I5-year
loans. The actual interest payment is 4.G5
per cent.
The company shall have power to issue
$2,G00,O0O,0W in S,65 per cent bonds, in de-
nominations as low as $40. These may be
issued to borrowers in lieu of money and
are expected TO circulate as freely "a
money. A reserve fund of $3.50, 900, 90 shall
be retained.
The company shall lave power to do a
general banking and trust business, and to
own and operate warehouse and grain ele-
vators.
Mr.. Dos Passos thinks that the effect OF
these powers would be to supply needed
currency. enhance and fix values and en-.
courage thrift. The plan. as outlined
above was shown to Secretary Gage of tho
treasury department by a reporter in
Washington.
ut seems to be the dream of some i'm
practical man" said the secretary. u
could not pass judgment in detail upon it
without reading it at length. but a .xlance
at its salient features seems to if&cate
that there is nothing in the scheme to
commend it to either legislators. or fnan-
ciers."
Has such a scheme been presented
to the Administrations was asked.
Not to my Knowledge responded
Secretary Gage. Il do not believe ii
would be considered for a rroment."
dc you think the plan would receive
the sanction of congress?'
Il have not the slightest idea that il,
would" he replied.
Representative Walker of Massachu.
sets, chairman of the committe. on
banking and currency i'll the house, also
ridiculed the credit foncie1 plan. as did
many other representatives. who said
the proposed charter would not be
granted by congress.