The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-18
SCHEME OF FINANCIERS
PROJECT THAT WILL REQUIRE A
HUNDRED MILLIONS OF CAPITAL.
Company SOmeN at Similar TO the
Credit Foncier of France That pro-
poses to Lend Money TO Farmers.

NEW YORK, May 17ACongress will be
asked within two weeks to grant charter
to financial institution which expects to
exceed in comprehensiveness and import
ance the famous Credit Foncier of France,
according to the press. It's prime purpose
is to lend money to the farmers. especially
of the West and South, at rate almost
half that they are now paying.
The system upon which the institution is
to be managed is to be similar to that upon
which the Credit Foncier is managed, but
improvements on that system are planned,
based upon the principles of the best
known and most successful of the national
building and loan associations. In addition
the charter will authorize the company to
do general trust and banking business
within we'll defined limits the object of
this branch of the business being to give
farmers short loans on crops and the more
imperishable farm products.
AS projected it would be the greatest
financial institution in the world. Its cap
ital would be $100,0OO,OOO. 1t may. under the
charter as drawn, do mortgage and loan
business of twenty times that or 81, 900 O00,-
00O The saving in interest charges to the
borrowing portion of the country is put at
3lVV,VVV,pVO q year. All LnOSe VINO listened
to the arguments advanced in the recent
campaign will comprehend what that
means.
There are behind this institution twenty
or thirty of the bestrknown and most pow
erful capitalists and financiers of America.
They have unfolded their plans to President
Mckinley and Secretary of the Treasury
Gage, and say they have their Endorsement
Indeed, they say the way for the granting
of the charter has been paved already and
that leaders of all parties in Congress are
committed to it, The most important inn
mediate effect of the chartering and oper-
ating of the new institution is expected to
be the wane of the power of Wall street.
The money changers of the street who for
many years have laughed at the warning
finger of the Almighty as symbozed in
old Trinity will find 1t their doom. Some
OF the most prominent figures of the street.
are clamorlng to get into the company.
John X. Dospassos, the lawyer VINO per-
maps more than any other is familiar with
banking and the ways of Wall street, has
the charter for the new institution in his
Broad-street office He refused to give the
names OF any persons associated with him.
lie declared, indeed, that he did not want
any New York bankers in the institution.
He wants, he declares, the mechanics the
artisans, the laborers-the people--to be-
come shareholders. He says the common
people will subscribe for the $780, 00O, 600 of
stock twice over They will leave the saw
will pay them better But >" said Mr. Dos
passos. If the >ople do not come up and
subscribe FOR amount, as | confidently
expect them to do, then there is a syndi-
cate ready to take the balance" But he
would not say who are in the syndicate.
III Is known however, that ten men are
ready to take $50,00O.000 of the stock.
Part Of the information which Mr.. Dos
passes did not Ut liberty to give has
been supplied press from Washing
ton Some Diet # the movement leaked
out In WASN'T d.. which goes TO prove
the assertion That the feeling at Washing
ton among the leaders of all parties has
been sounded The information at Wash
ington was that among the men in the syn
dicate are James &. Forgan, first vice
president of the First National Bank of
Chicago, who, since Lyman j. Gage has
been secretary of the treasury has been
the head of that bank; j. Edward Simmons,
president of the Fourth National Bank;
George q. Williams, president of the Chem
VINO was controller of the treasury under
Harrison and who is president of the Third
M M ION Bank; Abner Mckinley, brother
and Maurice L. Muhleman, assistant and
deputy assistant United States treasurer
respectively at New York, and possibly
Frederick ID. Tappen, president of the Gal
latin National Bank. 1t is also said in
Washington that j. P!erpont Morgan. who
is now in Europe, and Henry c. Have
meyer, president of the American Sugar
Refining Company, have been making earn
dictate
Mr.. Dospassos refused to affirm or deny
tndt the men mentioned at Washington as
members of the syndicate are members but
he denied most strenuously that either Mr.
Morgan or Mr.. Havemeyer was Il member
This is the greatest effort of my life" said
Mr.. Dospassos. II have been three months
drawing this charter. / have with me here
a gentleman who was connected with the
Credit Foncier of France, and he has been
almost invaluable to me in furnishing ideas
and statistics. We have famiiarized cur
selves not only with the Credit Foncier of
France, but with the institution of the same
name IN Austria and the institution of the
same character in Germany which has
been running, successfully for a hundred
years. | shall have the charter introduced
in Congress in ten days or two weeks, and
can say to You that 1t will go through.
on. nobody VIII oppose this when IL is
understood. 1t is a measure to relieve the
people The Populists. Democrats. silver
ana gold, the Repubicans-all will be in
favor of it, We have enough money ia
TINS country. The only trouble is il has
not been distributed properly. We purpose
giving the farmers of the South and West
Just as good and just as cheap credit ia
cilities as the merchant of New York en-
joys"