New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-05-17
A BIG FINANCIAL SCHEME.
CONGRESS TO BE ASKED TO CHARTER AN
INSTITUTION ON THE LINES OF THE
FRENCH CREDIT FONCIER

FRENCH CREDIT FONCIER
In the course OF the next ten days Congress will
be asked to grant charter to a great financial in
stituton which 1t Is proposed to establish In this
country. John X. Dos Passos. the we.l-known
lawyer. has drawn up the charter. which provides
for the promotion OF credit company, to be con-
Quoted upon plans similar to those OF the Credit
Foncier OF France. II 1t succeeds, however, the
American project. both in its capital and the scope
Of Its operations. will surpass the famous French in
stitution. The Loan and Mortgage Bank Company
OF the United States. the company is to be called
will have a capital OF S0O.OOOOO0 divided into shares
of $40 EACH The prime purpose OF the scheme is to
lend money to farmers upon mortgage at much
lower rate than they are now compelled to pay.
In addition, the charter will; authorize the company
to do genera; trust and banking business. The
institution proposes to loan money farmers In any
part OF the United States at 4.G5 per cent in
terest. The money Is to be repaid in quarterly
instalments. which may. II the borrower wishes be
spread over period Of sevcnty-flve years, but he
has the privilege Of redemption at any time.
The quarterly payments will represent not only
one-fourth OF the annual interest due. but a small
sum, amounting to eghty-ive- -hundredths OF one
per cent annually the face Of the loan,
which will go into the sinking fund to pay of the
principal Of the debt. so that when the quarterly
payments have all been made the debt will have
been extnguished. The company will be permitted
to lend up TO 30 per cent OF the valuation OF the
lano nlortgaged The borrower however will not re-
coive money consideration for his mortgage In
stead. he will get a bond issued by the company.
bearing 36o per cent interest. To get money he will
nave TO dispose Of this bond, but as It Is expected
mat the bonds will sell at a premium, the extra
transaction Will only tend TO reduce the rate OF
interest the farmer will have to pay
1t Is no; proposed to ask the Government TO sub
scribe 10 the capital of the company. On the con-
rary one OF the conditions under which the charter
VIII be asked from Congress will BE- that the com
pdhy shaI, on the Governments demand, at all
times be ready to advance at least s25 900 Ia tho
government at current rates of interest, Ii is said
mat the members of the syndicate OF incorpora tors
include some OF the most prominent business men
IN me country but Mr. Dos Passos when seen yes
terday at MS home No IS East Flfty-sixth-s was
not prepared at present TO give out the names for
publication. He is firmly convinced that the stock
VIII De subscribed twice over. Referring to a report
that President Mckinley had expressed himself in
favor OF the project. Mr.. Dos Passos said "
The Administration knows nothing OF the details
OF TINS plan; ! have never consulted the President
or any or his Cabinet or any members OF Congress
ABOUT lhe company, Inc scheme Is purely nom
partisan and non-po!itica. and | expect to receive
the cordial and hearty support OF all parties when
the charter is presented TO Congress. No banker