The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-09-29
lGREAT ADVANTAGE
TO LANDOWNERS
Similar Banking Institutions .In4
tended to Help Farmers May
Be Established in South and
Other Agricultural Sections
Model Upon Which
It Works.

Ine Credit Foncter OF France. an IN,
stitution to deal primarily In land
mortgages ana long time loans. was
established IN 1852. It's capital In the
beginning was s5.ooo.ooo. but q tts
operations have been extended its
authorized capital has been increased
until to-day 1t stands at 34o.ooo.ooos
In 1876 1t absorbed the Credit A8ricols.
an independent joint-stock bank, which
had been chartered in 1851 to procure
capital or credit for French agrieuI-
ture. Thus enlarged. tho Credit Fon-
cier has been Of great advantage tt
land owners and farmers. At the pres
ent time 1t Is Of more than usual in
terest because the ideas underlying its
operations are to be given a practical
test in the United States by the estab-
lishment Of similar bank in Illinois.
II this experiment is successful like
banking institutions will probably be
established in the South and other aGri-
cultural sections.
Organlzat1on and Resources Of Creast
FSneSeP.
The Credit F1ncier is under the d.
rect charge OF the French Minister OF
Public Finance and Is controlled by
his representatives. The governor Of
the organization together with the two
II appointed by the
President Of France. Three members
Of the Board Of Dtrect,rs are named
By the General Assembly of the nation.
The other twenty are selected by the
stockholders The operations OF the
bank are. therefore. under the general
direction OF the stockholders out must
undergo a rigid inspection by the state
at all times. In additi IN to its capital
the Credit Foncfer secures resources
BY issuing credit obligations CT bonds
which run for a long period OF years.
Ry giving prizes in connection with
these obligations. IL II enabled 70 OBJ
tain purchasers despite the low rate
OF interest offered
Character 81 Loess.
The Credit Foncier makes loans 81
two descriptions. The FIRST are mort
cage loans for long periods. ranging
from ten to seventy-nve years. with .
provision for their gradual payment
The rate Of interest. although varying.
is now about per cent The borrow
er NAV clear himself At any time cy
making advance payments The secouo
class @. loans are based on nortSages
bat do not exceed maturity OF hsns
wears The tatcrcs, rate Is tie same
a. on loans Tor longer pe.sod- .eot
Their. is no provision for gradual pay
men, IN annual or seu,i-snnuai install
rnents. and the loan cannot be PAID De-
for. /, natures. II the land security
or.-cd consists o. houses town loo
or farming lands . loaa 10 made TO the
exten. Of 80 per cen; OF the
vsiuc OF the property. On vise-
Yards and timber lands. however. loans
are made only 60 c1c-thire OF ire
vsiue. owing to the COMPARATIVELY
greater danger OF the distruetion %
this class OF holdings since i;s 80
,asll.ameu.s. si.i3s. e,o.ees has been
placed By the Credit Foncier IN lcess
Of this descripti IN. % which amo1m
abcu, Sscc. eea. Geo In loans % ss:h Gut
s,sadine. The crssnsssfton since lssS
has also LOANED asou, s.se.ess0vs -
French essses and provinces ssr -
purpoSe prsmar:iy os nsking 49,
smprcv>wesss. The CITY 6wsslsr -
Therefore. 90 well - the farmer veee
er~astv benefited by us epsSeD
when n has any free 81 surplus
,h~~ are used M Making Tsty
iosos i,,sed on collateral soe -
eou,,,nx commersssi psp>r
a. usvsS CvsGs 49,
AZ ts~ resuls OF . seuoy - -
l-.--A~ - ~ ~ = = 3