IMAGE EVALUATION 
 TEST TARGET {MT-3) 
 
 // 
 
 ^^ 
 
 
 <? 
 
 
 '/. 
 
 ^ .^M 
 
 % 
 
 ^<- 
 
 Q- 
 
 %\ 
 
 w.. 
 
 ^< m 
 
 (/^ 
 
 1.0 !ri^ 
 
 I.I 
 
 1.25 
 
 1^ 1^ 
 
 1.8 
 
 1.4 
 
 1.6 
 
 ^ 
 
 
 V/ 
 
 cm- 
 
 C/A. 
 
 m 
 
 e. 
 
 e. 
 
 > > 
 
 
 yw 
 
 ^ 
 
 r i 'UUJ^ LipillL. 
 
 Sciences 
 Corporation 
 
 33 WEST MAIN STRUT 
 
 WEBSTER, NY. M5B0 
 
 (716) •72-4S03 
 
 

 CIHM/ICMH 
 
 Microfiche 
 
 Series. 
 
 CIHM/ICMH 
 Collection de 
 microfiches. 
 
 Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques 
 
Technical and Bibliographic Notes/Notes techniques et bibliographiques 
 
 The Institute has attempted to obtain the best 
 original copy available for filming. Features of this 
 copy which may be bibliographically unique, 
 which may alter any of the images in the 
 reproduction, or which may significantly change 
 the usual method of filming, are checked below. 
 
 ^' 
 
 Coloured covers/ 
 Couverture de couleur 
 
 I I Covers damaged/ 
 
 □ 
 
 Couverture endommagde 
 
 Covers restored and/or laminated/ 
 Couverture restaur^e et/ou palliculde 
 
 r~\ Cover title missing/ 
 
 Le titre de couverture manque 
 
 I I Coloured maps/ 
 
 n 
 
 Cartes gdographiques en couleur 
 
 Coloured ink (i.e. other than blue or black)/ 
 Encre de couleur (i.e. autre que bleue ou noire) 
 
 □ Coloured plates and/or illustrations/ 
 Planches et/ou illustrations en couleur 
 
 D 
 
 D 
 
 D 
 
 Bound with other material/ 
 Reli<^ avec d'autres documents 
 
 Tight binding may cause shadows or distortion 
 along interior margin/ 
 
 Lareliure serr^e peut causer de I'ombre ou de la 
 distortion le long de la marge int^rieure 
 
 Blank leaves added during restoration may 
 appear within the text. Whenever possible, these 
 have been omitted from filming/ 
 II se peut que certaines pages blanches ajouties 
 lors d'une restauration apparaissent dans le texta, 
 mais, lorsque cela 6tait possible, ces pages n'ont 
 pas 6t6 film^ei. 
 
 Additional comments:/ 
 Commentaires supplAmentaires; 
 
 L'Institut a microfilm^ le meilleur exemplaire 
 qu'il lui a 6td possible de se procurer. Les details 
 de cet exemplaire qui sont peut-dtre unique;} du 
 point de vue bibliographique, qui peuvent modifier 
 une image reproduite, ou qui peuvent exiger une 
 modification dans la mdthode normale de filmage 
 sont indiqu6s ci-dessous. 
 
 □ Coloured pages/ 
 Pages de couleur 
 
 □ Pages damaged/ 
 Pages endommag6es 
 
 □ Pages restored and/or laminated/ 
 Pages restaurdes et/ou pelliculdes 
 
 The 
 to th 
 
 1 
 
 Bt: 
 
 ages discoloured, stained or foxed/ 
 Pages dicolordes, tachet^es ou piqu6es 
 
 The 
 post 
 of tl 
 filmi 
 
 Orig 
 begi 
 the I 
 sion 
 othe 
 first 
 sion 
 or ill 
 
 □ Pages detached/ 
 Pages d6tach6es 
 
 rZ7f Showthrough/ 
 I — I Transparence 
 
 □ Quality of print varies/ 
 Qu&liti in^gale de I'impression 
 
 □ Includes supplementary material/ 
 Comprend du materiel suppl^mentaire 
 
 I I Only edition available/ 
 
 D 
 
 Seule Edition disponible 
 
 Pages wholly or partially obscured by errata 
 slips, tissues, etc.. have been refilmed to 
 ensure the best possible image/ 
 Les pages totalement ou partiellement 
 obscurcies par un feuillet d'errata. une pelure, 
 etc., ont M filmAes H nouvef;u de fapon A 
 obtenir la meilleure image possible. 
 
 This item is filmed at the reduction ratio checked below/ 
 
 Ca document est filmA au taux de reduction indiqui cidessout. 
 
 Tha 
 shal 
 TINI 
 whi' 
 
 Map 
 diffc 
 entii 
 begi 
 righ 
 requ 
 metl 
 
 10X 
 
 
 
 
 14X 
 
 
 
 
 1SX 
 
 
 
 
 22X 
 
 
 
 
 28X 
 
 
 
 
 MX 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 12X 16X 20X 24X 28X 32X 
 
 
The copy filmed here has been reproduced thanks 
 to the generosity of: 
 
 L'exemplaire filmd fut reproduit grdce d la 
 g6n6roslt6 de: 
 
 e 
 
 hails 
 !i du 
 lodifier 
 r une 
 Image 
 
 >rrata 
 to 
 
 pelure, 
 n d 
 
 n 
 
 32X 
 
 I 
 
 Archives of Ontario Library 
 
 The images appearing here are the best quality 
 possible considering the condition and legibility 
 of the original copy and in keeping with the 
 filming contract specifications. 
 
 Original copies in printed paper covers are filmed 
 beginning with the front cover and ending on 
 the last page with a printed or illustrated impres- 
 sion, or the back cover when appropriate. All 
 other original copies are filmed beginning on the 
 first page with a printed or illustrated impres- 
 sion, and ending on the last page with a printed 
 or illustrated impression. 
 
 The last recorded frame on each microfiche 
 shall contain the symbol —^(meaning "CON- 
 TINUED"), or the symbol V (meaning "END"), 
 whi'',hever applies. 
 
 Maps, plates, charts, etc., may be filmed at 
 different reduction ratios. Those too large to be 
 entirely included in one exposure are filmed 
 beginning in the upper left hand corner, left to 
 right and top to bottom, as many frames as 
 required. The following diagrams illustrate the 
 method: 
 
 1 
 
 2 
 
 3 
 
 Archives of Ontario Library 
 
 Les images suivantes ont 6t6 reproduites avec le 
 plus grand soin, compte tenu de la condition et 
 de la nettetd de l'exemplaire filmd, et en 
 conformity evec les conditions Hu contrat de 
 filmage. 
 
 Les exemplaires originaux dont la couverture en 
 papier est imprim6e sont filmds en commenpant 
 par le premier plat et en terminant soit par la 
 dernidre page qui comporte une empreinte 
 d'impression ou d'illustration, soit par le second 
 plat, selon le cas. Tous les autres exemplaires 
 originaux sont filmed en commenpant par la 
 premidre page qui comporte une empreinte 
 d'impression ou d'illustration et en terminant par 
 la dernidre page qui comporte une telle 
 empreinte. 
 
 Un des symboles suivants apparaftra sur la 
 dernidre image de cheque microfiche, selon le 
 cas: le symbole — ^- signifie "A SUIVRE", le 
 symbole V signifie "FIN". 
 
 Les cartes, planches, tableaux, etc., peuvent dtre 
 film6s d des ta x de reduction diffdrents. 
 Lorsque le document est trop grand pour dtre 
 reproduit en un seul clichd, il est film6 d partir 
 de Tangle sup6rieur gauche, de gauche d droite, 
 et de haut en bas, en prenant le nombre 
 d'images nicessaire. Les diagrammes suivants 
 illustrent la mdthode. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 6 
 
 6 
 

 '-^>^■'. r 
 
 
 f" 
 
 THE 
 
 LAIfDED CREDIT SYSTEM 
 
 or 
 
 CANADA 
 
 EXPLAINED AND REOOT^r^ENDED AS THE SUREST 
 AND MOST PROFITABLE MEDIUM FOR 
 THE INVESTMENT 
 
 OF 
 
 BRITISH CAPITAL. 
 
 BY AS ANGLO-CANADIAN 
 
 A 
 
 
 .^eJn\n^ 
 
 •^ V ttx c>n^> 
 
 ^". 
 ^ 
 
 Toror^to 
 
 " LIBiBATION PAB AMOBTISSBMSlin'." 
 
 •»" 
 
 
 LONDON: 
 
 EFFmOflAM WILSON, BOTAf; EXCHANGE. 
 1860. 
 
 PRICB filXPENCB. 
 
 ."%-: 
 
 njs^j5j?«^ 
 
 "■s^ 
 
 _^/i 
 
 
 
 ,■.»»■* 
 

 
 o^r*7 
 
 (( H«|i iinUji^;* .f I 
 
 
 jEaBnajgsi^'.eBiie «Hw»'a 
 
THE 
 
 LANDED CREDIT SYSTEM 
 
 op 
 
 CANADA 
 
 EXPLAINED AND RECOMMENDED AS THE SUREST 
 
 AND MOST PROFITABLE MEDIUM FOR 
 
 THE INVESTMENT 
 
 o» 
 
 BRITISH CAPITAL. 
 
 BY AN ANGLO-CANADIAN. 
 
 " LIBERATION PAR AMORTISSEMENT." 
 
 LONDON: 
 
 EFFINGHAM WILSON, ROYAL EXCHANGE. 
 1860. 
 
 PRICE SIXPENCE. 
 
'■■* 
 
 THE 
 
 LANJ)ED CKEDIT SYSTEM 
 
 OF 
 
 CANADA. 
 
 "A woll- written pamphlet on American Snciirities, by an ' AngIo-Ampri«!an,' purports 
 to guide and warn Britisli Investors with respect to tlieir selection of railway and other 
 investments in that country. Its arguments are correct up to a certain point, but it wholly 
 overlooks the most vital constderation in the whole question. The field for profitable 
 enterprize in America the writer fairly assumes to be practically illimitable. Therefore, he says, 
 all you have to do is to satisfy yourself that any undertaking into wbich you may be 
 disposed to enter fulfils certain rational conditions with regard to quality and situation, 
 and you will get an extraordinary rate of interest, combined with perfect safety. Thus, ia 
 the case of r, railway, the scheme must comprise possession of extensive adjoining lands, 
 naturally good, or rich either in minerals or timber ; and the route must be suflficiently near to 
 markets, to leave an ample profit on the produce raised after paying expenses of transportation. 
 * III any enterprize embracing these conditions,' it is affirmed, ' botli the security and the 
 profit must inevitably be of the first class ; other undertakings may turn out advantageously: 
 undertakings possessing these charaeteristics 'must do so.' It is to be feared that any 
 Anglo-American who can entertain the unqualified confidence thus expressed, and proclaim 
 it to his countrymen, under the idea that he is setting forth a warning, has his experience 
 yet to buy. Undoubtedly the conditions he names ought to ensure the prosperous reiiults 
 wliich seem so plain to him. Intending Shareliolders cannot do better than attend to his 
 advice on these points ; but they must also satisfy themselves upon another, without which, 
 although it has escaped him, everything else is as nothing. A distant rent-roll is not much, 
 unless you can be sure of jour steward. Add the certainty of honest management, and of a 
 faithful regard to the interest'^ of foreign partners, to the requisites cited in the present 
 ])amphlet, and you will undoubtedly have a key to an income which will enable jou ever 
 after to despi^so consols. Until that certainty can be gained, the reflection /or investors may 
 possibly be — the better the property the greater the danger ; and the caution is not altogether 
 invidious as regards America, seeing in this country how the finest railway enterprizes have 
 been brought to insolvency. That some extra care is called for in dealing on the ether side of 
 the Atlantic, is a fact that may be urged without ofience, having in view the recent experience 
 of the New York and New Haven repudiation, the Erie competition, the Pittsburgh con- 
 fiscation, and other similar incidents in the history of lines, all of which would have been 
 in the same position, however much they might have enjoyed the elements which, according 
 to the present writer, ' ought alone to satisfy the English money-holder, that, without 
 iucurriug a particle of risk, ho may more than double his income within u short space of 
 time.' Meanwhile, every one will admit with him that America should be the most secure 
 and advantageous field for the employment of British Capital, and will feel that the mis- 
 conduct which has prevented that consummation operates as a grievous wrong to both 
 countries." — The Times. 
 
 '* An Extraordinary rate of Interest" is only another term for very bad security. 
 £■; en if attainable at all, aa in the case stated, it would simply be a benefit to be en- 
 joyed infuturo. The first investor should not think of it. His children might possibly 
 be the rccipiants of a small interest, but the " Extraordinary rate " he may rest assured 
 is reserved only for the third generation. A railway is not the Philosopher's stone, nor 
 
 A 2 
 
4 THE LANDED CREDIT SYSTEM OP CANADA. 
 
 are wild or unciiltivated lands adjoining a railway turned into gold in a day or a year 
 or even years; and if therefore British Investors really seek a present income we 
 rather advise them to leave out of their calculation the very questionable security of 
 the " Railway possessing extensive adjoining lands" altogether, and to be satisfied with 
 the land alone-land without the entangling alliances of cither railway, steamboat, or 
 other adjunct whatsoever- land pure and simple. They cannot be at a loss for such an 
 investment. Let them look around, and they will find, if not in the land of old 
 England, certainly in the "dirty acres" of the substantial Yeoman of Upper Canada, 
 their best and surest security— In the latter case, a security paying them six per cent, 
 to the day, with the facility of repossessing the principal, the moment they want it. 
 
 Besides, all the advantages in favour of investors which " Anglo-American" claims 
 for the United States, will apply with equal if not greater force to Canada. There the 
 laws, habits, and customs are assimilated to those of the parent empire. Geographi- 
 cally, the situation of Western Canada is far superior. Being in about the same latitude, 
 that is, ten degrees more south than England, it has in many respects the same cUmate 
 as Spain, Italy, and the South of Europe; and by its contiguity to the gi-eat lakes, 
 which contain fiir more than half the fresh water in all the lakes and rivers of the world, 
 the extremes of heat and cold are powerfully modified. And then its rivers-the St. 
 I-awrence, whose entire course is upwards of 2000 miles, with its thousand islands and 
 scenery unequalled in America, being the great highway for the burthens nature 
 intended should reach the ocean-the Chaudiere, which drains a country of 3000 
 square mUes-the Ottawa, and Saguenay,and numerous other rivers of immense extent 
 flowing through districts abounding in natural wealth, and admirably adapted for the 
 purposes of agi-iculture and settlement. All these run into and swell the mighty St. 
 Lawrence. And if investments are particularly desired in Railway Companies, Canada 
 offers the best market. She has the largest railway in the worid, being now nearly a 
 thousand mUes long. In bringing produce from the great West, the Grand Trunk has 
 more business than it can well accommodate ; and for emigrants from Europe, it is their 
 cheapest and most expeditious route to all parts of Canada and the Western States. 
 It hae before it a great and lasting future, and at the present price of its stocks should 
 prove a good investment. This, the Great Western, and indeed all the Canadian Rail- 
 ways, are built on the soundest engineering principles, and have been pronounced by the 
 highest authority to be equal to any in Europe, and superior to any on the American 
 Continent. We cannot stay to speak of the Ivlunicipal or Educational systems of 
 Canada, which Canadians are so justly proud of. Their Municpal system has taught 
 them the virtue of self-reliance, and it has built up for them a form of govern- 
 ment assimilated as near as possible to that which nas been fondly called "the perfection 
 of human wisdom." Tt has been well and eloquently said by Mr. Sheridan Hogan :— 
 « Canada in its present position to Great Britain, may be looked upon as a married 
 
 gon He has a house of his own to care for — He has his own fortune to make — He has 
 
 hisowK children to look after, and to provide for.— But these children cling around their 
 grandfather Britain's knee. They hear his tales of his glory, and they are made manly. 
 They drink in his lessons of wisdom, and they are made good. They are warmed with his 
 
TUB LANDED CREDIT SYSTEM OF CANADA. 
 
 and tJieir own forefathera' patriotism, and they are prepared, as on a recent occasion, to 
 lavish their treasures in his support, and to shed their heart's blood, if needs be, to 
 maintain his freedom and to bear aloft his honor ! "• 
 
 Such a people in a rich and magnificent country, cannot but have a great and a 
 glorious destiny, and it is their broad acres which now invite the employment of, and 
 offer the best security for British Capital. 
 
 The writer of the Pamphlet referred to, rather unnecessarily, shall we say pre- 
 sumptuously ? bespeaks a place for tlie business men of America as regards the man- 
 agement of Joint Stock Companies, by the side of the Glyns, the Barings, the Huths 
 the Weguelins, and others whose names iluistratc the reputation of British Commerce. 
 No one doubts the great i-espectability of many of the American Merchants. But we 
 claim for Canadian Merchants at least as high a standing, men who, for punctuality in 
 all matters of business, for the strictest integrity, for known experience and intelligence, 
 for the nicest sense of honor— have no superiors— Men in short, whose word is 
 their Bond— If their names are found associated with any undertaking, it is at once a 
 guarantee that it rests on a sound basis, and that what is promised will be performed to the 
 letter. "Anglo-American" says, « The Times in reviewing his essay, acknowledges that 
 the field for profitable enterprise in America, that is United States, is practically 
 illimitable." Now The Times acknowledged no such thing. What 2%e Times said 
 was « The field for profitable enterprise in America, the writer fairly assumes to be 
 practically illimitable." It is like the old story of the man who could prove from the 
 Bible that there was no God— He left out the context, " The fool liath said in his heart," 
 which makes all the difference in the world. Such a want of faithful quotation from so 
 great an authority as The Times, is to be regretted, and is hardly worthy of the writer 
 of a pamphlet, otherwise so creditably written. 
 
 But we hasten to the immediate object we have in view, which is to point out to 
 Investors, the advantages offered to them by the Landed Credit System of Canada 
 
 The Canadian Legislature has placed on its Statute Book, an act which is destined 
 to effect an entire and most beneficial change in the mode of mortgaging in that 
 country; it has sagaciously and thoughtfully adopted the Credit Foncier system, which 
 has conferred such immense benefits on the agricultural population of Continental 
 Europe; and when we have stated what that system is, with regard to the lending of 
 money on landed security, and give as we propose to do, a short sketch of its working 
 in Canada, we tliink it will be admitted, apart from the object above stated, to be a 
 subject worthy the serious consideration of all connected with landed property in this 
 country, whether England might not advantageously take a leaf out of the book of one 
 of her children, who in this respect, we must say is greatly in advance of her, and do 
 something tow^ards improving her odious system of mortgaging, insecure and inconvenient 
 to the lender, attended in the Jong run with almost certain ruin to the borrower, and 
 productive of incalculable evil to all classes of society. 
 
 In Canada tlu a, they have raised an Institution, which gives to agriculture the 
 
 • Witness their munificent contributions to the «' riilriotic Fund," and the chivairons ardour 
 with which on the instint thoy raised and sent one tliousand men to fight England's batlles.— 
 Honor to tho lOOtlt I 
 
^ THE LANDED CREDIT SYSTEM OF CANADA. 
 
 game resources as the banks furnish to their commerce. The banks only lend on bills at 
 a short date, they expect money advanced for commercial undertakings to be soon 
 repaid, the circulation of it is rapid; they will not lend upon land, because the 
 contrary is the case. The return of capital laid out upon land is only by little and 
 little, by very small but at the same time very sure instahnenta. The Landed Credit 
 Institutions therefore acknowledge this great principle, that as the profits of the land 
 are only realized graduaUy and at long intervals, therefore money lent on it should be 
 repaid gradually and at long intervals. 
 
 The agricultural interest of Canada had long raised its just complaints on the 
 scarcity and consequent deamess of money lent to it, upon the enormous charges which 
 borrowers were occasionally put to, and upon the great difficulty which was found to 
 exist in repaying, at a short date, capital employed in the cultivation of the soU, only 
 brought to perfection by a successive augmention ot its products at the end of a great 
 number of years. Thus, whilst money had on mortgage increases every day, property, 
 far from being able to free itself from the incumbrance, and at the same time to permit 
 of proper cultivation, has at length, in numberless cases, succumbed under the weight 
 
 of its own burdens. 
 
 Is it not the case, in England as well as in Canada, that a proprietor who borrows 
 on mortgage, sees his income absorbed in the payment of interest and taxes, and 
 family expenses ? That in the impossibUity of his repaying the capital when it becomes 
 due, he is forced to solicit, to him, very burdensome delays, and at length arrives, not 
 unfrequently, at the point where he is dispossessed and ruined. 
 
 This is without question, the every-day experience of many who are and have been, 
 landed proprietors, and if so, it is a deplorable situation, and it deserves the best 
 energies of every thoughtful man to see that it is not prolonged; to adopt and support 
 any plan which holds out the prospect of a gradual liquidation of an amount borrowed^ 
 of a freedom from incumbrance so adjusted, that an advance made to a landed pro- 
 prietor shall be, as it were, imperceptibly cancelled. If you do not find some such 
 means-if you do not procure for agriculture, capital At a moderate price, it can never 
 rise beyond depression, and the onward progress of a couutiy will be seriously impeded. 
 We are led to enquire, to what causes these difficulties ought to be attributed. 
 Why should immoveable property the most solid of all securities, not succeed in attract- 
 ing capital to it except on conditions more strict and onerous than commerce and trade. 
 Why ? Because, when it has contracted loans, it fiuds much difficulty, almost amomit- 
 ing to an impossibility, in repaying them. 
 
 In the old countries of Europe there was Uttle security to the capitalist who lent 
 on mortgage. There was no publicity of Titles. There might be hidden mortgages, 
 annuities, or rent charges, and in the case of a loan or purchase being effected, no 
 possibUity of ascertaming these facts; e posing the lenders to such great risks, that it 
 was said in France, " When one purchases, one is never sure of becoming the pro- 
 prietor, when one lends on mortgage, one is never sure of being re-paid." This defect 
 of security, however, does not apply to Canada, inasmuch as the Registration of deeds 
 being of universal obUgation throughout the Province, the true state of title is at once 
 
I 
 
 THE LANDED CKEDIX SYSTEM OF CANADA. 7 
 
 easily and cheaply ascertained; and when to this advantag-c in added the important fact 
 of titles being derived directly, or almost directly, from the Crown j and also when the 
 annually pro^essive increase in the value of landed property is considered, one sees 
 that the mortgage in that country, even on the old system^, is the very best security, 
 as a security, the capitalist can have ; yet there is one serious drawback— the great 
 sacrifice which a lender must make if he wants his capital before the mortgage is run 
 out, and the costs and the delays, if a suit of foreclosure is resorted to. So that we 
 comprehend how it is that lenders exact from borrowers, over and above the natural 
 price of money, a commission, a sort of premium which is to them a compensation for 
 the dangers and difficulties of repayment. 
 
 Another prmcipal cause is in the mortgage system itself, which requires the debt 
 to be repaid in one sum all at once. The great attraction which attaches to the 
 possession of the soil gives to it a value far above its productive power. Too often we 
 buy beyond our resources— too often we burden ourselves to excess. The income of 
 the mortgaged estate is oftentimes insufficient to pay even the interest; with what 
 reason then is it expected that the whole capital itself should be repaid all at once at a 
 short date ? Whilst the farmer accumulates slowly, by an annual economy, or by tho 
 gradual increase of his produce, the term of repayment, the inexorable term, comes 
 upon him rapidly, and he finds it an impossibility to make payment all at once of the 
 whole amount. 
 
 How rarely does an estate once mortgaged become free again, your large landed 
 proprietor borrows £5,000 for five years, and then pays it off by borrowing £10,000, 
 and that again by borrowing £20,000 and so on. To pay so large an amount in one 
 lump out of the profits of his estate, is simply impossible ; some lucky chance, some 
 wealthy alliance, or as more frequently happens, the sale of a portion or the whole of tho 
 estate may do it, but the rental of the land— never. 
 
 Hence the constant torture of mind of the landed proprietor, hence the irregularity 
 in the payment of the interest and in the repayment of the capital which has been lent 
 to him; hence also, by a very natural consequence, the strictness of the conditions whiih 
 he is very often forced into by the lender. 
 
 Such are the causes which have exercised so dire an influence on landed credit, 
 and which have so long paralized the development of agricultural industry and pro- 
 duction in Canada and also in this country. ' 
 
 You have a population consuming more than the soil now produces, but by no 
 means more than it could produce if more capital could be employed upon it. Capital 
 you have in abundance, but it is to a great extent excluded from the soil in consequence 
 of the artificial difficulties, dangers, expenses, and delays which attend loans upon 
 landed security; but all tliis the system now pursued in Canada obviates, and money ia 
 invested and repossessed with so much facility that no one, not even the most timid 
 capitalist need hereafter sigh for tho *' elegant simplicity of the 3 per cents." 
 
 The system of paying off a mortgage debt by little and little, dates from the 
 earliest times of which we have any account, and even in England it obtained at a very 
 early period, so that there ia notliing new or original in the plan now under notice. 
 
8 
 
 THE LANDED CEEDIT SYSTEM OP CANADA. 
 
 But although in England, ages ago, it beccme incorporated, and ultimately lost in a 
 more vicioua system, it ivas again revived, and iias been the one almost universally 
 organized on the Continent of Europe for the last eighty years. 
 
 The origin of these institutiong in Europe is now well known. The most ancient 
 dates back to the year 1770. It was founded in Silesia. The country, we are told was 
 in a deybrable slate. The effects of the seven years' war, the rise in the rate of 
 interest ard the low pilce of agricultural produce after the war was over, had reduced 
 the proprietors of land to a sad extremity. Their credit was ruined, and capital at 
 once deserted them. In this wretched state, a Berlin mtrchant, M. Bliring, came to 
 their rescue and proposed a remedy. 
 
 His phn was simply to toiabine all the estates of all the proprietors into one aecu- 
 rity, and to substitate that combined security for the individual security of each separate 
 debtor. The plan at first was very imperfect, for there was yet wanting the grand 
 principle of the system, a sinking fund. Yet it produced the most admiiable effects— 
 the rate of interest feU, capital returned, and usury, which feeds on the poor man's iiard 
 necessity, fled the country. Proprietors who had been in momentary expectation o^ 
 being dispossessed of their estates, wer*^ now enabled to obtain fresh and additional 
 loans— agriculture more than ever prospered, and the land, in consequence of these 
 new advantages, increased rapidly in value. 
 
 The s'lccsss of this first experiment (which was made under the auspices of Frede- 
 rick the Great, a success of which any Sovereign or Government might be proud) 
 brought about by degrees the foundation of a gi-eat uuraber of ectablishmeuts of the 
 same kind in the rest of Germany, Pomerania, Baveria, Wurtemburg, Hanover, Gallicia, 
 Mecklenburgl.': Saxony, and many other States. Principalities or Duchies have seen 
 them succesaively established amongst them. Many Sovereigns encouraged them by 
 subsidies. In some countries the State managed them, in others they were formed by 
 an Association of Landed Proprietors or by Commercial Comi/anies, but all were under 
 the surveillai..'e, and many of them had the care and countenance of the Government. 
 Submitting to strict jules, invested with privileges f^ud powers which assured the 
 prompt icpayment of their advances, these establishments every where inspired a just 
 confidence, and '^3 find that even in the most difficult tiroes they were enabled to hold 
 on their way without having recourse to any rigorous proceedings against the boronrers ; 
 and what is remarkable, in the midst of the most grave crises, which occasioned ware or 
 revolutions, the value of their debentures, under the title of " Lettres de gage," main- 
 tained a rate rJways superior to that of the public funds, and why ? The Capitalist knew 
 that he had good and immoveable land for his aecimUj. 
 
 Nor were the benefits of these institutions confined to the great estates, for whose 
 Bpecu<3 benefit they were at first organized. Every where, where t'ley were established, 
 thev v'orked to tlie advantage of the landed proprietors great and small, more capeciolly 
 in the reduction of the rate of interest. They leaseued ihe encumbrances on the laud^ 
 and they furnished ii with the means of cultivation. 
 
 These institutions, we have seen, have extended themselves all over the Continent 
 of Europe, and it may occur to some, if theur tendency is so beneficial, why have they 
 
THE LANDED CREDIT SYSTEM OF CANADA. 9 
 
 not been established in England, the answer is, that here there is no general registry of 
 landed property whereby the state of a title can be easily and cheaply ascertained, an 
 ossential element in tha working of these institutions. A writer in the Edinburgh 
 Review for October, 1857, in a very able article which we shaU freely use in this 
 sketch, says, that, "without such a register no plan for effectually faciUtating mortgages 
 on land can be doviseJ, such a register exists in other civilized countries of Europe, 
 and the f<tot of our not having one ourselves is a disgrace to our Legislature." So that 
 in tffis respect, they are in Canada in a much better position than we are in England. 
 They possess a registry of titles-a registry, as a general rule, weU kept and admirably 
 adapted for the working of a Landed Credit Institution. They have embraced the 
 opportunity, and a Landed Credit Company is now organized there. 
 
 Thus we have endeavoured to show, why capital is not attracted to the land, and 
 we have given a short history of the rise and progress of institutions founded on the 
 Continent of Europe, for the express purpose of relieving agriculture, suffering from 
 the very same causes which weigh down and oppress that important interest in our own 
 country; and we row dh-ect attention very brie> to two or three of the important 
 features of the Landed Credit System as established in Canada. 
 
 The first is the just confidence which a lender will have, when he knows he has for 
 hU security the accumulated securities of a great number of estates, all vested in one 
 individual or company. If a party had lent periiaps his all, on an estate whicli, through 
 fraud or forgery, turned out valueless, he is utterly ruined ; but if he had lent his money 
 to a well managed Landed Credit Company, so terrible a calamity could not have hap- 
 pened. The rest or reserved fund, which the Company has, meets a contingency of this 
 sort ; or put it in the worst point of view, if that fund was insufficient, or if there were 
 no fund at all, then all that could happen would 1>o that the next half-yearly dividend 
 would be a quarter or half per cent. less. We d^ not like diminished dividends, but 
 the wide s])read misery of a ruined family has been averted and not a complaint is 
 heard. 
 
 In connexion, and forming an essential feature in this Company, there is n sinking 
 fund. The repayments by the borrower, which are small, and made at long intervals, 
 become his capita', and by th? steady application of interest and compound interest to 
 it, tlie growl \ of tliat capital is so rapid that in a few years it reduces considerably, and 
 eventually pays off the principal debt. The wonderful rate at which a sinking fund 
 increases must l.e obvious to most persons. 
 
 The law of accumulation of money at compound interest is so simple, and yet its 
 powers are so prodigious, that it has been demonstrated with mathematical certainty 
 tlmt any sum, however small, increasing at that ratio, would, in a given time, extinguish 
 any debt however great ; and the applicability of this principle to paying off mortgage 
 debts, the principle of progressive liquidation, is what we advocate and would earnestly 
 insist on. 
 
 George the Third, in 1790, liivd the credit ©f establishing, or rather reviving at 
 Zelle, in Hanover, the system of extinguishing a mortgage debt by little and little every 
 year, instead r*" repaying the principal in one sum. This was an improvement on the 
 system established in Silesia in !770. 
 
10 
 
 THE LANDED CREDIT STSTEM OF CANADA. 
 
 « Experience, " aays the writer, already referred to, " has shown under ordinary 
 cu-cumstances, that agriculture cannot repay in one sum, all at once, the capital advanced 
 by way of loan ',o the soil. Any new plan giving additional facility in advancing money 
 for that purpose, will, unless a plan of gradual repayment be enforced, in the course 
 of time, increase the difficulties of the borrower. The temptation to borrow becomes 
 greater, the time for repayment more distant, more and more impossible. The pro- 
 prietors, overwhelmed with debt, at least recognized that a system must be bad which 
 is not only powerless in preventing them from being dispossessed, but which, by delay, 
 ing it without cause, makes that rum more and more certam, and retains them always 
 on the brink of the precipice." 
 
 We have, at the outset, referred to some of the advantages of the system, we may 
 further remark on one or two others. 
 
 The repayments by little and little to a smking fund hold out a great advantage to 
 a borrower who at any time may wish to sell. We suppose him to have an estate of 
 300 acres, 200 of which are cleared, he has \wA difficulty in getting on for want of a 
 little capital; his land is not half so productive as it would be with but a slight addi- 
 tion of labour bestowed upon it ; his stock are few and poor ; his farming implements 
 inconvenient; his cottage mean and devoid of comfort. Now, with the 4,000 dels.* 
 borrowed of this Company and laid out with judgment, he sees his crops greatly in- 
 creased ; his cattle numerous and in fine condition ; his implements of husbandry of 
 the best construction and which he uses without stint, and his dwelling enlarged and 
 now affording every necessary comfort ; and, moreover, he has added to his really 
 productive farm 50 acres of the 100 acres left in wood. He had borrowed tho 
 4,000 dols. repayable in 23 years by 80 dols. 80 cents, yearly, a payment easily made and 
 almost insignificant in comparison with his present advantages, and he has enjoyed his 
 bettered condition, we will suppose, for five years, and now for some cause or other 
 wishes to sell. Had the money borrowed been an ordinary mortgage liable to be called 
 in on six montlis notice, he would have found this, next to impossible, except at a ruinous 
 sacrifice : a purchaser would slirink from any negotiation unless tho first condition was 
 that the mortgage must be discharged, which tho mortgagee might not just agree to 
 at that time. Humiliated he seeks a purchaser from door to door in his own littlo 
 worid, and employs at great expense first one agent and then another who do the like, 
 but tho mortgage bugbear is seen in every face, and so in time lie wearies of tho 
 search. The load is borne for many a year, and at length being unable to repay so 
 large a sum all at once, he is relieved from it by being relieved of his estate, which ia 
 sold by order of the mortgagee to pay himself his priueipal, i-iterest and costs. 
 
 Now, with the inconsiderable repayments allowed by tlie Company, this mortgage 
 is no objection whatever; but rather, to the small capitalisi at least, the very person the 
 borrower is most likely to meet with, an emigrant perhaps from this country, a positive 
 advantage. For ho having ut iiis disposal perhaps only just the agreed value of tho 
 estate and stock, pays down all but the remainder of the mortciage money, which ho 
 
 • Tho Canadian Qovernmcut has rof«ntIy adopted a decimal currency, 
 brought into sterling by Uiviiling by 5. 
 
 TliQ dollars art 
 
THE LANDED CREDIT SYSTEM OF CANADA. 
 
 11 
 
 retains to pay off gradually, and this very eum enableg Mm to carry on the requirements 
 of his new and really handsome farm with advantage, comfort, and independence, and 
 without the least fear of a six months' notice to pay off the mortgage. An immense 
 advantage it is to the borrower that he has the entire control of the mortgage money 
 for the full term agreed on, whilst, if he wishes, by giving three months' notice he can 
 pay it off at any time. 
 
 The company, by having connected with it a sinking fund, will destroy most of the 
 evils attendant on the present system of mortgaging; it will create habits of order 
 among proprietors, by rigorously enforcing the punctual payment of the interest when it 
 becomes due ; by receiving and investing these small annual payments at compound 
 interest, it not only is enabled to restore to the borrower his estate perfectly free, but 
 also makes him feel that every year his debt is decreasing in amount through his own 
 prudence. And he sees in the spirit of our motto, there is "freedom from debt by means 
 of a sinking fund." 
 
 Another advantage of the sinking fund is, that it is at least a check on the inclinatioa 
 of some parties to borrow for undesirable objects. They know before hand that they 
 must pAj back annually, and therefore if they do not invest the money borrowed 
 judiciously, it will be out of their power to comply with this requirement, and their 
 estate will be lost to tliera. The chief object of the Company is to assist Agriculture— 
 and it looks to the annual increase of the land as the best and surest means of repayment 
 of both principal and interest. Experience, however, shows that some few persons will 
 borrow for extravagant and undesirable objects, no matter at what cost. It cannot be 
 prevented, but it is believed the system pursued by the Company will at least act as a 
 check on such propensities. 
 
 Another important feature in the new system is, the Debenture.* Whilst the plan 
 of paying a mortgage debt off graduiUly was in use in England at a very early period 
 the plan of raising mortgage money by debenture or « Lettre de gage," as it is called 
 on the Continent, is of modern date, at least it is coincident with the system estab- 
 lished there. The debenture, in fact, supplies the place of the mortgage deeds which 
 represent the land, and which instead of beuig haiided to the lender, remain ui the 
 hands of his agent, or in other words, with the Company who hold them for him. The 
 lender may keep the debenture in his strong box, contented in knowing that he has 
 improved laud foi his security, and thot he receives the interest with regularity half- 
 yearly, just as h<Mvould do if it were an ordinary mortgage, with this difierence and 
 this great advantage, that if at any time lie wished again to have the use of his 
 principal, the debenture is eivsily negociated, and being made payable to bearer, it 
 transferred without expense, It is a marketable commodity, and ut any moment can 
 be convorted into money. Hankers and Capitalists not only accept but seek after these 
 Landed Credit Debentures, for if on the one hand they lose the advantage of having a 
 debt which they can d imud payment of only at a fixed period, on tiio other hand they 
 find in these simple instiuments, tiio precious facility of receiving their capital when 
 convenient to them by negoliatiou. 
 
 * It Is n promisisory note biiscii upon the credit of the ciipitttl of the Company, and on the securities 
 Leld Oil rcttl e8t*to by the Company, and given in oxclmngc for money lent to the Company- 
 
( 
 
 X2 
 
 THE LANDED CREDIT SYSTEM OP CANADA. 
 
 If the lender had merely the mortgage deeds in his posseBsion, he wonld find them 
 only an encnmhrance; he could make no use of them, no one would advance money 
 „pl them, and evenif hehad heen so fortunate as to have had his mteres punctually 
 paid if the time came when he wanted his principal, his only coarse would be to give 
 a sil months' notice-if the mortgage were not for a specified time-to the borrower to 
 pay him; and the great probability is, that having undergone the disagreeable basmess 
 of nressig his debtor for months after the expiration of the notice, he at length only 
 11 paid by a sale of the estate. How much more satisfactory to be freed from so 
 Slgrceable a necessity ; to be Bure of his interest to the day, and of his pnncipal the 
 
 moment he wants it. i. i i 
 
 The Company is bound by its act only to advance its monies upon first mortgages, 
 and this circumstance, combined with the important fact that by its -turns to the 
 Government it cannot issue more debentures than there are secun les to represent them 
 of at least double their value, must be an assurance to the capitalist, that these Landed 
 Credit Debentures are issued upon a permanent and safe basis. ^ ^ ^^ „ 
 
 It may be asked what the position of the Company is with respect to the Qovern- 
 xnent of Canada. The Government does not charge iteelf, either with the direction or 
 wUh the administration of the Company. But it does thU,-it takes it to a cer tarn 
 extent under its protection. It submits it to a control-to a serveiUance, which is 
 indispensable to guarantee the public, that it will not disregard the rules and conditions 
 which are prescribed to it. It requires statements on oath to be sent penodicaUy to its 
 Minister of Finance, showing the exact position of the Company, and which are inib- 
 lished in such manner as the Minister thinks most conducive to the public good ; and ho 
 is invested with stringent powers of examination of the books and enquiry mto the 
 affairs of the Company, whenever he sees fit. By this government control the pub he 
 is put in possession of the exact measure of confidence which it ought to have m the 
 
 '"'*' Wrproceed to shew the advantages the Canadian Company offers, and first to the 
 
 ^""Tr He is enabled with great ease to borrow of the Company the sum he requires, 
 without having recourse to the heavy expense of employing a number of Agents. He 
 has merely to satisfy the Company that he is entitled to the estate which he proposes to 
 give as a security, an estimate is made of its -alue by the Company, and the estate is 
 duly registered as a security to the Company for the amount advanced 
 
 2nd. By borrowing of this Company there is no possibility of the borrower ever 
 been called upon suddenly or unexpectedly to pay off the debt. When the money is 
 borrowed he enters into a contract to pay a certain fixed sum yearly, m addition to the 
 interest into a sinking fur.d, and the Company agrees with him that when the amoun 
 of these small sums, which bear compound interest, equal the amount lent, his debt 
 wUl be cancelled and his estate will have become entirely free. Experience has 
 shown, under ordinary circumstances, that mortgage debts are rarely repaid in one 
 Bum all at once. The repayment is seldom if ever made until after a lapse of years, 
 and tlien generally by a sale of the estate. The Company offers the borrower the 
 great .vdvautage of paying off his morlguge debt, little by little, bo tliut at the end of u 
 
THE LANDED CEEDIT SYSTEM OP CANADA. 
 
 13 
 
 certain definite time, 23 years, the estate will be his own, and once more, through his 
 own prudence and foresight, entirely free. It is a Savings Bank for him, in which he 
 can conveniently place a small annual saving to accumulate at interest and compound 
 interest, and be the means eventually of paying oflF his debt. It cannot be expected 
 that an individual lender will take any such trouble and agree to receive these small 
 yearly or half-yearly instalments, nor wUl any borrower take the trouble of investing 
 for himself a amall annual payment for a great many years together with the interest 
 as it accrued. The debt is expected by the lender, when paid, to be paid off in one 
 sum or several large sums. But what the borrower cannot do for himself, and what 
 the lender will not do for him, is done with the greatest ease by this Company. 
 
 3rd. The borrower, on giving notice, is allowed to pay off his debt at any time, 
 «nd the different sums he has paid to the Sinking Fund, with compound interest, is 
 reckoned in the account. 
 
 The advantages oflered by this Company to the lender, arc reciprocal: 
 lat. The lender ha» the security of a number of estates collectively, together with 
 the certainty of his interest being paid regularly to the day, without his ever liaving to 
 seek after, annoy, or dispossess any individual. The Company alone being responsible 
 to him. 
 
 2nd. The lender has no anxiety, care, or even thought, as to the character of any 
 individual borrower, or of the value of the land mortgaged. 
 
 Srd. The security or debenture which he holds bearing 6 per cent, interest paya' ' j 
 in London or Toronto, is a marketable commodity, easily transferred from hand to 
 hand, so that he can convert it into money at any moment. 
 
 4th. The Sinking Fund of the Company— whilst it makes the borrower feel that 
 every year his debt is decreasing in amount, and secures to him, in course of time, 
 perfect freedom from debt— is every day impioving and making more effectual the 
 security of the lender. There is daily, a& it were, money accumulating to meet the 
 aum advanced by the lender, and his security is, in consequence, more and more 
 established. 
 
 From these, which are only a few of the advantages the Company offers to the 
 lender and the borrower, it will be seen that the question of facilitating the means of 
 borrowing, and of encou» *f 'ag' the flow of capital to the land, is one of the greatest 
 importance in a national poii . of view. The farmer who desires to render his land in 
 the highest degree productive, to adopt a system of drainage, to keep good fences, to 
 build bams, to use the best implements, and to enlar^ro and improve his dwelling, will 
 not hesitate to borrow capital when it can be had and repaid with such certainty and 
 case: To Iwrrow money on landed security will cease to be a sign of poverty, and be 
 one of the ways of becoming more wealthy and of benefiting society— the labourer, the 
 artizan, the merchant, as well as the landowners, will all be materially benefited by tho 
 stimulus given by the system wo advocate. 
 
 As regards the Company itself. Its object is to be the intermediary, the friend of 
 
14 
 
 THE LANDt-D CREDIT SYSTEM OP CANADA. 
 
 both lender and borrower. It has to see that the payments are mado with regularity, 
 and to invest them, or a portion of them, again as the accumulating fund to pay oflf the 
 debt according to previous agreement. The Company has also to pay the interest to 
 the lender, on the day it becomes due. In everything the Company holds the balance 
 equal between the capitalists and the landed proprietors. 
 
 There are surely thousaads who will eagerly invest their surplus funds where there 
 can be no risk, and where the interest is certain to be paid to the day. Capitahsts 
 advancing money on the security of productive land in a country, prosperous beyond 
 parallel, and where the monied institutions are upon a firm hasis, have the highest and 
 best security it is possible to give. 
 
 It is a peculiar feature of this Company that it is empowered to horrow on its own 
 aecurity-the Company being itself secured by the accumulated securities of a number 
 of estates all mortgaged-the exact amount of money which it has lent. If, for example 
 100 000 dols. £20,000, be let out on moitgage, the Company may issue its certificates or 
 debentures for a corresponding amount, bearing interest, and these may be issued, not 
 one debenture for one mortgage, say of 2,000 dols. £400, but in debentures of various 
 amounts from 50 dols. £10, upwards, altogether making up 2,000 dols. £400. They 
 are issued in smaU amounts so as to be easily negotiated, and so as to suit the small as 
 
 well as the large Capitalist. ^ 
 
 Without some check there might no doubt be more debentures issued than there 
 were securities to represent them The act therefore provides, that audited returns 
 similar to what the banks are required to furnish, shall be made half-yearly to the 
 Government and pubH^hod in the Gazette and certain newspapers, of the then state of 
 the affairs of the Company, shewing the amount of securities in its possession, and the 
 amount of debentures issued and afloat, which are never to exceed the amount lent or 
 due on those securities. The p^.^cise position of the Government with regard to the 
 Company has been already noticed. 
 
 Tlie Company is not in the interest exclusively of cither capitalist or landed pro- 
 prietor, but of both. It is their agent or intermediary. It does not seek to obtain 
 for one very large profits at the ruinous cost of the other; but it gives to the 
 capitalist in Canada the highest market value for his money, and to the Capitalist m 
 England a much higher value for his money than can there be obtained, and with that 
 regularity and ease, the absence of which arc so severely felt by mortgagees on the old 
 Bvstem in both countries, at the same time that it accomplishes all this by facilitating 
 the means of mortgaging-of encouraging the flow of capital to the soil, it wiU confer 
 inestimable benefits on agriculture and on aU persons connected with it, from the owners 
 down to the humblest laborers employed. 
 
 • From the Annual Report of the Company just issued, it is stated that of 67 half-yearly 
 payments of interest due recently, 48 were paid before dr, generally two or three days or a 
 wetk, 18 were paid a few days after they were duo, and the delay generally arose from cross 
 posts or accidental circumstances, and only 1 was in arrear for any time, and that is now paid, 
 an assurance to the Debenture holder, that inasmuch as the Mortgagor., paying so easily and 
 punctually their interest, the Company iu turn is enabled, eoaily and punctually, to pay Ulm lus 
 iulerojit. 
 
THE LANDED CEBDIT SYSTEM OF CANADA. 
 
 15 
 
 The Company is governed by a President, Vice-President and Board of twelve 
 Directors, six of whom go out of office by rotation in each year, but are eligible for 
 re-election as Directors (see appendix). The Board ia responsible to the shareholders 
 for the appointment of their officers, and for the conduct and management of the 
 affiiira of every department, subject and in accordance to the act of Parliament andthc 
 By-Laws made thereunder. 
 
 It is a fundamental rule of the Board, indeed it is imperative by the act of Incor- 
 poration, that no advance be made but on improved landed property yielding an annual 
 income. 
 
 No advance is allowed to be made on personal security or on personal property. 
 
 Nor does the Company lend except on a first Mortgage. 
 
 The proportion of the sum lent to the value of the estate cannot exceed in 
 amount one half of the value ascertained by the surveyor of the Company. 
 
 It is one great advantage of this Company that the lender deals exclusively 
 with it. He has no anxiety, care, or even thought as to the character of any 
 individual borrower — he does not even know what particular estate or estates are 
 his security for the money he has lent. He has to look to the Company alone, and 
 to satisfy himselt of the respectability and responsibility of that Company, and 
 that it will not issue more debentures than it has securities in its possession ; and 
 to secure this latter object, audited returns are made to the Government of 
 the Company's alTairs, as already stated, thus giving the strongest guaranty to the 
 public for the good management of the Company. 
 
 In'Oanada, where there are so many industrial enterprizes, ofTering large returns 
 for capital employed in them, it is not to be expected that any great amount of 
 capital will be diverted f'om them, even though the investment offered by this 
 Company be on the most solid basis — the interest fixed and certain, and the repay- 
 ment attainable at any moment. But are there not a great number here, where 
 interest is low, who will eagerly seek after the debenture which is secured by good 
 land to more than twice its value ? Such are, for example, mercantile houses, who 
 frequently possess current funds, often considerable, which are unproductive; why 
 should not these invest in the debentures of tins Company, for whilst getting a 
 good interest they can realize at any moment ?~the funds of those who are incapable 
 of managing for themselves — those arising from rigid economy, or periodical savings 
 — those belonging to the public establishments — the cautious capitalist — all those 
 who seek after sure investments, rather than very high interest obtained at great 
 risk of security. Will not all these invest in the Landed Credit Debentures, when 
 issued on an unexceptionable basis? 
 
 Asa guaranty for the performance of its engagements with the holders of the 
 debentures, the Company offers to them : 
 
 1st. The ndvantige which it possesses of the first half-years annuity of the 
 borrower being paid in advance. 
 
 2nd. The rigour with which it enforces the punctual payment of future 
 interest. 
 
16 
 
 THE LANDED CREDIT SYSTEM OF CANADA. 
 
 3rd. The resources which the sinking fund places at its disposal. 
 
 4th. The strict punctuality with which it makes its own payments. 
 
 Tables have been prepared which show at a glance the amount to be paid the 
 sinking fund for a loan of 100 dollars for any given number of years, from five to 
 twenty-three inclusive, with which it is not necessary to trouble the reader. 
 
 And now we would ask, parenthetically, whilst advocating the principle and 
 expressing our admiration, and rejoicing in the success, of the Company whose history 
 we have sketched— a success which the landed proprietors of Canada know how to 
 appreciate-whether it would not be possible to found some such Institution in 
 England. Difficulties there are, and will be in any great enterprise, but which by 
 steady perseverance may be overcome, and if properly met, may even be converted into 
 instruments of power, and confer lasting honor on the mind that achieves the triumph. 
 
 " what merit to be dropped on Fortune's hill ? 
 
 Th honor is to mount it. " 
 
 We are met at the outset by one, the want of a general registry of deeds. In 
 the present temper of the Legislature this obstacle appears almost insurmountable, 
 but it need not prevent the attainment of a great amount of good, if you cannot get 
 all you wish-The very class who oppose all attempts to introduce a registration of 
 deeds, is just that class which would most benefit by it. More enlightened views we 
 are happy to think are beginning to be entertained on this vexed subject, and until it 
 is settled, if the landed interest and capitalists can only be made to see, and appreciate, 
 and embrace the system we advocate, as they are sure to do in the end, some progress' 
 will have been made, and there will then only remain the question as to how long 
 parties requiring money on mortgage will yet prefer the luxury of paying enormous 
 charges for investigatuig a Title which with a registry would be efiecttd at a com- 
 paratively trifling cost. 
 
 But, perhaps, a more formidable obstacle is the low rate of interest in England 
 as compared with Canada. The rate of interest obviously depends on what can be 
 made by the employment of capital in industrial undertakings. Where profits are 
 high, as in Canada, interest is also high-8 per cent, is there considered a low 
 interest, and therefore a Company realizing that interest can afford to pay 6 per 
 cent, on its debentures, and have a handsome sm-plus to pay costs of management 
 and a good dividend on its stock besides. But a Company here might have difficulty 
 m raising any considerable amount at 3 or 4 per cent., and investing it on mortgages 
 of land at 5 or 6; indeed, large amounts would not command an interest of more 
 than 4 per cent., and then where is the margin of profit for working expenses ? 
 These might, perhaps, be provided for by a small fee payable by the mortgagors 
 although this mode would be objectionable on n-any accounts. ' 
 
 But leaving such matters to be dealt wi'th by abler hands, and contenting 
 ourselves with making these suggestions, we recur to our first position, that the land 
 
 a t 
 
/ 
 
 I be paid the 
 from five to 
 ler. 
 
 rinciple and 
 hose history 
 mow how to 
 stitulion in 
 at which by 
 nverted into 
 he triumph. 
 
 THE LANDED CREDIT SYSTEM OF CANADA 17 
 
 alone good and immoveable land, in Canada West is far better security for capital 
 tnan a railway possessing extensive adjoining lands " in the United States The 
 latter onhj holds out the prospect of "a distant rent-roll," as shrewdly remarks The 
 Times, the former gives A PRESENT AND HANOSOiME INCOME TO TIIF 
 BRITISH CAPITALIST. 
 
 ■ deeds. In 
 'mountablo 
 cannot get 
 istration of 
 d views we 
 and until it 
 appreciate, 
 le progress 
 
 how long 
 f enormous 
 
 1 at a com- 
 
 n England 
 hat can be 
 profits are 
 red a low 
 pay 6 per 
 nagement, 
 
 2 difficulty 
 mortgages 
 t of more 
 expenses ? 
 ortgagorSj 
 
 ontenting 
 t the land 
 

 i! 
 
 AFPENDIX. 
 
 (I[ajiaila landi^^ ^injilit d^wmpng, 
 
 INCORPORATED BY ACTS OF THE PARLIAMENT OF CANADA, 
 CAPITAL 400,000. 
 
 FBESIDENT: 
 
 LEWIS MOFFATT, Esq. 
 
 The HON. G. W. ALLAN, M.L.C. 
 
 R. D. CHATTERTON. Esq. 
 
 The HON. MALCOLM CAMERON, M.P.P, 
 
 RICHARD L. DENISON, Esq. 
 
 CHARLES DONALDSON, Esq. 
 
 W. P. ROWLAND, Esq., M. P. P. 
 
 VIOE-FBESIDENT : 
 W. P. ROWLAND, Esq., M. P. P. 
 
 DIBEOTOKS: 
 
 THOMAS D. HARRIS, Esq. 
 
 LEWIS MOFFATT, Esq. 
 
 WILLIAM McMASTER, ESQ, 
 
 SAMUEL SPREULL, ESQ. 
 
 MR. SHERRIFF SMITH, COLLINGWOOD. 
 
 E. W. THOMSON, Esq. 
 
 BANKERS: 
 
 MESSRS. SMITH. PAYNE AND SMITHS ; 
 BANK OF BRITISH NORTH AMERICA; BANK OF UPPER CANADA. 
 
 STANDING COUNSEL: 
 
 STEPHEN MAULE JARVIS, Esq. 
 
 ATTDITOBS: 
 WILLIAM ALEXANDER, Esq. | CHARLES ROBERTSON, Esq. 
 
 SOIiICITOB AND SEOBETABT 
 
 JOHN SYMONS, Esq. 
 
 HEAD OFFIOE-VTOTOBIA HALL, TOBONTO. 
 
 LONDON BBOKEBS. 
 
 Messrs. BRUNTON & SON, BARTHOLOMEW LANE. 
 
 THE OBJECTS OF THE COMPANY, ARE: 
 
 1st. To aflFord to Capitalists easy and safe investments, which are secured by the sub- 
 scribed capital of the Company, and by the combined security of a great number of mortgages 
 of landed property in Canada West, not exceeding in any case one half of the value of the 
 land. The Title Deeds are deposited with the Company, who are compelled by the Act of 
 Incorporation to return, half-yearly, to the Finance Minister of Canada, a statement of the 
 business done and of their actual position at the date thereof, and which is published in tlie 
 official Gazette. 
 
 5ind. To give to the Debenture holder, or in other terms, the Mortgagee, a marketable 
 commodity — instead of Title Deeds, which he could not sell, he holds a simple Debenture 
 which he can convert into money at any moment, with the certainty in the mean time of his 
 interest being paid regularly to the day. 
 
 3rd. To enable the landed Proprietor who borrows, to extinguish the mortgage debt 
 by little and little every year by means of a sinking fund, instead of repaying the principal 
 in one sum. 
 
 Note.— The Company's Debentures for £r>0, £100 and £1,000, for 5, 7, rmd 10 years, 
 bearing G per cent, per aunum interest, are ready lor delivery on application at the house 
 of Messrs. Buunton & Son, Bartholomew Lane, London, E.U. 
 
 The interest is paid on the 1st .January and 1st July in each year, on presentation of 
 the proper Coupon, at the Banking House of Messrs. Hjiitu, PAY^•E, and SMITHS, London, 
 and m.ay also bo received thro'iKh any of the Gounti-y Banks. 
 
%