IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 
 
 1.0 
 
 I.I 
 
 H I4£ 12.0 
 
 IS 
 
 
 1.25 
 
 U 1 1.6 
 
 
 ^ 6" 
 
 — ^ 
 
 V2 
 
 ^ 
 
 ^l 
 
 O 
 
 7 
 
 ^ 
 
 
 I 
 
 Photographic 
 
 Sciences 
 
 Corporation 
 
 ^"S 
 
 4. 
 
 
 ST A^ -^ 
 
 V 
 
 % 
 
 
 23 WEST MAIN STREET 
 
 WEBSTER, N.Y. 14580 
 
 (716) B72-4S03 
 
 4^ 
 

 
 t/j 
 
 > 
 
 CIHM/ICMH 
 
 Microfiche 
 
 Series. 
 
 CIHIVI/ICIVIH 
 Collection de 
 microfiches. 
 
 Canadian Institute for Historical Microreproductions / Institut canadien 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. 
 
 L'Institut a microfilm^ le meilleur exemplaire 
 qu'il lui a 6t6 possible de se procurer. Les details 
 de cet exemplaire qui sont peut-dtre uniques du 
 point de vue bibliographique, qui peuvent modifier 
 une image reproduite, ou qui peuvent exiger une 
 modification dans la m6thode normale de filmage 
 sont indiquds ci-dessous. 
 
 H Coloured covers/ 
 Couverture de couleur 
 
 I I Covers damaged/ 
 
 n 
 
 Couverture undommagde 
 
 Covers restored and/or laminated/ 
 Couverture restaur^e et/ou pellicul6e 
 
 D 
 D 
 D 
 
 Coloured pages/ 
 Pages de couleur 
 
 Pages damaged/ 
 Pages endommagdes 
 
 Pages restored and/or laminated/ 
 Pages restaurdes et/ou pelliculdes 
 
 □ Cover title missing/ 
 Letit 
 
 titre de couverture manque 
 
 ^/ 
 
 Pages discoloured, stained or foxed/ 
 Pages ddcolordes, tachet^es ou piqu6es 
 
 I I Coloured maps/ 
 
 Cartes g^ographiques en couleur 
 
 D 
 
 Pages detached/ 
 Pages ddtach^es 
 
 D 
 
 Coloured ink (i.e. other than blue or black)/ 
 Encre de couleur (i.e. autre que bleue ou noire) 
 
 y 
 
 Showthrough/ 
 Transparence 
 
 □ Coloured plates and/or illustrations/ 
 Planches et/ou illustrations en couleur 
 
 □ Bound with other material/ 
 Reli6 avec d'autres documents 
 
 D 
 D 
 
 Quality of print varies/ 
 Quality indgale de I'impression 
 
 Includes supplementary material/ 
 Comprend du materiel supplementaire 
 
 D 
 
 D 
 
 Tight binding may cause shadows or distortion 
 along interior margin/ 
 
 Lareliure serree peut causer de I'ombre ou de la 
 distortion le long de la marge intdrieure 
 
 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 ajoutdes 
 lors d'une restauration apparaissent dans le texte, 
 mais, lorsque cela dtait possible, ces pages n'ont 
 pas 6t6 filmdes. 
 
 D 
 
 D 
 
 Only edition available/ 
 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 6t6 film6es d nouvcau de fapon d 
 obtenir la meilleure image possible. 
 
 D 
 
 Additional comments:/ 
 Commentaires suppl^mentaires; 
 
 This item is filmed at the reduction ratio checked below/ 
 
 Ce document est filmd au taux de reduction indiqud ci-dessous. 
 
 10X 
 
 
 
 
 14X 
 
 
 
 
 18X 
 
 
 
 
 22X 
 
 
 
 
 26X 
 
 
 
 
 30X 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 12X 
 
 
 
 
 16X 
 
 
 
 
 20X 
 
 
 
 
 24X 
 
 
 
 
 28X 
 
 
 
 
 32X 
 
 A 
 
e 
 
 §tails 
 s du 
 lodifier 
 r une 
 Image 
 
 The copy filmed here has been reproduced thanks 
 to the generosity of: 
 
 National Library of Canada 
 
 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. 
 
 L'exemplaire filmd fut reproduit grdce d la 
 gdn^rositd de: 
 
 Biblioth^que nationale du Canada 
 
 Les images suivantes ont 6t6 reproduites avec le 
 plus grand soin, compte tenu de la condition et 
 de la nettetd de l'exemplaire film6, et en 
 conformity avec les conditions du contrat de 
 filmage. 
 
 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. 
 
 Les exemplaires originaux dont la couverture en 
 papier est imprimde 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 film6s 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. 
 
 The last recorded frame on each microfiche 
 shall contain the symbol —^-(meaning "CON- 
 TINUED "), or the symbol V (meaning "END "), 
 whichever applies. 
 
 Un des symboles suivants apparaitra sur la 
 dernidre image de cheque microfiche, selon le 
 cas: le symbole —^- signifie "A SUIVRE", le 
 symbole V signifie "FIN". 
 
 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: 
 
 Les cartes, planches, tableaux, etc., peuvent etre 
 filmds d des taux de reduction diffdrents. 
 Lorsque le document est trop grand pour etre 
 reproduit en un seul clich6, il est filmd d partir 
 de Tangle sup^rieur gauche, de gauche d droite, 
 et de haut en bas, en prenant le nombre 
 d'images n6cessaire. Les diagrammes suivants 
 illustrent la m^thode. 
 
 errata 
 to 
 
 pelure, 
 >n d 
 
 n 
 
 32X 
 
 1 
 
 2 
 
 3 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
, ^^^ , », -K*!)^^ 
 
 iPrr: 
 
 > w * w«w *v^h<^H^* ^> >*' W «' *H»^ ' <^ .^! N >« * <i^ S^^ 
 
 }>) 
 
 THE 
 
 OR 
 
 li lAiam IE ElEDIT riiciEi 
 
 THE WORKING OP THAT INSTITUTION IN EUROPE 
 
 THZ OPINIONS OF THE LEADINO POLITICAL ECONOMISTS OF EUROPE WITH 
 B.EGAKO TO ITS PRINCIPLES AND ADVANTAGES ; COMPILED AND - 
 TRANSLATED FROM AUTHENTIC WORKS IN THE 
 FRENCH LANGUASE. 
 
 V 
 
 THE INTRODUCTION OP THE SYSTEM INTO LOWER CANADA 
 BRIEFLY CONSIDERED. 
 
 By OBOROS BSNRT BSAOAUZiAT 
 
 ,f.^. 
 
 *'- (' 
 
aNADA 
 
 i 
 I, 
 
 
 NATIONAL LIBRARY 
 BIBLIOTHEQUE NATIONALE 
 
 ■V. 
 
 ^ 
 

 THE 
 
 SYSTEM OF 
 
 ou 
 
 LA gmaflE be mm oiiciiB 
 
 THE 
 
 SYSTEM OF LANDED CREDIT 
 
 OR 
 
 LA BANQUE DE CllEDIT FONCIER 
 
SY 
 
 m^ 
 
 ^■■*wii ■*■■ '^^4 '*' 
 
 T] 
 
 TH 
 
 THE 
 
 , » 
 
TIIK 
 
 i^<i 
 
 OF 
 
 OR 
 
 111 
 
 THE WORKING OF THAT INSTITUTION IN EUROPE 
 
 THE OPINIONS OF THE LEADING POLITICAL ECONOMISTS OF EI'RorE WITH 
 
 REGARD TO ITS PRINCIPLES AND ADVANTAGES ; COMPILED AND 
 
 TRANSLATED FROM AUTHENTIC WORKS IN THE 
 
 FRENCH LANGUAGE. 
 
 THE INTRODUCTION OF THE SYSTEM INTO LOWER CANADA 
 
 BRIEFLY CONSIDERED. 
 
 By GEORGE HENRY MAOAULAY 
 
 
 "-^t-S^-c 
 
 QUEBEC 
 
 DESBAKATS and DERBISHIKK 
 Queen's Printer 
 
 18G3. 
 
356584 
 
 H); 
 
 ' • ' '/ 
 
 Tc 
 
 EsTHUKn acconimg to the Act of the Provmcial ^-l^^™;^"^!";;^^^; 
 year one thousand eight hundred and s..ty-threo by G^;" ' ' "^'^ ^ 
 LcvLKAV, in the Office of the Registrar of the Provmce of Canada. 
 
 d( 
 
DEDICATIOlSr. 
 
 -•^ 
 
 the 
 ida- 
 
 To The Honorable Alexander CAMPDfcLL, Q. C, 
 Speaker of the Honorable The Legislative Council, 
 
 and 
 
 The Honorable Joseph Edouard Turcotte, Q. C, 
 
 Speaker of the Honorable The Legislative Assem- 
 bly : 
 
 of Canada, 
 
 This Pamphlet is by permission respectfully 
 dedicated by 
 
 THE AUTHOR. 
 
tll< 
 
 nn 
 
 F. 
 
 pc 
 
 of 
 
 ai 
 
 re 
 
 ir 
 
 T 
 
 h: 
 
 ci 
 
 tl 
 li 
 
 ti 
 
 P 
 
 ii 
 
 € 
 ll 
 C 
 
 
INTIlODITCTIOlSr. 
 
 The general interest wliicli seems to be taken by 
 the rural population of Lower Canada, in the o.stablish- 
 ment of a Landed Credit Institution, Banque dc Credit 
 Fonder^ in this seelion of the Province, and the im- 
 portanee of an impartial examination of the arguments 
 of the promoters of the seheme ; have induced the 
 author to submit to the public a translation of the most 
 reliable opinions which have emanated from the lead- 
 ing political economists of Europe on this subject. 
 The newspapers of both Upper and Lower Canada, 
 have, since the meeting of Delegates at the St. Ilya- 
 cinthe Convention, on 17th December, 1862, treated 
 the question with marked ability. While those pub- 
 lished in the French language have, with few excep- 
 tions, advocated a trial of the scheme, many of tliose 
 published in English, have condemned its introduction 
 into the country with arguments which, at first sight, 
 seem quite conclusive. This may perhaps be ac- 
 counted for by the absence of works in the English 
 language which treat o^ the details of the Credit Fon- 
 der Institution as it has existed in several countries 
 of Europe, under different forms, since 1770. 
 
 We are justified in thinking that it is important that 
 the Representatives of the people of this country, who 
 are now assembled in Provincial Parliament, should 
 be placed in possession of something reliable in the 
 
VIU 
 
 shape of precedents, by which their judgment can be 
 guided in the consideration of this popular scheme. 
 To the French Canadian Members of Parliament, or 
 to those of other nationalities who read and speak 
 both languages, the promised work of Monsr. George 
 de Bouchervillc will supply the desideratum ; but our 
 intention, in humbly submitting this rough and imper- 
 fect sketch of the working of the system, is to place 
 the English-speaking Members of both Houses on a 
 footing of equality with their French Canadian con- 
 freres, at the outset of the discussion which will no 
 doubt take place on this subject. In our translation 
 of the works of the French authors, Josseau, Wolow- 
 ski, Vuhrer, Royer, &c., &c., we have closely followed 
 the text of the French version, and in compiling the 
 extracts suitable to each branch of the subject, we 
 have attached less importance to style, than to a literal 
 translation of the author's true meaning. Relying 
 upon the indulgence of the Members of the two 
 distinguished Legislative bodies, for whom this work 
 is principally intended, the writer's object will have 
 been gained, if an impartial investigation of every- 
 thing relating to the subject of the Credit Fonder 
 Institution, be partly induced by a perusal of the fol- 
 lowing pages, which are respectfully submitted by 
 
 The Author. 
 
 Quebec, 23rd February, 1863. 
 
1 be 
 ime. 
 t, or 
 )eak 
 orge 
 t our 
 iper- 
 jlace 
 on a 
 
 con- 
 ill no 
 ation 
 dIow- 
 3wed 
 gthe 
 t, we 
 literal 
 jlying 
 J two 
 
 work 
 1 have 
 every- 
 ^oncier 
 he fol- 
 [by 
 
 JTHOR. 
 
 THE 
 
 SYSTEM OF LANDED CREDIT 
 
 OR 
 
 LA BANQUE DE CREDIT FONCIER 
 
 CHAPTEIi 1. 
 
 5o^=^ 
 
 As the question of the establishment of a " Credit 
 Fonder Bank " in Canada, seems likely to attract a 
 large share of public attention during the present ses- 
 sion of Parliament, it may not be inappropriate to give 
 a general outline of the nature of the system which it 
 is proposed to introduce into Lower Canada. A scheme 
 has been adopted by the St. Hyaeinthe Convention, 
 which met on Hth December, 1862, and we purpose 
 analysing that scheme in all its important principles 
 and details ; we intend also to furnish to the English 
 public a translation of the opinions of the leading 
 political economists of Europe, who have had every 
 opportunity of judging of its utility and practicability in 
 all the countries where its principles have been legally 
 
^^ 2 <?=- 
 
 put into operation. During the last session of Parlia- 
 ment, members representing Lower Canadian consti- 
 tuencies, seemed to be intensely interested in a propo- 
 sition, the object of which was evidently to relieve the 
 " habitants" of this section of the Province from the 
 onus of debt which weighed upon their properties. 
 No public suggestion was made during the session, 
 as the measure was si ill in a crude and undigested 
 form, but it was very evident that something serious 
 was on the " tapis." Mr. De Boucherville visited Eu- 
 rope during the recess, and, on his return, a convention 
 was organized, which met at St. Myacinthe, on the 
 t7th December, 1862. The result of its deliberations 
 will be better explained by the following translation 
 of the petition which will be presented to Parliament 
 during this session : 
 
 PETITION, 
 
 ADOPTED BY THE CENTRAL CO.MMITTKE AT ST. HYACI.NTIIE. 
 
 To the llonoraUe the Lrgislatlve Assembly of Canada in Parliament 
 
 Assembled. 
 
 The Petition of the undersigned 
 
 RESPECTFULLV SHEWETII : 
 
 That the circumstances in which Lower Canada 
 finds itself, urgently demand the establishment of a 
 " Credit Foncier Bank " which should be formed on 
 a solid basis, and which would meet the wants and 
 be in accordance with the resources of the agricul- 
 tural class. 
 
 That this Bank should be established with a capital 
 subscribed by Shareholders, (Capital Social) to the 
 
-^ 3 •>- 
 
 amount of one million of dollars, divided into ten 
 thousand shares of one hundred dollars each. 
 
 That the Provincial guarantee should be granted to 
 the " Credit Foncier Bank " for an amount which 
 should not exceed " twenty millions of dollars ;" and 
 which should only be furnished in proportion to its 
 wants from time to time, and only on condition that 
 the first mortgages of the borrowers for an amount 
 equal to the said guarantee, be deposited. 
 
 That the Provincial guarantee should not involve 
 any Government control over the operations of the 
 " Credit Foncier ;" but simply a right of supervision, 
 to assure that its operations are carried on witliin the 
 limits of the law, and the powers whieii may be con- 
 ferred upon the institution. 
 
 That the annuity to be paid by the borrower should 
 include interest, sinking fund and the cost of manage- 
 ment. 
 
 That the rate of interest to be charged sliould be 
 regulated by the rate at which the " Credit Foncier 
 Bank " may succeed in ncgociating its bonds. 
 
 That the cost of management should be fixed at 
 one per centum. 
 
 That the amount of sinking fund to be annually 
 paid should be optional wiih the borrower, and 
 definitively settled in his mortgage or bond ac- 
 knowledging the loan ; provided that the amount of 
 his debt cannot be discliarged sooner than 20 years, 
 nor later than 50 years from the date of the loan ; he 
 
should have the power, nevertheless, of paying the 
 wliole debt by giving three months notice. 
 
 That the " Credit Foncier Bank " should be in- 
 vested with full power to collect outstanding debts by 
 proper process of law. 
 
 That until the mortgage system of the country be 
 thoroughly reformed, the " Credit Foncier Bank '* 
 should have at its disposal the means of ascertaining 
 what privileged claims may still exist on properties 
 on which mortgagees may be offered to it, and should 
 also possess the right of extinguishing them, promptly, 
 simply and economically. 
 
 And your Petitioners, as in duty bound, will ever 
 pray, &c., &c., &c. 
 
 The proposal of the St. Hyacinthe Convention may 
 be properly classed under the following heads : — 
 
 1st. The advisability of establishing a Banque de 
 Credit Foncier upon a solid basis, to meet the wants 
 of the rural population of Lower Canada. 
 
 2nd. The nature of the organization of the pro- 
 posed Bank. 
 
 3rd. Should Ihe Provincial guarantee be granted to 
 the Bank on the terms proposed, or if not, on what 
 terms ; or should that guarantee be refused ? 
 
 4th. If the guarantee were granted, should Govern- 
 ment be allowed the direction of its operations, or 
 should the power reserved be simply one of super- 
 vision to keep the institution within the limits of its 
 charter .i* 
 
the 
 
 -C5; 5 ;i^ 
 
 5th. The nature of the annual interest, sinking fund, 
 and per centage for management, to be exacted from 
 the borrower. 
 
 The regulation of the rate of interest. 
 
 Is the estimated per centage for cost of manage- 
 ment (1 per cent) sufficient to meet the probable ex- 
 penses of the Bank? 
 
 The conditions of loans, 20 or 50 years, with 
 the optional power of discharging the debt by 3 
 months' notice. {Paiement par anticipation.) 
 
 6th. Should the Bank be invested with extraor- 
 dinary power for collecting outstanding debts ? 
 
 The mortgage system systeme hypothecaire, Reform 
 of the system. Privileges granted to the Bank for 
 discovering the existence of mortgages which have 
 not been cancelled, easily, promptly and economically. 
 
 7th. A general review of the system, as it has been 
 worked in several countries of Europe. 
 
 8lh. Is the scheme practicable in Lower Canada, 
 should it be applied, and on what principle ? 
 
 In the following pages we propose to furnish to the 
 public, the opinions of the leading political economists 
 of Europe, under the several headings above desi- 
 gnated, adding some of our own opinions on the intro- 
 duction of the system into Lower Canada. 
 
 — cJ^tOH-Ss— 
 
CHAPTEH 2. 
 
 -=^0$S- 
 
 The advisability of establishing a Batigv.e de Cridit Fonder, upon a solid 
 basis, to meet the wants of the rural population of Lower Canada. 
 
 Any calm observer, who has resided for a length of 
 time in the country Parishes of Lower Canada, must 
 have perceived the peculiar position occupied by the 
 " habitants," or peasants of that section of the Pro- 
 vince. Itcannot be denied that they are healthy, active, 
 and industrious ; that they use every effort to improve 
 the properties which have been inherited by them 
 from their ancestors ; but there are evidently some 
 causes which produce efTects contrary to those which 
 we might expect from a class which enjoy so many 
 natural advantages. The soil is, on an average, good, 
 but the climate is not so favourable to agriculture as 
 that of the upper section of the Province ; the habitant 
 farmer is naturally intelligent and active ; he gains his 
 daily bread by the sweat of his brow, and laborious 
 exertion has no fears for him ; but there is a restrain- 
 ing power, a something which interferes with ulti- 
 mate success, and hampers the full and untramelled 
 exercise of his energy. He is continually accused of 
 being deficient in spirit of enterprise ; he is taunted 
 with following too closely in the footsteps of his pre- 
 
 b 
 a 
 
-*:0 7 0:^ 
 
 decessors ; he his frequently included in a comparison 
 with the superior race of farmers in Upper Canada, 
 the comparison resulting of course unfavourably to 
 him, and in fact, he is the butt of every publication, 
 whether agricultural, educational, or commercial. 
 The sinceie political leaders of the French Canadian 
 " habitants" have long been aware of the existence of 
 those unfortunate causes, which have restrained their 
 constituents in their onward progress, and they now 
 intend dealing with the germ of the disease, by the 
 application of what they consider to be a reliable 
 remedy, viz : the establishment of La Banque de 
 Credit Fonder. We maintain that the main causes 
 of the want of progress among this class, have been, 
 the weight of debt which burdens almost every far- 
 mer's property in the county parishes of Lower Ca- 
 nada, and the want of available means to place the 
 repayment of that debt on such a footing that it may 
 be easily accomplished. In addition to these, but of 
 course as relative consequences, we find a universal 
 system of ruinous usury, to which the overburdened 
 farmer is compelled to resort, to save his family from 
 expropriation; the real cause being the want of some 
 system through which the undoubted security lie can 
 offer, might enable him to obtain credit at a moderate 
 rate of interest. 
 
 Mons. VVolowski, in a treatise on this subject, pu- 
 blished in 1852, thus describes the principal object of 
 a *' Credit Foncier Bank" in France : — 
 
 *^ Public opinion has been actively occupied during 
 
8e^ 
 
 *' the past few years with the question of the " Credit 
 " Foncicr." Tiie published principles of this scheme 
 " are : to place landed property and capital in imme- 
 *' diate and favourable contact witii each other; to 
 *' remove the obstacles which prevent the establish- 
 *' ment of confidence when the security is really of 
 *' the most reliable kind; to facilitate tiie debtor's 
 *' discharge, and to place at the continual disposal of 
 *' t' creditor, the funds which he may have advan- 
 * .A. We think that the principle would long 
 " since have been adopted in France, had it not been 
 ** complicated by the suggestion of chimerical plans 
 " and false notions with regard to the nature and 
 *' operations of the proposed issues." 
 
 In 1853, Mons. Ileurtier, French Minister of Com- 
 merce and Agriculture, thus addresses Mons. J. B. 
 Josseau, author of a work on the " Credit Foncicr ": — 
 
 " The Credit Foncier Institution is still in its 
 " infancy in France ; but when its principles are 
 *' understood, and it is wisely ort?anised, the public 
 " curiosity, which its existence now creates, will be 
 *' followed by a general feeling of deep gratitude to 
 '' the Government, which has succeeded, by the means 
 " of this Institution, in relieving landed property from 
 " the terrible si ivery of debts payable at short date, 
 " with the usual consequences of expensive renewals 
 " and costly ])roceedings, generally followed by 
 " ruinous exi)ropriation. It is by this successful 
 " change in the conditions of loans on real estate, 
 " and the amendment of our mortgage system (sysleme 
 
 pr 
 
 is 
 
Credit 
 icliome 
 
 imme- 
 ler ; to 
 
 ublish- 
 ally of 
 
 obtor's 
 losal of 
 
 advan- 
 1 long 
 ot been 
 d plans 
 re and 
 
 f Com- 
 s. J. B. 
 cier ": — 
 
 I in its 
 lies are 
 e public 
 , will be 
 titude to 
 e means 
 ;rty from 
 ort date, 
 onewals 
 wed by 
 iccessful 
 
 II estate, 
 (systeme 
 
 *' hi/poiliecairc)^ thai landed projirielors, wlio have 
 " hitlcrly been reduced to the last tjasp, find a chance 
 *' of recovering their lost position." 
 
 We may well ask if the above extract is not a 
 correct picture of the position of thousands of our 
 country farmers in Lower Canada. In the seignories, 
 they arc oppressed wilii a li(;avy balance; of arrears 
 due to the Seigneur, tlirough the aboiitioii of the 
 Seignorial tenure ; and each farm has been divided 
 and subdivided until it has ceased to produce sullicient 
 for the maintenance of the numerous .scions of the 
 family who have to depend upon it alone i'or a live- 
 lihood. The sons emigrate to a new township, 
 without money, frequently without the materials and 
 food which they actually require to enable them to 
 exist during their preliminary clearing operations. 
 If they borrow money from a capitalist to enal)le them 
 to purchase what they require, he, of course, exacts a 
 mortgage on the parent's property at a rate of interest 
 as high as 15, 20, and sometimes 25 per cent per 
 annum. The consequence is inevitable, the young 
 farmer is hampered in his enterprise, while t'le parent 
 is harrasscd by the exacting capitalist. In many 
 cases the ruin of l)oth father and son is the result of 
 this attempt at progress. This is but one of the many 
 processes through which the lower Canadian farmer 
 is denied fair treatment. Merchants, who settle in the 
 country villages, are generally the bitterest enemies of 
 the habitant. They have the advantage of a credit in 
 the cities, they are not fettered by tlie difficulties 
 
-:. 10 <^ 
 
 whicli surround tlie farmer, and lliougli tliey liavc 
 but lilllo security lo oiler to the city merchant, still 
 they enjoy a good credit, and make use of it to oppress 
 the men who can olf'-r mort; real security than they 
 can, and who eonsi-'cpiently better deserve to liave 
 the benefit of credit in some available form. Your 
 country nol;iry, too, is freciuently a bird of prey. Ho 
 picks up game for the city cormorant who is too 
 indolent to search for it himself. As this notary 
 thoroughly understands the title deeds and means of 
 every farmer in the jiarish, he is in an excellent 
 position to become acquainted with the pressing 
 wants of Jean Baptistc, or Jean Pierre. He can, he 
 thinks, succeed in obtaining him the money ho requires, 
 but as a great favor, at about 15 or 20 per cent, on a 
 first mortgage, payable in a few years. Jean is in 
 a corner; he must make a C(!rlain payment on his 
 property, or he must send his son to tiie new settle- 
 ments, and he requires supplies which cost money. 
 The notary passes the deeds, and Jean, having re- 
 ceived the net proceeds, has a millstone round his 
 neck which will most probably drown him in a shorter 
 time than some of our English Newspapers give to the 
 borrower from the Credit Foncicr Bank. Having 
 thus briefly described some of the evils of the present 
 unorganized system of loan on mortgage, let us pro- 
 ceed to ascertain the nature of the basis upon which it 
 is proposed to establish this Banque dc Credit Fancier. 
 By referring to the petition of the St. Hyacinthe Con- 
 vention, it will be found that it is proposed to establish 
 
 
11 '^ 
 
 y liiivo 
 
 It, still 
 
 oppress 
 
 an they 
 
 () liiive 
 
 Your 
 
 Ho 
 
 ) is loo 
 
 ■y 
 
 notary 
 K-ans of 
 xccUcnt 
 crossing 
 can, he 
 eciuircs, 
 ;nt. on a 
 ian is in 
 ; on liis 
 kv settle- 
 money, 
 iving re- 
 mind his 
 a shorter 
 vc to the 
 Having 
 present 
 t us pro- 
 which it 
 Fancier. 
 the Con- 
 'stablish 
 
 a iiank, with a subscribed capital of one million ot 
 dollars, in ten thousand sihares of one hun(b'ed dollar^ 
 each. The Provincial guarantee is asked for, to- 
 enable the Bank to negoeiate its bonds in England. 
 The security oU'ercd in lieu of this guarantee is in the 
 shape (A'Jirsl m(»'fi^a<^-cs (Jmillfur clc f<)n<ls){\n tli" pro- 
 perties of the borrowers, guarded by lh'' importruit 
 condition thnt the Bank cruinot loan in esecss of 
 one half the estimated valu" of the ))roj)erty mort- 
 gaged. VV'(; shall not now enter into the details of the 
 working of the system, as such will coiii' under 
 its proper heading; but at the outset we claim that 
 the security offered by tlu; ))romoters of the scheme is 
 sufFiciently sound to warrant us in asserting that it is 
 proposed to form a Bank upon a solid basis. The 
 wants of the rural population are of such a prosing 
 nature, ihey are sullering so severely under the diffi- 
 cultie's which we have before described, thi't the 
 establishment of some public institution, formec! upon 
 a solid basis, which would procurer for the " l!;il)!l;ui1s''' 
 the advantages of a mod(M'ate credit on easy t'^ruis of 
 repayment, should at least deserves the attention of all 
 those who take an interest in the j)rogress of the 
 country. We cannot do belter than to conclude this 
 Chapter with the ])ithy (h^scription, given by Mr, 
 Wolowski, of the Credit Fonci'-r Institution in Poland 
 and Germany : — " Tlie Cr<''dit Foncier Institutions; 
 " which exist in Poland and Germany, by means (.f 
 " a simple but ingenious combination, permit a coui- 
 " promise between the requirements of proprietors 
 
 •i • 
 
•" Jiiid tilt! exigencies of Ciipilul, by marking llio gecu- 
 *' rily willi a stam[) of solidity, by assuring the regu- 
 '' lar payment of interest, and by providing for the 
 '' ultimate extinction of the debt incurred by the 
 *'• borrower, through tlx; establishiiK'nt of annuities 
 " which form a sinking fund {fonds d\inwrtissement),''^ 
 
 
 u 
 
 St( 
 
Ilf! 8CCU- 
 
 10 rt'gu- 
 
 for tlu; 
 
 by iho 
 
 inmiilics 
 
 r'TTAl^TKll 3. 
 
 -C50:>- 
 
 Tlie nature of the (ir^'niii/nlidn of the proposed Uaub 
 
 The projectors of this sclicmc have laid down, inr 
 clear tc'rms, the nature,' of the ])roj)oscd institution. 
 They say that it shoui<l be formed *' with a capital 
 sul)scribed by shareholders to the amount of one mil- 
 lion of dollars," or in other words, that it should bo 
 based as in Germany, upon the principle of associa- 
 tion. Josseau writes. " In the greater nunib(fr of 
 " the German States, the Bank is or<j:anized (sur la 
 " base de l'association)uj)on the basis of association. '' 
 
 In France the organization is thus describ<'d by 
 Josseau :" The object of" Credit Foncier" Instilu- 
 " tions is to furnish to propricrtors of immoveables, 
 " who wish to borrow on mortgage, the means o( 
 " paying the debt contracted by annuities at long 
 " date." 
 
 " In Germany, tlu; ' Credit Foncier' Institutions," 
 says the same author, " are divided into two 
 groups — one kind of institution is created and uiana- 
 gcd by tlu! [)roprietors themselves, who form a joint 
 stock society to enable them to borrow witliout any 
 specuhitive ot>jeet in vi<'w, but merely for the purpose 
 
<j 14 
 
 •of obtiiining money at a cheaper rate with greater 
 facilities fur the repayment." The societies of Wiir- 
 temberg, Prussia, Saxony, Pohind, Austria and Ha- 
 noviM" are established upon that principle. 
 
 Another species of society has been organized in 
 the interest of lenders as well as of borrowers. They 
 are established and managed by financial companies, 
 who, in S(Mving the interests of the landed proprietors, 
 make at the same lime some profit on their opijrations. 
 Tile mortgage Bank of Bavaria and the mortgage 
 Bank of Brussels are on this princi})Ie. The esta- 
 blishment of the first group, or " Societies of Borro- 
 wers," may rather be called " Loaning and Borro- 
 wing Agencies" than Banks. Thev never issue 
 notes; the only pieces of paj^er which they circulate, 
 are Bonds (Lettres de Cige) Pfandbriefe. In some 
 States, these bonds are handed to the borrowers, who 
 have tlie privilege of negociating them in the market. 
 In others, the Society undertakes the negociation of 
 these bonds, and pays the borrower in money. This 
 money is furnished by capitalists who invest their 
 funds in the Bonds of the " Credit Foncier" Institu- 
 tion 
 
 But whether they pay the borrower in money or in 
 bonds, these institutions make no surplus profit. 
 Th(.'y are in the position of pitblic oflicers, whose duty 
 it is on the one hand to pay over to the landed pro- 
 prietor, who contracts the loan, the amount which is 
 due to him, and on the other hand to represent the 
 ca[)iiulist who invests in stock, by carefully examin- 
 
\ 
 
 th greater 
 |e.s of Wur- 
 and Ha- 
 
 brs. 
 
 •ijanizcd in 
 They 
 companies, 
 )roprietors, 
 operations, 
 mortgage 
 The esla- 
 s of Borro- 
 and Borro- 
 lever issue 
 y circulate, 
 In some 
 jwcrs, who 
 the market, 
 ociation of 
 ney. This 
 nvest their 
 er" Institu- 
 
 loney or in 
 3] us profit. 
 IV hose duty 
 anded pro- 
 it which is 
 ^resent the 
 :v examin- 
 
 I 
 
 ing the nature of the security offered, and by taking 
 proceedings against any defaulting borrowers. The 
 directors of the Institution dispose of the annual re- 
 ceipts by payment of the interest to holders of bonds, 
 by the proper application of the sinking fund to the 
 credit of each borrower, and the formation of the 
 reserve fund ; and they merely keep a suflicient 
 balance to cover the cost of management. 
 
 The establishments of the second group, otherwise 
 called Societies of Lenders, (Societcs cle Prdteurs,) 
 have on the contrary the features of Banking Insti- 
 tutions. They possess a capital subscribed by Share- 
 holders. By moans of this capital, they are enabled, 
 at the outset of their operations, to pay money to the 
 borrower. That which distinguishes the latter from 
 the former group, is that out of the annuity paid in 
 to the Bank, a portion is reserved for the payment of 
 interest to the Shareholders. 
 
 Mr. Wolowski thus writes of the nature of an orga- 
 nization of this kind ; 
 
 " Is it not practicable for the landed proprietors of 
 any country to form themselves into an Association, 
 into a State Body, Corps cVElat, which can offer to 
 money-lenders a guarantee in solido, instead of se- 
 parate individual guarantees which are all that can 
 now be obtained ? At the present moment, the lender 
 on a mortgage is compelled to study with care the 
 solvency of the borrower to whom he trusts his funds, 
 and to examine both the natural and legal position of 
 the security ofifered. It is a fortunate circumstance 
 
-^ 16 ^ 
 
 for liim if, after the most minute and careful exami- 
 natJon of data, he does not find at a later date that his 
 apparently undoubted security has been destroyed by 
 the exercise of rights, the existence of which he was 
 permitted to ignore. On the contrary, by dealing 
 with an association of proprietors, compelled to exer- 
 cise a preliminary contjol, and organized in virtue of 
 a system by which they can offer the most indispu- 
 table security, capitalists lending money on mort- 
 gage would find themselves in the same position as 
 the creditors of the St ite. On the same principle as 
 the latter, they need not trouble themselves about the 
 particular position ol' each borrower, or tax-payer, 
 who may deal with the central power, the bonds 
 would have a uniform value, they would be trans- 
 ferred by one capitalist to the other, in the same way 
 as Consolidated Gov ^rnment Bonds, iitres de rented 
 
 The same author, in another part of his admirable 
 work on this subject, thus describes the Credit Foncicr 
 Institution : 
 
 " It is necessary ';o create a soiid intermedial power 
 " or body which w-ll act between the capitalists and 
 " proprietors of Ian 1, by generalising individual gua- 
 " rantees, and by marking them with a stamp of 
 " control previous y accepted by all as the type of 
 " undoubted security. This intermedial body must 
 " guarantee the viJue of the original security, and 
 " thus destroy the effect of vicious leijislation re- 
 " garding mortgage 's hypotherjues, it must promise the 
 " regular payment of interest, and must centralize the 
 
 <( 
 
 u 
 
 '% 
 ^ 
 
 i 
 
 iX 
 
 > \ 
 
17 0=-- 
 
 ful exami- 
 te that his 
 Istroyed by 
 h he was 
 y dealing 
 d to exer- 
 virtue of 
 t indispu- 
 on mort- 
 )osition as 
 'inciple as 
 about the 
 tax-payer, 
 the bonds 
 be trans- 
 same way 
 le rente.'''' 
 admirable 
 it Foncicr 
 
 lial power 
 alists and 
 dual gua- 
 stamp of 
 e type of 
 ody must 
 rity, and 
 ation re- 
 alise the 
 ralize the 
 
 
 % 
 
 " moneys derived from the sinking fund, so as to be 
 " enabled to offer to the proprietor the facility of repay- 
 " ing the amount of his loan by a gradual scale of 
 " small contributions, and, to the lender, the power of 
 *' realizing at any time on favourable conditions." 
 
 ** This intermedial body may be the State, an 
 " Association of proprietors, or a Company of Share- 
 ♦* holders." 
 
 The object of these Institutions is thus described by 
 Royer, French Minister of Agriculture, in his report 
 of 1845 : 
 
 1st. " To effect a general reduction in the rate of 
 interest demanded for the use of capital. 
 
 2nd. To place capital at the disposal of agricul- 
 turists at a uniform rate of interest, fre(|uently smaller 
 than the rate paid by the State, by trade, and by 
 manufactures. 
 
 3rd. To encourage and facilitate landed improve- 
 ments, by placing the capital advanced to proprietors 
 for the purpose of effecting those improvements, 
 upon a footing through which it can be easily repaid 
 at long date, it being impossible for agriculture to 
 repay such advances by any other means." 
 
 Mons. Passy, a French political economist of great 
 note, gives his views on the subject as follows : 
 
 " That there arc many reasons which lead him to 
 " believe that landed proprietors should be enabled to 
 " borrow money ' on the most favourable conditions.' 
 " The security offered is of such real value, that no 
 
^' prudent lender can qucjstion its solidity as aguaran- 
 " tee for investment. 
 
 " Tiiis cannot be jjetter accomplished than by the 
 " creation of some such organisation of proprietors." 
 
 We have not as yet been favoured with the details 
 of the organisation of the " Canadian Credit Foncier 
 Bank," but we are justified by the Petition to Parlia- 
 ment in supposing that it would be based upon the 
 principle of Association. The Shareholders to the 
 amount of one million of dollars would select, from 
 their ranks, the Board of Direction, whose duty it 
 would be to conduct the operations of the Bank. 
 
 The Central Board would no doubt decide upon the 
 nature of all applications, according to the principle 
 adopted by similar institutions in Europe, the duty of 
 tlie local agents being merely to report to the head 
 ofHce the details of information, and furnish the 
 documents required to enable the Board to arrive at a 
 decision. 
 
 Our object in this chapter has merely been to give 
 an outline of the nature of the organisation of the 
 " Credit Foncier." The details of its probable orga- 
 nisation will be treated under the heads of the Gcver- 
 ment Guarantee, on which mut:h will depend, the 
 Interest, Sinking Fund, Period of Loans, &c., &c., 
 
 We conclude with some general opinions given by 
 leading political economists on the subject of Credit 
 Foncier Institutions :--- 
 
 " Mr. Wolowski's idea is not a dream," said Mr. 
 Rossi, in concluding his report to the French Govern- 
 
 l^'! 
 
19!J=- 
 
 aguaran- 
 
 n by tlie 
 irietors." 
 10 details 
 Foncier 
 o Parlia- 
 upoii tlie 
 rs to the 
 'ct, from 
 'e duty it 
 .nk. 
 
 upon the 
 principle 
 3 duty of 
 he head 
 nish the 
 rive at a 
 
 to give 
 L of the 
 )le orga- 
 ; Gcver- 
 !nd, the 
 ^', &c., 
 iven by 
 
 Credit 
 
 lid Mr. 
 Jovern- 
 
 rnent ; " the system is more convenient, and }>rc.sc'nts 
 less difficulty than the mobilization of the soil [la mo- 
 bilisation dii sol). It is a hapjiy ap})li(^ation of the 
 principle of association, submitted to the manage- 
 ment, o* at least, to the suj)ervision of the State. In 
 another way, many obstacles to its success arc partly 
 overcome or entirely disappear." 
 
 A rclired Minister of Commerce, Mr. Buflbt, slated 
 in the debate before the Council of State, that he was 
 less opposed than he had been some years previous to 
 " Credit Foncier "Institutions. Even Mr. Thiers, in 
 a speech made in 1848, demanded that a trial should 
 be given to the scheme in France. Mr. Vernes, 
 Deputy Governor of the Bank of France, also expiessed 
 his approval of the proposed system. He said : " It 
 is not necessary to create the ' Credit Foncier,' it 
 exists ; it is only necessary to disengage it from the 
 embarrassments which surround it, and which curb its 
 free operation." This assertion is well founded. 
 " The Credit Foncier " really does exist, based upon 
 the guarantee of th(! soil. The mortgage debt (dette 
 hypothecaire) which burdens l(!rrilorial property is a 
 sufficient proof of this. But it exists under unfavora- 
 ble conditions ; it necessitates a very heavy rate of 
 interest, and, in its present state, it crushes the energies 
 of the borrower by a promise exacted from him to 
 return the amount in one sum at a date which is too 
 close to the date of the loan. 
 
I 
 
 OIIAPTKR 4. 
 
 'A{ 
 
 l 
 
 
 Should the Provincial Giiarantoe bo granted to ihe Bank, on the terms pro- 
 posed, or if not, on what terms ; or should that Guarantee be refused. 
 
 I 
 
 In dealing with this branch of our subject, we shall 
 commenco with the words of the petition of the St. 
 Hyacinthe Convention : 
 
 " That the Provincial Guarantee should be granted 
 " to the ' Credit Foncier Bank,' for an amount which 
 " should not exceed ' twenty millions of dollars ;' and 
 " which should only be furnished in proportion to its 
 " wants from time to time, and only on condition 
 " that the first mortcfajyes of the borrowers for an 
 " amount equal to the said guarantee, be deposited.'* 
 
 An application is thus submitted to the Canadian 
 liCgislature, to obtain its countenance and sanction 
 in the initiation of the enterprise. As a preliminary 
 precaution, the guarantee of the State is asked for, to 
 ena])le the Directors of the Credit Foncier Bank to 
 negotiate the bonds which they may issue. The pro- 
 jectors of the scheme have considered that the amount 
 of capital required to carry on operations on such a 
 large scale cannot be ol)tained in this Province. It 
 is very evident that the capitalists of England must 
 
 
 1 
 
-={5 21 «>■ 
 
 J I 
 
 he terms pro- 
 )e reliisecl. 
 
 1 
 
 WO shall 
 
 3 
 
 f the St. 
 
 
 ? granted 
 
 '' 
 
 nt Avhich 
 
 
 ars ;' and 
 
 ; 
 
 ion to its 
 
 
 condition 
 
 
 5 for an 
 
 ■ 
 
 )osited.'* 
 
 ^ 
 
 anadian 
 
 
 sanction * 
 
 
 iminary 
 
 1 
 
 d for, to 
 
 Bank to 
 
 . ' 
 
 ^he pro- 
 
 s 
 
 am on nt 
 
 ■-4-^ 
 
 such a 
 
 " i 
 
 ce. It 
 
 -}J> 
 
 I mnst 
 
 *■■ 
 
 furnish the greater part of the requisite fuii'ls. Can 
 this sum be obtained without the stamp of security 
 which the guarantee of the Colonial Government 
 would, undoubtedly, give to these Credit Foncicr 
 Bonds? We think this doubtful. The English capi- 
 talist would not iiesitate to lend his money on such a 
 reliable guarantee as that of the Province, while he 
 would probably object to advance money upon mort- 
 gages given by individual owners of landed j)roperty. 
 The very intention of a Credit Foneier Bank is to 
 give a stamp of security to these mortgag(.'s, and to 
 convert them indirectly into a circulating m(;dium, 
 which would be negociable on change. This, it is 
 proposed to eflcct through the issue of l)onds based 
 upon the Share Capital and mortgages; and the 
 Government Guarantee is re(iuired, not only to make 
 them negociable, but to render them so, at a low 
 rate of interest. The necessity of some such guaran- 
 tee must be apparent to any person versed in finan- 
 cial matters, particularly in the negociation of public 
 stocks. We have read in several newsj^apers of the 
 Province, that this proposed guarantee is unpreceden- 
 ted in financial matters ; that it would involve the 
 Province in a direct and irrecoverable loss of twenty 
 millions of dollars, that Jean Baptiste would pocket 
 the money, that the experience of the Municipal Loan 
 Fund is sufficient to condemn the proposition, that 
 the Government of Canada has sufficient work in 
 hand to collect debts now due, and that the security 
 offered by the projectors of the Credit Foneier Bank 
 
 
22^- 
 
 is in reality worth nolliing. That a State Gaarantee 
 in favor of similar institutions is not unpreccdentecl, 
 we can easily prove : 
 
 In France, by the decree of 8th July, I85i, we 
 find that th(; Government, with a view of f(jrward ing the 
 interests of " Credit Foncier " institutions, set apart 
 the surnt)ften millions of francs, to be invested in their 
 bonds (lettres de gage). The first " Credit Foncier " 
 institution was formed in Silesia,a Province of Prussia, 
 in 1770, after the seven years' war, under the auspices 
 of Frederic the Great, who gave it Government aid in 
 the shape of a gift of 1,125,000 Irancs. 
 
 Monsieur Wolowski, in speaking of a Government 
 Guarantee, in 1852, thus expressed himself: — 
 
 " The question as to whether the State should, and 
 " in which manner it should intervene, in the establish- 
 " ment of Credit Foncier Banks, has excited a great 
 " deal of lively discussion. A distinction should 
 " certainly l)e made between a pecuniary sacrifice 
 " made at the expense of all the tax-payers in ftivor 
 " of a certain class of proprietors, and the simple 
 " application of a financial mechanism without any 
 " direct contribution from the Exchequerof the State." 
 
 But the St. Hyacinth;^ Convention distinctly assert 
 that they only want the State to guarantee the amount 
 of their issue of bonds, to endorse their solidity, as it 
 were, to facilitate their negociation. They purpose 
 making their arrangements to pay the interest on those 
 bonds without the Government being called upon to 
 pay that interest ; and as security for this indispensa- 
 

 1.; a ran tee 
 •cclcnted, 
 
 85 i, we 
 rtlin<,Mhe 
 set apart 
 (1 in their 
 'oiieier " 
 Prussia, 
 auspices 
 nt aid in 
 
 'eminent 
 
 uld, and 
 stablish- 
 l a i^reat 
 I should 
 sacrifice 
 in favor 
 simple 
 out any 
 ; State." 
 y assert 
 amount 
 ly, as it 
 purpose 
 ni those 
 upon to 
 spensa- 
 
 ble endorsation, the morti^ages of the Ijorrowinij; pro- 
 prietors will be deposited for an amount ('(iniv;dcnt 
 to the i^'uarantee. As the Bank cannot advance to 
 borrowi'rs more than on(>-iialf the actual amount of 
 the value of the property mortgaged, the Government 
 would find itself at all times in possession of solid 
 security for doubh' the amount of its guarantee. 
 
 We can find nothing very objectionable in this pro- 
 posal. The Province cannot possibly risk the loss of 
 the amount it mav guarantee, as its coffers will con- 
 tain first class mortgages (Jmillcur dc Jomis) for 
 double that amount. We think that the Municipal 
 Loan Fund and the Credit Foncier Bank can scarcely 
 be ranked in the same category, and as a comparison 
 between the two has been instituted by Upper Canada 
 newspapers, we may be permitted to remark that 
 Lower Canada Municipalities did not show the same 
 rapacity in contracting loans from that fund, as the 
 other section of the Province. " Jean Baptiste of the 
 village of Z/'/mmflcu/Je Conception^ as the "Globe" 
 calls the Lower Canadian borrower, was much more 
 modest in his pretentions than James Smith or John 
 Brown, of the cities of Hamilton and Port Hope. 
 That the Government of Canada hav ; (piite enough to 
 do in collecting the debts already due, we arc quite 
 aware ; but the nature of the proposed guarantee can- 
 not properly be considered as an active debt, which 
 will become due to the Province without a chance of 
 re-payment. The security offered by the Credit Fon- 
 cier is of the most unquestionable character. 
 
 M 
 
-^ 24 
 
 But, on llic olluT hand, il tliis doniand for a P o- 
 vincial gnarantoc were not deemed to be pruden. in 
 the present condition of the iinanees of llie Province, 
 conld not the scheme of tliu St. llyacintlie Convention 
 be modified so as to put tlie j)rinciple of the Credit 
 Fonoior Institution into operation without the guaran- 
 tee of such a large amount. 
 
 The '' Franco Canadicn " of Iberville, and " Le 
 Ddfricheur " of L'Avenir, both journals published in 
 the French language, take exception to the plan of a 
 Government guarantee, and each editor sul)mits his 
 own scheme to the public. It would be imj^ossiblc 
 in our limited space to give the details of these two 
 new propositions, i)ut there is sufficient evidence 
 before us to justify the conviction that the .scheme of 
 a ' Credit Foncier Bank ' is practicable, and that the 
 subject can lose nolhing by a thorough public discus- 
 .sion. Why then should the Toronto " Globe," 
 Toronto " Leader," Montreal " Gazette," and Quebec 
 *' Chronicle," devote the scheme to immediate destruc- 
 tion without a careful consideration of the deiails of 
 the principles upon which it is based ? 
 
 Whether the Government guarantee be granted or 
 refused by the Legislature, or whether the proposal 
 of the St. liyac.aihe Convention be modified or not, 
 there seems to be a strong determination in the minds 
 of the " habitants " of Lower Canada that their repre- 
 sentatives shall give the subject fair consideration, 
 and Upper Canadian Members of Parliament would 
 perhaps find it advisable to take the same course. 
 
 m 
 
25 
 
 for a P o- 
 
 priiden. in 
 
 Province, 
 
 lonvention 
 
 lie Credit 
 
 le guaran- 
 
 and *' Lc 
 )ii.shed in 
 
 l)lan of a 
 l)mits his 
 mjiossible 
 :hcse two 
 
 evidence 
 elicme of 
 d tiiat the 
 ic discus- 
 " Globe," 
 d Quebec 
 e destruc- 
 deiails of 
 
 ranted or 
 ! proposal 
 d or not, 
 the minds 
 leir repre- 
 ide ration, 
 nt would 
 Durse. 
 
 VVe had been led to believ(! that the schi^me is 
 exclusively of Lower Canadian origin; Upper Canada, 
 of course, could have nothing to do with it. Public 
 opinion has, however, already conirneneed to deal 
 with the " Credit Foncier " scheme in that section of 
 the Province, and (^ven the Government Guarantee is 
 not condemned by some of the political economists of 
 Upper Canada. 
 
 At a meetini? of the Canada Landed Credit Com- 
 pany, held at Victoria Hall, Toronto, C. W., on the 
 5th of the present month, several speeches were made 
 on the subject of Landed Credit. Mr. Symons, Secre- 
 tary of the Company, in the course of his remarks, 
 thus alluded to the Credit Foncier scheme, and the 
 Government Guarantee : 
 
 " Now, come what may, the farmers of Upper 
 " Canada are ready to join in any sound plan, in any 
 " well organized movement, whether it be by the 
 " ' habitants ' of Lower Canada (many of whom are 
 " as good practical farmers as any to be found in 
 " this section), or whether it be a plan propounded 
 " by the Government itself, which shall have for its 
 *' object the prevention of ruinous bargains in mort- 
 " gage transactions. The farmers of Upper Canada 
 " will not consent to pay ten and twelve, and in 
 " many cases sixteen per cent for money, when by 
 " union among themselves, or with Lower Canada, 
 " they can get it supplied to them at six or seven per 
 " oent." 
 
1 
 
 Again he says : — 
 
 " A3 wo liavn not the scliomn of tin? Credit Foncior 
 " bcforo us, and llio papers will not enlighten us on 
 " the subj(,'ct, wc cannot suy anytliini^ about it, and 
 " all I should wish to ask tlu; farmers is, that they 
 *' sihould withhold their jiulgment till the ))lan is 
 " befor(! u« in its entirety." 
 
 " Ijefore the newspapers venture to tell us that the 
 " country, if this guarantee is given, will be burdened 
 " with fifty millions more debt, which it will have to 
 ** pay, I should like them to tell me of one of the 
 '* many Governments of Europe which have given a 
 " guarantee to their Landed credit institutionf?, they 
 " have seen established for the last one hundred years, 
 *' which has ever been called upon to pay a single 
 " fraction of that guarantee." 
 
 He concluded his spirited speech as follows, for 
 which he is taken seriously to task by the Toronto 
 " Leader " :— 
 
 " I would not wish to say a word which should 
 " grate on the feelings of those who view with self- 
 " complacency the present state of the farming com- 
 " munity. But I say it is not satisfactory. I believe 
 " that one third are in the constant process of losing 
 " their estates, and I believe another third arc always 
 " in straitened circumstances little less distressed, if 
 " any less distressed, than the ' habitants ' of Lower 
 " Canada, entirely owing to the unsoundness of our 
 " loan system : and with them, they will co-operate 
 
 I 
 1 
 
 M 
 
 ■M)L 
 
dit Foncior 
 
 
 fhtcn us on 
 
 
 i){)ut it, nnd 
 
 
 *, Ihiit tlicy 
 
 
 he plan is 
 
 * 
 
 us lliut the 
 
 
 ic burdened 
 
 
 iTill have to 
 
 
 one of the 
 
 
 Lve given a 
 
 
 itlons, tliey 
 
 
 dred year?*, 
 
 
 ay a single 
 
 tfr 
 
 follows, for 
 
 
 he Toronto 
 
 
 lich should 
 
 f 
 
 r with self- 
 
 
 rming com- 
 
 
 I believe 
 
 }' 
 
 ?s of losing 
 
 
 are always 
 
 
 i stressed, if 
 
 
 ' of Lower 
 
 
 iness of our 
 
 
 co-operate 
 
 
 
 ^A 
 
 ^;r 27 «>- 
 
 '« in any |)lan wiiich shall fgivu them the pronnisc of 
 
 " speedy relief." 
 
 Mr. Syinons' words descrvi.- serious consideration 
 at the hands of th.- farmers of Upper Canada, wiiilo 
 MF. deserves th<' hearty thanks of tht; 'habitants' ol 
 Lower Canadu for having thus spirit<uliy uttfre<1 them. 
 
 -cj^^o- 
 
 3« 
 
CPIAPTKR o 
 
 ^0^^ 
 
 •" If the guarantee wore granted, should Government be allowed the direction 
 of the Bank's operations, or should the power reserved be simply one 
 of supervision, to keep the Institution within the limits of its Charter." 
 
 One of the most important considerations of the 
 many which have occupied the attention of legislators 
 witli regard to the establishment of Credit Foncier 
 Institutions, is liiat of ascertaining to whom should be 
 confided the duty of organizing and managing those 
 institutions. In several countries, Russia, for instance, 
 they have been organized by the State, and are placed 
 exclusively under the management of Government. 
 But in the greater number of German States, they 
 have been established on the basis of Association. 
 Josseau writes : " When the merits of the quesfion 
 were thoroughly discussed in France before the Stale 
 Council (Conseil d'Etat), it was argued that the 
 Credit Foncier Institution could not be of any real 
 service to landed property unless its operations were 
 controlled by the State. The agricultural interests 
 want money, say at 3 per cent, that is to say, at a 
 rate equivalent to the revenue derived from the soil. 
 Now, the State has nothing to gain by speculation, 
 and thus has the power of giving an advantage to 
 
 
-=& 29 3>- 
 
 veiltho direction 
 (1 be simply one 
 of its Charter." 
 
 ions of the 
 f legislators 
 iit Foncier 
 n should be 
 iging those 
 br instance, 
 I are placed 
 overnment. 
 tates, they 
 issociaiion. 
 le quesfion 
 ■e the State 
 d that the 
 )( any real 
 tions were 
 d interests 
 t> say, at a 
 m the soil, 
 peculation, 
 v^antage to 
 
 proprietors. Individuals will rarely loan money under 
 5 per cent. Credit Foncier Institutions^would there- 
 fore succeed but imperfectly, and they could not sur- 
 vive the crises which occur so frequently in this 
 country, without some such assistance." 
 
 In an analysis of th(; bill submitted to the Legisla- 
 tive Assembly of France, on the 8th August, 1850, 
 Mr. Dumas, Minister of Commerce and Agriculture^ 
 thus expressed himself : — 
 
 " It must b(; understood that the people of the 
 country must not remain forever in leading-strings. 
 It would be absurd to impose upon the State the duty 
 of doing (everything. The State should operate in a 
 higher sphere ; its true attributes cannot be considered 
 as inckistrial or commercial, and still less should bank- 
 ing operations be part of its duties. The State should 
 exercise a genernl supervision, and should protect 
 every branch of labi)r, tmd the general pecuniary in- 
 terests of the people. — Its contrcl is indispensable 
 however in tlie case of Credit Foncier Institutions ;. 
 but to give the Government the management of them^ 
 would be to impose too much responsibility upon that 
 body." 
 
 The decree of the 28th FY'bruary, 1852, thus lays 
 down the nature of th(.- control which the Government 
 exercises over the Credit Foncier Institutions in 
 France : 
 
 " Credit Foncier Societies, whose object shall be 
 " to lend money to landed |)rf)j)rietors on mortgage, 
 '^ with the power of repaying the loan by annuities at 
 
-^ 30 z^ 
 
 '• long date, may be incc rporaled by a decree of the 
 " President of the Rcpub'ic, with the consent of the 
 " State Council (Conseil d'Etat) : these societies will 
 '" then enjoy the benefit of the special powers and 
 *' privileges granted to such societies by the present 
 ■*' decree." 
 
 Count Persigny, in a circular addressed to the pre- 
 fets of the diilerent departments of France, when the 
 decree was issued, thus lays down the nature of the 
 control to be exercised by the Government : 
 
 '' This decree, you will observe, does not thoroughly 
 organize Credit Foncier Institutions, Its meaning is 
 to encourage the formation of such societies, by laying 
 •down clear rules upon which they must be carried on, 
 and by removing the obstacles which they will unde- 
 niably meet with in our civil legislation. They are 
 submitted to the authority and supervision of Govern- 
 ment, and to facilitate their operations, the State pro- 
 mises its assistance, within the limits, and with the 
 guarantees, of the prudence and wisdom of which 
 you will be enabled to judge. 
 
 In the decree of the 23th February, 1852, the assis- 
 tance of the State is thus granted : 
 
 Article 5. — In order to facilitate the operations of 
 the Credit Foncier Societies, the States and the de- 
 partments shall invest in a certain amount of the bonds 
 (titri's de gage) of these societies. " Each decree 
 organizing a separate society (Credit Foncier) shall 
 express the amount of the share allotted to the So- 
 ciety, out of the Government grant of 10 millions." 
 
 *^N^^..._.. 
 
-=js31 tj= 
 
 ^crce of the 
 hsent of the 
 )cietics will 
 )owers and 
 
 the present 
 
 to the pre- 
 , when the 
 ^ture of the 
 t : 
 
 thoroughly 
 meaning is 
 s, by laying 
 J carried on, 
 ' will iindc- 
 They arc 
 11 of Gove rn- 
 G State pro- 
 id with the 
 1 of which 
 
 I, the assis- 
 
 lorations of 
 iid the de- 
 •f the bonds 
 Lch decree 
 cier) shall 
 to the So- 
 llions." 
 
 In some countries of Europe, we find that Credit 
 Foncier Institutions, in their relations with the State, 
 exist under regulations which differ widely with each 
 other, according to the plan of organization. 
 
 These difl'erent systems may be found in operation 
 in Germany, Poland, and Belgium. The greater 
 number are based upon tin; principle of an Association 
 of Proprietors ; these are : 
 
 1st. — The Credit Foncier Associations established 
 in the diflerent Provinces of Prussia (we will adopt 
 chronological order,) in Silesia, in the electoral Duchy 
 of Brandenburg, in Pomerania, West Prussia, East 
 Prussia, and the Grand Duchy of Posen. 
 
 2nd. — The Credit establishments of the Kingdom of 
 Hanover, these arc : The Institution of Credit by 
 Mortgage (credit hypothecaire) of Hamburg, establish- 
 ed at Zelle, the Credit Foncier establishments for the 
 Principalities of Calenberg, Grubenhagcm and Ilil- 
 •desliiem ; those established for the Ducb.y of Bremen 
 and the principality of Yerden at Stadc, and those 
 formed for the principality of West Friesland. 
 
 3rd. — In Austria, the Credit institution of Gallicia. 
 4th. — The Credit Institution of Wurtcmbcrg. 
 
 5lh. — In Saxony, the Association of the Kingdom 
 of Saxony, and the Mortgage Bank of the provincial 
 States of Hamburg. 
 
 Gth. — The Credit Foncier Institution of Meck- 
 lenberg. 
 
 7th.— The Credit Bank of Hamburg. 
 
 ,M 
 
-<^ 32 3>- 
 
 ■ 8th. — At Bremen, a Credit Institution which gua- 
 rantees the issue of mortgage bonds for proprietors. 
 
 9th. — In Denmark the law of the 20th of June 1850, 
 authorizes the establishment of Credit Foncier Insti- 
 tutions, based upon an Association of Borrowers. 
 
 lOlh. — In Russia, the Credit Associations of the 
 Baltic jH'ovinces (Livonia, Esthonia and Courland) 
 and the Peasant's Bank in the same provinces. 
 
 11th.— The Society of Territorial Credit of the 
 Kingdom of Poland. 
 
 All the establishments, which we have named above, 
 are in operation under the supervision of the State, 
 some of them with its concurrence. There are many 
 other institutions founded and regulated by financial 
 companies for a speculative purpose, to which we 
 need not allude at present. 
 
 It will therefore rest with the legislators of Canada 
 to consider in the first place, whether the Government 
 guarantee can be granted to the Credit Foncier Bank 
 according to the programme of the St. Hyacinthe 
 Convention. Should it be decided that the financial 
 position of this Province would justify such a guaran- 
 tee based upon such sound security, then of course, 
 the Government would be entitled to supervise the 
 operations of the Bank. It would be manifestly im- 
 prudent in any case to allow the Government to 
 exercise a direct control over the details of its opera- 
 tions. Such power might unfortunately be placed in 
 dangerous hands, and a gigantic system of political 
 corruption might be fostered through the exercise of 
 
 ^- 
 
33 c^ 
 
 »ed above, 
 
 the State, 
 
 arc many 
 
 financial 
 
 which we 
 
 >f Canada 
 )vernment 
 2ier Bank 
 Jyacinthe 
 financial 
 I g'laran- 
 f course, 
 rvi.so the 
 eslly im- 
 ment to 
 ts 0])era- 
 laccd in 
 political 
 ?rcise of 
 
 that power. It is fair to suppose that the directors of 
 the institution should bo shareholders immediately 
 interested in the welfare of the Bank, and that Govern- 
 ment control should be confined to a general 
 supervision of its operations, so that it maybe carried 
 on within the limits of its Act of Incorporation. The 
 conditions imposed by the Charter should be based 
 upon strict principles. The decree of 28th March 
 1852, which created " La Banque Fonciere de Paris," 
 might in many res])ec1s be taken as a model, and the 
 several decrees relating to the Credit Foncier Banks 
 of Marseilles and Nevers, both of which were incorpo- 
 rated with " La Banque Fonciere de Paris," on the 
 20th July 1852, would also furnish ])recedents which 
 might be advantageously applied in Canada. The 
 Statutes of the ^' Credit Foncier de France " of that 
 date to be found in Mons. Josseau's useful work, 
 give a detailed statement of the organisation of that 
 successful institution. 
 
 We think that our readers will now be enabled to 
 judge of the merits of the question which forms the 
 text of this chapter. If the guarantee be granted, the 
 nature of the control to he exercised seems to be fully 
 laid down by precedent, and if it be refused, and a 
 Bank is established without that guarantee, then the 
 supervision of Government would still be a prudent 
 measure. Of this, we purpose treating more fully in 
 chapter No. 7, which will deal with the proposed 
 reforms in our mortgage system (systemc hijpoUi^caire.) 
 
CIIAPTKR 6. 
 
 _-.*\ -.•>-- 
 
 >t<-~ 
 
 The nature of the Annual Interest, Sinking Fund, and Percentage for 
 management to be exacted I'roni tlie Bonower. — The regulation of the 
 rate of Interest. — Is the estimated Percentage for cost of inauagement, 
 one per cent, fullicient to meet the probable expenses of the Bank? — 
 The conditions of Loans (20 or 50 years) with the optional power of dis- 
 charging the debt by giving three months' notice, (paienient par anticipa- 
 tion). 
 
 The annunl interest, the sinking fund, and the cost 
 of management, are called in Europe by the collective 
 appellation of "Annuity." The amount to be paid in 
 by the borrower as an annuity, represents these three 
 items, and it varies in percentage in the difterent 
 countries where Credit Foncier Institutions arc in 
 operation. Monsieur Josseau thus describes this 
 annuity :-- 
 
 " The annuity is the amount paid in each half year, 
 or year, by the person who borrows from the Society. 
 By paying in this amount for a certain number of 
 years, he extinguishes the debt." 
 
 The St. Hyacinthe convention proposes to fix the 
 rate of annual interest at the figure which the Bank 
 will have to pay in ncgociating its bonds. 
 
 The cost of manrigement is esiablished at one per 
 cent, and the amount of sinking fund to be annually 
 paid in, is to be optional w^tli the borrower, provided 
 
 
 V^ 
 
tv 3o ^ 
 
 [ercenlage for 
 
 pilaiion of the 
 
 iiiianagement, 
 
 "'« Bank?-- 
 
 Power of dis. 
 
 P par aiitic/pa- 
 
 itl the cost 
 ooIJective 
 'e paid in 
 Jiese three 
 different 
 IS are in 
 •ibes this 
 
 lalfyear, 
 
 Society. 
 
 tmber of 
 
 o fix the 
 e Bank 
 
 me per 
 mnally 
 •ovided 
 
 the rate of sinking fund be menlioned in his deed, and 
 that it be according to the tal^h* of a k)an for twenty or 
 iifty years, neith(>r more nor less. 
 
 To ilhistrato Ihe workinc; of this sv:>item, we shall 
 give some examples translated from the memoranda 
 of Mons. Gcrdolle, the chief accountant of'Le Credit 
 Foncier dv. France." The^^e will render all explana- 
 tion on our part quite unnecessary : 
 A Landed Proprietor borrows from the Credit 
 Foncier Bank the sum of (filOO) one 
 hundred doil;.^rs, to be repaid by annnities 
 in 50 (fifty) years. The loan is made at a 
 fixed rale j)er annum of $5 . 45 (five dollars 
 
 and forty-five cents) thus ilivided $5.45 
 
 Interest f 4 . 25 
 
 Cost of man;i<i:emeht 60.88 mills. 
 
 Sinkintf Fvmd 
 
 59. 12 mills. 
 
 S ay $5.45 
 
 This apparently small sum of 59c 12m, capitalised 
 each six months will produce in interest at the end of 
 the first year G3m, or in all 59c 75m. This sum pro- 
 duces in interest at the end of the second year 2c 55m, 
 wliicli added to tlu^ sum of 59c 75m, paid by the bor- 
 rower, gives a sinking fund of 62e 30m. Add this 
 sum to that of 59e 75m, which represents the sinking 
 fund of the first year, we will find at the end of the 
 second year a sinking fund (piiid in) of 'pi .22c 05m, 
 s<; that on the loan ofij^lOO, the balance remaining due 
 is $98 77c 93m. By continuing this system of capi- 
 
 ■m^ 
 
3G 
 
 talization, llic following results can bo matliomatieally 
 arrived at. At the end of ten yimrs, the sinking fund 
 will have reached fi7.27c 26in ; at the end o{ twenty 
 year*!, !^ 18. 31c 73in ; at the end of tlLxrty years 
 $35. 21c 18ni ; at the end o{ forty years, $G0.89c 31m ; 
 and finally at the end of fifty years it will have reached 
 1^100, and consequently the capital is paid up in full, 
 and the dehtor is free. 
 
 Mr. Gerdolle observes, on the subject of the annual 
 interest that, " While the amount of the Sinking 
 Fund, devoted to the ultimate extinction of the capital, 
 gradually increases each succeeding year, the balance 
 of that capital, subject to the payment of interest, 
 gradually decreases." 
 
 Thus our readers will remark that, while the Sinking 
 Fund progresses but slowly during the first few years 
 after the loan, it incrc^ases very rapidly during the 
 latter years. 
 
 As the portion of th(^ annuity paid to the Sinking 
 Fund remains at the same figure each year, through- 
 out the duration of the loan, and as the rate charged 
 for cost of management, and the rate t)f interest on the 
 balance due, tlo not vary : the amount taken each 
 half year for the clearing off or payment of this debt 
 diminishes in proportion to tiie reduction of the capital 
 itself. Consequently, the amount of annuity which i^' 
 carried to the credit of the Sinking Fund increases 
 annually by so much, and it produces by capitalization 
 a sum of interest which also increases progressively. 
 
 As an exainple, let ns take the sum of iJtdOO bor~ 
 
 ro\v1 
 
 per 
 
 o{'\ 
 
 the 
 
 be 
 
 ycf 
 
 
 ^ 
 
 •v^^ 
 
f 
 
 §• 
 
 I'lg fund 
 >f twenty 
 
 ^y years 
 renohed 
 
 'Annual 
 Sinkin 
 capital, 
 J'llance 
 iforosf, 
 
 •inlvino- 
 '^ years 
 '\? I ho 
 
 niving- 
 
 aiged 
 n !he 
 oacb 
 debt 
 pital 
 ;ii U 
 ises 
 ion 
 
 y. 
 
 or- 
 
 -=5. 37 •)- 
 
 rowed from tin; Credit Foncier, ai the rate ol'^-t-SS 
 per cent intcri'si, to he re-paid, in 50 years, hy means 
 of an annual contribution of '^p.Xo. The first year, 
 the portion of this contribution taken for interest will 
 be $4 2ic 37m (calcnlafiKl at tlic; end of eiieh half 
 year), that reserved for the Sinking Fund will be 
 ^0 59c 75m. Let ns now pass on to the 'Oth year, 
 at the beginnini^ of which there will only l)e a ba- 
 lance of ^93 60c duo on the caj)ital. The interest 
 payable this year will only be !^3 9(jc, and tin.' Sin- 
 king Fund will have increased from %Q 59c 75m to 
 ^0 87c 13m. In the 40th year, at the beginning of 
 which the balance remaining due on the capital will 
 be $42 18c, the interest will only be %\ 76, and the 
 Sinking Fund $3 08c. Finally, in the 50th year, at 
 the commencement of which the balance due will be 
 $4 69c, the amount payable for interest will be only 
 15 cents, while the capital paid ofl' will be %\ 69c. 
 
 We have reproduced these calculations which are 
 of the most reliable description, as a reply to the 
 vague and (erroneous figures published by some of 
 the English newspapers of the Province. One news- 
 paper, published in Lower Canada, warned the habi- 
 tant to beware of the snare which was being laid for 
 him. He was to pay by the Credit Foncier Scheme 
 "no less than 400 percent" for the use of money during 
 a period of 50 years ; or, in other words, that the ca- 
 pital would be paid to the Bank, four times over, 
 during that space of time. 
 
 To prove the absurdity of such calculations, and 
 
 
-^ 38 J!=- 
 
 llic lack of knowledge of the suhjoct ovinrod by that 
 wrlt'^r, Icl us make a comparative statement : 
 
 An individual borrows from tlio Credit Foneier the 
 sum of $10,000, ])ayablc in 20 years. 
 
 At the rate of four and a quarter per cent per an- 
 num interest, the annuity payable would be ^807 23 : 
 what amount docs he really pay into the Bank in the 
 cour.se of 20 years ? He pays |il6,lM 75, from which 
 sum we might fairly deduct an amount which he 
 must have realized by the enjoyment of that amount 
 of capital for such a length of time. Let us suppose 
 on the contrary that the same individual borrows 
 from an ordinary capitalist the same sum, at five per 
 cent interest, how much must he disburse in capital 
 and interest to obtain his discharge ? $20,000 ! Should 
 he select the term of 50 years; with the Credit Fon- 
 der, at four and a quarter rate of interest, by the 
 payment of an annuity of $544 12, he pays oil' the 
 debt by a total disbursement of $27,20G. By the or- 
 dinary system of loan it would cost ^5,000 to efTect 
 the same object. 
 
 The advantages which would accrue to the borro- 
 wer from such a system must be patent to every rea- 
 der. The regulation of the rate of annual interest 
 cannot be attempted until the Credit Foneier Bank 
 has attained a position of greater stability. The 
 scheme must be brought before Parliament and tho- 
 roughly discussed in all its bearings, both with regard 
 to the guarantee of the Province, and the nature of its 
 organization, before any attempt can be made to fix 
 
 l|W^ 
 
-:« 39^^ 
 
 the rate of interest. It is eiirreiilly believed however 
 that six per eent would he the maximum rate. 
 
 We incline to the o|)ini(»n that the percentage lor 
 cost of management, mentioned in the programme of 
 the Convention, will scarcely meet the expenses of the 
 Bank for the first ten years. It is a small commis- 
 sion, and the Bank would liave to engage in large 
 transactions to provide a sufficient sum for the 
 payment of its ofiicers. The general expenses of 
 such Institutions are also very large. Josseau thus 
 writes on the subject of cost of management {frais 
 (Vadministralion). 
 
 " Credit Foncier Institutions cannot exist \\'ithout 
 " the payment of their expenses. The amount of 
 *' these expenses are of course regulated by the area 
 " of country over which the Bank carries on its ope- 
 ** rations. The ' Credit Foncier de France' cstima- 
 " tes the expenses at 60 cents j)er one hundred dol- 
 " lars, and the Credit Foncier Societies of Nevers and 
 ** Marseilles, 50 cents per one hundred dollars per 
 " annum." 
 
 The loans on the continent of Europe are generally 
 contracted for 20 or 50 years ; but in Poland, as they 
 fixed the interest at 4 per cent, and sinking fund 2 
 per cent, the debt is paid off in 2S years. In the 
 Duchy of Posen they were satisfied with 1 per cent 
 sinking fund, added to 4 per cent interest ; the sum 
 being repaid in 41 years. The system of loan for 
 either 20 or 50 years has been adopted in Franco, 
 based upon the experience of other countries. 
 
 ^1 
 
 111 
 
We hIwiU cohcIikIc tliis Cliaplor with some vjiluublc 
 renmrks, miuin before the French Council of Slutc in 
 1852 by iMons. IJoussinguult who is a jUfood authority 
 in agricultural matters : — " VVlieii we generally speak 
 of the revenues derived from agriculture, two things 
 are included underllie sametitle, whicdjit isabsolutely 
 necessary to sc-parati* : the revenue produced by the 
 soil, and the profit of the farnu'r'a labor. I certainly 
 believe that, to borrow money at (5 to 8 per cent for 
 the purpose of purchasing land which will only yield 
 2J per cent, is a bad speculatit)n. It is to this kind 
 of operation that I attribute the principal cause of the 
 deplorable situation in which many of our country 
 farmers are placed. The case would be very diil'erenl 
 if the agriculturist borrowed solely for the purpose of 
 increasing his stock of working materials, or to im- 
 prove his system of cultivation ; in this instance, he 
 could aflbrd to pay as high a rate of interest as any 
 class engaged in any other industrial pursuit. We 
 continually hear the complaint that agriculture does 
 not prosper because farmers can only obtain money 
 at an interest of G to 8 per cent, when it is notorious 
 that the revenues of the soil rarely reach the figure of 
 3 per cent. It is here that we can properly apply the 
 distinction whiih we have established above. There 
 is in the first place the capital invested in the purchase 
 of the land, and it is natural that this should yield a 
 small revenue. The smallness of the income is ex- 
 plained by the solidity of the investment. 
 
 Next in order comes the capital invested in making 
 
 ,1^- 
 
-<: 41 8>- 
 
 
 iiuprovemeiils on ilif property, and tliis spcciilation 
 geniTJilly produces as inucli in thai, as in any other 
 industrial branch, otlicrwiso there would Ix^ no advan- 
 tage in I'olhnving agricultural pursuits. This (•a))ital 
 whicii i,s used for improvements, being small in propor- 
 tion to the actual value of the land,itfrc!(juenlly huppens 
 that large proprietors who cultivate their own valuable 
 farms, scarctdy obtain a greater revenm' than when 
 they lease them out. It does not follow from this, 
 that the capital invested in improvements does not 
 give a reasonable percentage. As an example, let us 
 suppose that a farm worth 500,000 francs, recpiires for 
 reasonable improvements a capital of 50,000 francs. 
 By leasing it out, the proprietor might realize 15,000 
 francs per annum : by working il, 19,000 francs might 
 be obtained. In the first case the interest would be 
 3 per cent, in the second case 3 4-10 per cent, Tiie 
 difference is small, nevertheless it is plain that the 
 "working capital" yields 8 per cent to the farmer. 
 The object of agricultural speculation is not the pur- 
 chase of land, but in reality the working of land ; and 
 loans for this object, can sun^ly be effected on the 
 same terms as for other industrial speculations. If 
 therefore, as it is pretended, a system can be found, 
 through which landed ])roperly obtains the facility of 
 procuring the use of capital at a cheap rate, to be 
 repaid at long dates ; the profits of agriculture would 
 naturally increase, and with those profits, we would 
 find decided progress in the country.'" 
 
 Two important conclusions can be arrived at 
 
-<5 42 5>- 
 
 ihrongh this remarkable opinion : the first is that 
 rural improvements may become the basis of an 
 agricultural credit, which would prove very })rofitable 
 to farmers, although the rate of interest would be per- 
 haps as high as that exacted in commercial operations. 
 The second is, that if the " Credit Foncier " or the 
 credit of the proprietor is used, not for the purpose of 
 paying the price of the land, but for effecting local 
 improvements, (ameliorations foncieres) he will be 
 able more easily to meet a high rate of interest on the 
 capital thus used, than on the capital invested in the 
 land itself. Finally, in the mixed position in which 
 the pioj)rietors, who operate directly, and who owe a 
 balance on the purchase price, find themselves ; it 
 becomes necessary to restore to the soil that sound 
 state of credit, of which difficulties of procedure and 
 organisation have hitherto deprived it. 
 
CHAPTER 7. 
 
 -==^■ 
 
 '' Should extraordinary privileges for r'olleetingont.standingdeblsli'rranUH; 
 to the Bank? Ls a reronu required in the iaortgas,o .'s\>leiii d^^'fu r/u 
 hy2'othecairf, to enable the Credit Foncier Bank to discover pron)];'!)-, 
 easily and econjinieally, the existence of iii(jrtj:ag».'S ■which havo fK.t 
 Lean cancelled,"-' 
 
 The protection of the State is a sine qua nan in ilie 
 formation of Credit Foncier Societies. In a previous 
 Chapter, the truth of this assertion has been made 
 evident. While some doubts may arise in llie minds 
 of legislators as to the prudence of granting ihe gua- 
 rantee of the State to the Bonds issued by the Society, 
 no doubt can possibly exist as to the nece-sity of 
 legislation, both to give it the stamj) of a trnMic 
 institution and so to amend the defects in the rn; f- 
 gage system of any country in which a Bank of Credit 
 Foncier may be established; as to secure for tlie 
 Society the means of discovering promj)tly, easily an-.t 
 economically, the existence of mortgages which have- 
 not been cancelled. To attain this object in Canada,, 
 it would be necessary to place the system of Regis- 
 tration of Titles on such a footing, as to secure for 
 the Society the certainty that the mortgage given by 
 the borrower, is in reality a {haillcur fic foncU) ff^t 
 
 class mortgage. 
 ■1* 
 
44 
 
 In the Lower section of the Province, but little 
 legislation would be required to perft'ct tiie system. 
 As the proposition to establish a Bank of Credit 
 Foneier has b(!en made exclusively fur this section of 
 the Province, we need not allude to the mortgage 
 systeuj novv' in operation in the VVestcirn Section. VVc 
 shall quote from a French political economist of some 
 note, to show the opinion in France in 1852. 
 
 Mr. Chegaray in his Report to the Legislative 
 Assembly, thus expresses himself: 
 
 " In July, 1839, our honorable colleague, Mr. 
 Wolowski, submitted to the " Academy of Moral and 
 Political sciences " (I' Academic der. Sciences Morales 
 et Politiques) an able dissertation, in which he gives 
 to the public for the first time, a history of the working 
 of the Credit Foncier Institutions which have been 
 established in Germany since the eighteenth century. 
 He })roposed the introduction of a similar system into 
 France, with the proviso, that there should be Legis- 
 lative Reform in the mortgage system (Reforme de la 
 Leghlaiion hi/pothecaire). M. Rossi, who was in- 
 structed by the Academy to analyze this dissertation, 
 gave to this apparent innovation, the benefit of all 
 the penetrating, pains-taking, and practical attention 
 for which he was justly celebrated." 
 
 Josseau thus writes on the subject of the privi- 
 leges granted to " La Banque de Credit Foncier de 
 France " : — 
 
 In the first place, the privilege of Sequestratica 
 {sGf/i'estre), which docs not aflect the revenue of the 
 
 
t 
 
 )f 
 
 te 
 [c 
 
 c 
 
 -^ 45 5=^ 
 
 property, excejDt in so far as it is necessary to prolect 
 the interests of the Bank, until the debt is licjuidaled. 
 
 Secondly. — Special procedure in expropriation Qn'o- 
 cedure speciale d^ expropriation.) 
 
 The cost of this proceeding has been greatly re- 
 duced (and this is advantageous to the borrower), but 
 the delays and formalities, although shortened, otler 
 to the proprietor sutficient safeguards, and th'' neces- 
 sary time to procure money, if he has not, in reality, 
 lost all credit ; and perhaps, if reduced to such a posi- 
 tion, it were better that he should be liberated by the 
 property passing into other hands. Besides, in fact the 
 existence of these privileges is merely nominal. i3y 
 the Statutes which incorporate the "Credit Foncier," 
 it is provided that the Bank shall only lend on the lirst 
 half or the first third of the immoveable :<ecurilv, on 
 ihc condhion that the said immoveable j)roduces a 
 revenue at least equal to the amount of the annuity. 
 By the care taken to ascertain what the actual posi- 
 tion of the borrower is, at the time he wishes to 
 contract a loan, the Bank finds it-^elf but seldom 
 compelled to resort to extreme measures. Moreover, 
 as I predicted in 1852, the fact of the [josse^sion of 
 these privileges has produced with us, as in Germany, 
 the excellent elfc^ct of creating greater punctuality on 
 the part of persons who borrow on n ortgage ; and at 
 the present moment should it not h". a subject of con- 
 ijratulation, that the Directors of the "Credit Foneier 
 de France," after lending more than 180 millions of 
 francs, in eiulit years, c:ui confi'lc^ntly assort lh:it ';l:ey 
 
 (I ; 
 
 i<a»w«aBWpry.i|iii)iqf|<|lj|tif)l)|ijiiijii'a/»iii^ 
 
-$ 46 
 
 iiavo scarcely in one solitary case, been under iho 
 iieee.ssily of putting into eflect the privilege of 
 •' special procedure in expropriation?" 
 
 The l)on(l8 of the Society give the same guarantee 
 ^)y inorigage as the contract of loan {conlrat de pret), 
 but they do not contain any special mortgage on any 
 parlicnlar jiroperty. These bonds are guaranteed by 
 the whole of the properties mortgaged to the " Credit 
 Foncier ''' in solido. They are, in fact, a substitution 
 of a collective pledge for an individual guarantee. 
 
 Tliere can be no sounder security than a first mort- 
 gage, the priority of which is assured by the special 
 privilege of (/« purge) clearing off of mortgages. The 
 privilege of sequestration (sequestre)^ and the rights 
 over the revenue are thus described in the French 
 decree : 
 
 Art. 29. In the case of the debtor being in arrears, 
 ihe Credit Foncier Society can, in virtue of an ordi- 
 nance issued by the President of the Civil Tribunal 
 to whom it shall have applied for such privilege, 
 fifteen days ufter due notice, take possession of the 
 immoveable mortgaged to the Society, all proceedings 
 being at the cost and risk of the debtor thus in arrears. 
 
 Art. 30. During the duration of the sequestration, 
 the society collects (all oppositions and seizures being 
 disregarded) the amount of the revenue of the pro- 
 perty, and applies the same to the liquidation of the 
 arrears of annuity, and the costs incurred in the pro- 
 
 
 5 
 
 ceedinss. 
 
 This privilege, however, ranks only after tlu; claims 
 
47 
 
 i=^ 
 
 
 of those who have laboured or expended money in 
 preserving the produce of the property, in ploughing 
 and sowing, and all work of this description. 
 
 Right of expropriation can be exercised in each 
 and every instance of neglect on the part of the debtor 
 to fulfil his engagements. This rule is laid down in 
 the 32nd article of the same decree. 
 
 " In the case of non-payment of an annuity, or in 
 the event of a deterioration in the value of the im- 
 moveable mortgaged, or in any other case provided 
 for by the Statutes, through which the whole capital 
 might be claimed, the Credit Foncier shall have the 
 power of proceeding to the sale of that immoveable. 
 
 If there should be a contestation, it can be heard 
 on the merits, and decided in a summary manner by 
 the local tribunal. 
 
 From such a judgment there shall b(^ no appeal. 
 
 When the debtor is in arrears to the Credit Foncier 
 Institution, the latter has three modes at its disposal 
 to obtain payment. 
 
 1st. To enter a personal action against the debtor 
 for the amount due, or indirectly, by means of '' saisie- 
 arrety^^ to attach any funds in the hands of his debtors. 
 
 2nd. To place the immoveables mortgaged in 
 sequestration (en scquestre.) 
 
 3rd. To have them sold oy expropriation. 
 
 The choice of selecting any one of the three above 
 modes of proceeding is left to the Society. There is 
 neither limit nor condition assigned. With regard to 
 llie " action to expropriate," {pow'sidte cPcxpropria- 
 
 almmmmiv 
 
 mmmm 
 
Hon) Article 33 of the clecrco partionlfxrly specifies 
 two cases in which that action can obtain. 
 These two cases are : 
 1st. Non-payment of the annuity. 
 2ncl. The exigibility of the debt which may be 
 necessitated by deterioration in the value of the im- 
 moveable, or from any other cause j)ointed out in the 
 Statutes. 
 
 When the debtor is in arrears, it may be possible 
 that a personal action (action personnel/ e) or even 
 sequestration, would fail to attain the desired object. 
 The only resource left to the Society, to ensure the 
 payment of arrears, is to realize upon the immove- 
 able which has been mortgaged to it as security. 
 
 In the Statutes wiiich regulate the affairs of " Le 
 Credit Foncier de France," we find the following 
 provisions : 
 
 Art. 71. If the borrower fr ils in the payment of one 
 term of annuity, the " Credit Foncier " have a right 
 to claim the payment of the capital, one month after 
 a regular notice demanding a settlement. 
 
 Art. 76. The borrower is bound within one month, 
 to inform the Bank of: — 
 
 1st. Any dfiterioration in the value of his property. 
 
 2nd. Any sales he may have made to third parties. 
 
 3rd. Everything relating to his right of possessing 
 
 the prop'.'rly, which may affect the privileges of the 
 
 Bank. 
 
 If the facts are of such a nature as to compromise 
 the interests of the Bank, that institution mav, accord- 
 
 # 
 

 -<=^ 49 ;>- 
 
 ing to Article 32, of the decree of 28th February, 1852, 
 demand the payment of the capital. 
 
 Art. 77.— Tlie amount of the capital would be 
 equally exigible in case of any misrepresentation or 
 dissimulation on the part of the borrower with regard 
 to any other mortgages for which his property may 
 be liable. 
 
 Art. 80.— The same would be the result in a case 
 of damages to the property, with the reserve, that the 
 owner can repair these damages within one year. 
 
 Should any dispute arise between the bank and the 
 borrower, with regard to any of the points above 
 explained, they shall be decided before the Civil 
 Tribunal in the jurisdiction of which the properties 
 mortgaged are situated. The case is there disposed 
 of in a summary manner, and the judgment cannot 
 be appealed from. This proviso is intended to save 
 the Credit Foncicr Bank (which is compelled to pay 
 the interest on its bonds regularly) from the slow and 
 unsatisfactory proceedings which the debtor might 
 enter upon, with a view of gaining time and prevent- 
 ing expropriation. 
 
 In the annual report of " Le Credit Foncier de 
 France " submitted to a meeting of the Shareholders, 
 29th April, 1862, we find the following allusion tr 
 the mortgage system in France :— " Without departing 
 from the rules of strict prudence, we have reduced 
 the formalities and the verification of titles to a system 
 which alone can secure a proper administration of 
 our affairs, in the present uncertain condition of our 
 
50 C: 
 
 legislation respecling mov\gi\gcs—{leffislalion hypo- 
 thecairvy^ — With souk; precautions and some slight 
 improvements, the mortgage system of Lower Canada 
 could be brought nv.ar to perfection. Tiie experience 
 of the French in their management of Credit Foncicr 
 Institutions clearly j)roves that the French law of pro- 
 perty, to which ours bears a strong resemblance, can 
 be made to effect the desired object, viz : " To enable 
 the Credit Foncier Institution to discover easily, 
 promptly and economically, the existence of mort- 
 gages which would take rank before that granted by 
 the borrower to tlie Society." 
 
 \ 
 
 -<Jo*C>r>5r: 
 
 I 
 
CIIAVTKIi 
 
 *■ 
 
 ■■'^■r>- 
 
 Gencral llevicw ol'lhe System ns it has been worked in J'^iirope, 
 
 I 
 
 
 We have already stated tliat the first Credit Foncier 
 Institution was organized in Silesia, a })rovinee form- 
 ing the south-east portion of Prussia, after the snvcn 
 years' war, when the inhabitants were so deeply in 
 debt that they eould not meet their pecuniary engage- 
 ments. Frederic the Great received with favor and 
 sanctioned a plan (offered by a merchant named 
 Kaufmann Buhring) which recommended the forma- 
 tion of a Society based ujion the principle of " terri- 
 torial credit." He ofl'ered to aecom))lish this by a 
 compact of all the Sllesian Proprietors of the soil. 
 When this Society was formed, capitalists instantly 
 ceased to be anxious with regard to the position of 
 any individual. They loan(,'d their money to the 
 Society, which promised to pay the interest regularly, 
 and to reimburse the capital during a certain number 
 of years. 
 
 The uncertainty attached to individual credit im- 
 mediately disappeared, and unlimited credit re[>laced 
 it. 
 
-^ 52 f>- 
 
 Thns was ()rii,nnated tliu Inslitulion of Icttrcs de 
 i^a^c, pfitndbrirfe. 
 
 It liiis iK'cn successfully worked und pcrlcctcd 
 since that lime. 
 
 Other Societies were founded in Europe in 1777, 
 1781, 1782, 1787, 1788, 1791, 1803, 1811, 1818, 1822, 
 1825, 182G, 1827, i832, 1811, 1842, 1814 and 1852, 
 
 fre(|uently at times when the peo|)li" were exhausted 
 by wars and misfortunes. 
 
 In a former Chapter we have named some of the 
 leading Credit Foncier Institutions of Europe, and 
 we shall now proceed to add the following to that 
 list : 
 
 1st. The Mortgage Bank of IJavaria, which carries 
 on the joint business of lending on mortgage, discount 
 and insurance. 
 
 2nd. The Rent Establishment {Rcntcn Anstall)^ of 
 Hesse Darmstadt, which lends on mortgage. 
 3rd. The Credit Bank of the Duchy of Nassau. 
 4th. The District Bank of VVurtemberg. 
 
 5th. The Mortgage Banks of Berne and Balc- 
 Campagnc. 
 
 6th. The Proprietors I3ank and Mortgage Bank of 
 
 B 
 
 clirumi. 
 
 The Institutions formed and directed by the Slate 
 
 are 
 
 1st. Hcsse-Cassel Bank. The Territorial Credit 
 Bank of Ilesse-Cassel (Landes Credit Casse) was 
 established principally to assist in the {)ayment of 
 
 i 
 

 -<5 53 >- 
 
 tithes, ronts niul other feudal liabilities ; it also lends 
 on mortgage to small proprietors. 
 
 2nd. The Territorial Credit ln>titi:lion of Hanover. 
 
 3rd. SevcrailJanks of Wi^slphalia, establisli(>d with 
 a view of relieving property from mortgage, demands 
 or debts. 
 
 4lli. A Hank eslablislied in the Uuehy of Baden, 
 with the same objeet. 
 
 5th. The Credit Bank of Denmark, established in 
 1787. 
 
 6lh. The Loan Bank of the Empire of Russia. 
 
 7th. In Belgium, a projeel beeame law in 1850, to 
 establish a Credit Foneier liank. The Chambers 
 decided upon the; establishment of the Bank as a 
 central monopolizing power, but managed by the 
 State. All the details of the working of this Institu- 
 tion are placed in the hands of a distinct manage- 
 ment, but subject to the directions of the Slate itself. 
 
 The most modern Institution of any note in Europe, 
 and certainly the most important, is " Le Credit 
 Foneier de France." It is still in its infancy, but 
 already possesses a history. This history, remarks 
 Mons. Josseau, (in his latest work of 18G0) may be 
 subdivided into three distinct epochs : 
 
 1st. The decree of 28th March, 1852. 
 
 2nd. The decree of 10th December, 1852. 
 
 3rd. The decree of 6lh July, 1854. 
 
 The first was the decree authorizing its organiza- 
 tion. 
 
 The second gave it the title of " Credit Foneier de 
 
^ 51 c- 
 
 Fmnci*," cxtcndod its piivilfgos to all the Provinces 
 outside of tin; limits of Ni-vor.s and Miirseilles, gave it 
 tli(! |)(t\V(-'r of amalgamating with thcso Soeh.'ties, 
 aulliorizod the incn-ase of its capital to GO luillions 
 francs, and granted to it a State subsidy of tun mil- 
 lions of francs payable as required, for the replace- 
 ment of loans made on mortgage. 
 
 The third decree* of 1851, Mons. Josscau looks upon 
 as a j)eriod of revival in the afl'airs of " Le Credit 
 Fonder de France," It gave to the Institution an 
 organization similar to that of th<> liimk of France. 
 The Emperor appointed the Governor and two Deputy 
 Governors of the Institution, whose duty was to repre- 
 sent the State in that supervision, of which we have 
 already treated. 
 
 Some idea may be formed of the wonderful pro- 
 gress of this Institution, l)y the following figures made 
 up in 1860. 
 
 " In 1855, the Bank only loaned 12.J millions franc??^ 
 in money. In 1856, only 8.^ millions. During the 
 first half of 1857, the amount had gone down to two 
 millions. In the second half year, the amount of 
 loans was raised to six millions, all in bonds of the 
 Society instead of money, and in 1858, the amount of 
 loans cftected in bonds, reached the enormous figure 
 
 of 30 millions ! 
 
 The general transactions of the Bank during those- 
 
 years increased as follows : — 
 
 1857 francs 73,254,953 
 
 1858 " 241,853,504 
 
 1859 " l,200,000,00a 
 
 
 1> 
 C 
 
 r 
 
 V 
 
 \ 
 
 

 
 TliL- latest Report of " Le Credit Foneierdt; Frniico," 
 pul)lislie(l in Ajjrii, 1802, is well worthy of serious 
 consideration. Tlie amount of annuities on loans 
 made by the IJank, duo at the end of the year 1801, 
 was : 
 
 Francs. c. 
 11,331,510 02 
 Tlu! Bank had collected on the 31st 
 December, the date at which this 
 amount was due 10,853,850 02 
 
 Leaving a balance still due of. . nTjCOO 00 
 
 This balance was, by snbsctiucnt payments, in a 
 few weeks, reduced to the small sum of U7,130f. OGc., 
 or about one per cent, on the total amount of annui- 
 ties which had fallen due in the course of that year. 
 
 In another branch of tlu; operations of the Hank 
 called in France; " Prels Communanx," " loans to 
 Municipalities on the security of the Commons, or 
 pasture grounds " ; we lind a result e(|ually if not 
 more satisfactory. 
 
 The Hank had to collect in annuiti(\s from this 
 source during the year 18G1, G52,015f. -iSc. This 
 sum had been paid up, in full, on the 31st Decem- 
 ber, 1860. The amount of annuity due for the halt- 
 year expiring on the 31st January, 18G2, reached 
 l,033,356f. 23c. At lh(> date of Report (29th April, 
 1802), this amount was also paid up in full. 
 
 Such results should naturally induce us to believe 
 
 wrwiitw»H^iaii • i tt n ffi-'--' f* f 
 
^:=5i 56 $: 
 
 that the system, as in operation in France, must be 
 based upon sound principles, and must be conducted 
 in an able manner. 
 
 The success of all the Institutions of this kind which 
 are in full operation throughout Europe, from which 
 "La Banque de Credit Foncier de France " borrowed 
 its model, is clearly proved by the most reliable 
 authors. Mons. Royer's voluminous Report to the 
 French Government, after a visit paid to all the coun- 
 tries of Europe in which the system was in operation, 
 leaves no doubt upon this subject. 
 
 — cj^ef>5=— 
 
 ■\ 
 
1 
 
 CHAPTER 9. 
 
 "Is the scheme practicable in Lower Canada, should it l)e applied, and on 
 
 what principle?" 
 
 CONCLUSION. 
 
 We feel ihat it would be imprudent to approach 
 this important branch of our subject without extreme 
 caution. So much has been written through the press, 
 in favor and against Credit Foncier Institutions, that 
 we are compelled, in deference to the contradictory 
 opinions which have been expressed on both sides, to 
 refrain from offering any very positive opinion with 
 regard to the principle upon which it should be intro- 
 duced into Canada. The opinions of the leading 
 political economists of Europe, which we have quoted 
 in former chapters, and the details of the working of 
 the Landed Credit System in France, as late as 1862, 
 abundantly prove that the; Institution of Credit Fon- 
 cier might be advantageously put into operation in 
 this Province. It is very evident that the Provincial 
 guarantee asked for by the St. Ijyacinthe Committee, 
 has been the main cause of the opposition which has 
 been manifested, and the objections which have been 
 raised to its introduction into Canada. Twenty mil- 
 
 msmh u um-i m -ivm 
 
lions ol" dollars is no trilling sum to add to the Pro- 
 vincial liability, and a demand for an equivalent of 
 twenty millions for some purpose, in the Upper Sec- 
 tion of the Province, would inevitably be made the 
 principal condition of a grant to the Lower section. 
 
 Although we do not share the fears expressed by 
 the opponents of the scheme with regard to the risk 
 which would be incurred by the Province, in giving 
 such a guarantee, still, we fancy that the St. Hya- 
 cinthe Convention have aimed too high al the outset 
 of the enterprise. 
 
 It might, perhaps, have been more in accordance 
 with the rules of political economy, to have commenced 
 with a smaller demand. There is a wide-spread feel- 
 ing of alarr.a throughout the country at the prospect 
 of the guarentee of twenty millions of dollars, and in 
 the present state of the Provincial finances, it might 
 be prudent to moderate the demand. Above all, the 
 movement, whatever phase it may assume, should be 
 joined in by all political men, regardless of the lines 
 which divide political parties. 
 
 It should be viewed as a question purely of political 
 economy ; it should be treated on its merits, without 
 prejudice and with neither fear nor favor. Members 
 of Parliament will, we are convinced, give the sub- 
 ject an impartial and unbiassed consideration. By 
 such !i proceeding they will aid in throwing new light 
 upon the working of the system of Landed Credit, 
 and they will not fail to discover whether it be appli- 
 
 \ 
 
-^ 59 *> 
 
 cable to the position of Lower Canada, and how it 
 should be applied. 
 
 The question of introducing a system of Landed 
 Credit into Canada, was first seriously broached in 
 1852. A. E. Kierkzowski, Esq., of St. Charles, then 
 one of the Directors cf the Lower Canada Agricul- 
 tural Society, now member for the County of Ver- 
 cheres, published a pamphlet with the title " The 
 Question of the Seigniorial Tenure of Lower Canada, 
 reduced to a question of Landed Credit." 
 
 In the preface of this interesting " brochure " we 
 find the following opinion : 
 
 " The cause of agricultural progress is impeded by 
 " an obstacle which, so long as it is not removed, 
 " will render the efforts of Agricultural Societies, for 
 " the most part, fruitless. 
 
 " The absence of capital, of which farmers might 
 " dispose, is the obstacle to which I allude. The rota- 
 " tion of crops, the use of manure, drainage, arti- 
 " ficial meadows, &c., &c., although undoubtedly 
 " great improvements and excellent things in them- 
 " selves, will always be for the majority of Canadian 
 " farmers theories of a difficult application so long 
 " as the pecuniary means are wanting for the outlay 
 " which such improvements render necessary." 
 
 The plan of the writer at that time was to abolish 
 the Seigniorial Tenure through the establishment of a 
 Landed Credit Institution, and he expressed his firm 
 opinion that, " Agriculture would receive vigorous 
 ** impulses from the establishment of such Institutions 
 
 s« 
 
.* 60 «>=- 
 
 " which the Seigniorial Tenure question is alone 
 " suificlently powerful to create in this country." 
 
 Mr. Kierzkowski's proposition was to form a com- 
 pact society composed of the censitaires, and to con- 
 vert the debt due to the Seigneurs into an amount 
 borrowed from the Landed Credit Society, payable 
 through a Sinking Fund, at long date. He further 
 remarks that, "the plan of which we give the principal 
 features, is the faithful application of the principles 
 followed in several parts of Germany and in Poland, 
 modified and ameliorated to suit the political and 
 social constitution of Canada, and we are satisfied 
 that such a system would be in many respects more 
 adrantageous to Canada, that it has been to the above 
 mentioned countries." Further on he says : — " The 
 system has been recently introduced into Belgium and 
 France, and it will depend entirely on the manner in 
 which it will be received in Caiiada, to give life and 
 motion to public or private credit, or prove its death 
 blow," And : — " The Institution of Landed Credit 
 established at first with view of the commutation of 
 the Seigniorial dues, might at the same time serve to 
 provide Farmers in Lower Canada with the capital 
 which is necessary to them in order to improve the 
 present condition of their lands which are exhausted 
 by a long and improvident cultivation." 
 
 If these words were true in 1852, they are of equal 
 importance in 1863. The lands of Lower Canada 
 are certainly not improving. The v.'ant of available 
 capital is sadly felt throughout the country villages, 
 
 4 
 
-*61 *^ 
 
 4 
 
 and a Landed Credit Institution would be hailed with 
 satisfaction by the whole rural population. Its esta- 
 blishment, though on a small scale at the outset, 
 would sound the death-knell of usury and extortion. 
 
 The establishment of a Bank, with a Capital sub- 
 cribed by Shareholders to the amount of even !^400,000, 
 would be a favourable commencement of operations. 
 We apprehend that no objection would be then 
 offered to the Government guarantee for a similar 
 amount. As the Society would conduct its operations 
 with the strictest precaution, it is highly probable that 
 no dangerous loans would be made. The limited 
 capital at the disposal of the Bank would naturally lead 
 to limited and safe operations which would increase 
 from time to time, as circumstances might justify. 
 
 The discussion in Parliament will more am^Ay 
 develope the details of the introduction of the system 
 into Canada. That it is practicable and highly desir- 
 able, no one, we venture to assert, will for one moment 
 question. 
 
 We therefore trust t' it the establishment of a Banque 
 de Credit Foncier will receive that attention which its 
 importance deserves. 
 
 In conclusion, we have to ask the indulgence of the 
 reader for the many imperfections which this little 
 work contains. 
 
 If it can serve, however, to impart some useful 
 information on the subject of Landed Credit, its 
 object will have been amply attained. 
 
-<* 63 *»- 
 TABLES OF THE SIXKIXG FIND OF " LE CREDIT FOXCIER BE FK.WCE." 
 
 Table 1.— Repayment of a Capital of $100 on loans for 20 to 50 years. 
 Interest at 4^ per centum per annuni. 
 
 Duration 
 
 of 
 
 Loan. 
 
 Years. 
 20 
 21 
 22 
 23 
 24 
 25 
 26 
 27 
 28 
 2!) 
 80 
 
 31 
 32 
 33 
 34 
 85 
 3rt 
 37 
 38 
 3 it 
 40 
 
 41 
 42 
 43 
 44 
 45 
 40 
 47 
 48 
 4!t 
 50 
 
 Annual 
 
 Sinking 
 
 Fund. 
 
 $ c m. 
 
 3.22, 2374 
 
 9. 91), 0114 
 
 2.7!», 1076 
 
 2 00, 0200 
 
 2.43, 7322 
 
 2 28, 3028 
 
 2 14, 1028 
 
 2 01, 1082 
 
 1.8<», 1950 
 
 1.78, 1382 
 
 1.07, 9030 
 
 1 58, 
 1.49, 
 1.41, 
 1 33, 
 1 20, 
 1.19, 
 1 13, 
 1.07, 
 1 . 02, 
 0.97, 
 
 4116 
 5916 
 3816 
 7270 
 5796 
 8900 
 0382 
 7716 
 2052 
 0910 
 
 0.92, 2254 
 87, 0440 
 83, 3270 
 7!t, 2554 
 75, 4124 
 71, 7820 
 0.08, 3504 
 0.1, 1(»-U 
 0,<>2, ().i2n 
 59, ]22(» 
 
 Total 
 
 Amount of 
 
 Annuity. 
 
 $ c. 
 8.07, 
 7.84, 
 7 64, 
 7 45, 
 7 28, 
 7 13, 
 0.99, 
 80, 
 6 74, 
 6 03, 
 6 52. 
 
 m. 
 
 2374 
 6114 
 1676 
 6206 
 7322 
 3028 
 1628 
 1682 
 1956 
 1382 
 9036 
 
 6.43, 4116 
 6 34, 5910 
 6 26, 3816 
 6.18, 7270 
 6.11, 5796 
 6.04, 8960 
 5 98, 6382 
 
 5 92, 7716 
 5.87, 2652 
 
 6 82, 0916 
 
 5.77, 
 5 72, 
 5 . OS, 
 5 . 64, 
 5 . 00, 
 5.50, 
 5 53, 
 5 50, 
 5 47, 
 5 44, 
 
 2254 
 0440 
 3270 
 2554 
 4124 
 7820 
 3504 
 1044 
 0820 
 1 220 
 
 Half yearly instaimunts. 
 
 Number. 
 
 40 
 42 
 44 
 46 
 48 
 50 
 52 
 54 
 50 
 58 
 60 
 
 62 
 64 
 60 
 
 68 
 70 
 72 
 74 
 70 
 78 
 80 
 
 Amount. 
 
 c. 
 03, 
 92, 
 82, 
 72, 
 04, 
 50, 
 49, 
 43, 
 37, 
 31, 
 20, 
 
 m. 
 
 0187 
 3057 
 0838 
 8103 
 3601 
 0514 
 5814 
 0841 
 0!»78 
 5091 
 4518 
 
 3 
 
 21, 
 
 7058 
 
 3 
 
 IT, 
 
 2958 
 
 3 
 
 13, 
 
 1!1(I8 
 
 3 
 
 09, 
 
 3635 
 
 3 
 
 05, 
 
 7898 
 
 O 
 ** 
 
 02, 
 
 4480 
 
 2 
 
 99, 
 
 311H 
 
 2 
 
 90, 
 
 3858 
 
 2 
 
 93, 
 
 0326 
 
 2 
 
 91, 
 
 0458 
 
 82 
 
 2 
 
 88, 
 
 6127 
 
 84 
 
 2 
 
 86, 
 
 3220 
 
 86 
 
 2 
 
 84, 
 
 1 635 
 
 88 
 
 2 
 
 82, 
 
 12, "7 
 
 90 
 
 
 80, 
 
 2ur)2 
 
 92 
 
 2 
 
 78, 
 
 3910 
 
 94 
 
 2 
 
 76, 
 
 6752 
 
 itO 
 
 2 
 
 75. 
 
 0522 
 
 98 
 
 2. 
 
 73, 
 
 5160 
 
 OD I 
 
 2 
 
 72, 
 
 0610 
 
 Interest at 3.70 per cent. 
 
 Imration 
 
 of 
 
 Loan. 
 
 50 veara. 
 
 Annual 
 
 Sirtking 
 
 Fund. 
 
 $ c, m. 
 70, 4332 
 
 4i. 
 
 Total Half yearly instainit-nis. 
 
 Amount of \ ,- 
 
 Annuity. 
 
 $ c. m 
 
 5 00. 0000 : 
 
 Number, Amount. 
 
 100 
 
 % c. m. 
 
 2 50, 0000 
 
-a^ 64 *» 
 
 .s 
 
 s 
 
 I 
 
 J2 S, >> - 5 
 
 ■g ~ CO c o. 
 H-2 rt 
 
 . CCi eo -+< <M fM t^ © W -*< <M 
 
 c I- -^ 00 o c-5 CO f;i rr — < T5 
 
 C O I- (M r— 05 -1* ■»♦« CO t- "-I 
 
 -4* C-l CO O «C t- «5 Ci l- C5 
 
 -H fi-\ ci o '-3 lo — — o l- 
 cl o ri — 1 o I- CI "-C I- CI 
 
 O O — O — ■ O iO lO 1.-5 CI 
 
 (M-^iocieoooeioc^ 
 
 1^* QO" -^t^ nT -(T co" cT CO* o" o*" 
 ^ CO I- O CO CO 00 O C^J ■>* o 
 
 t-^ ji" t--r r-T o" -t" •&cct-^ o" 
 
 lO i.O iO >.-5 •* C-J O l.» >+• rH 
 
 <j^ (M rt rt O O CO OO t- O lO 
 
 "t 0? «M — O Ci CO -o o -+t 
 C5C-. dOClOOCOX'COCO 
 
 r-* f— i I— ( »-H 
 
 
 »COff1t-00Ci00b-«(M'— 
 
 rjt— a)50-+'eo'-<-*'coci(M 
 
 Socoooocoei'-iocjoo 
 
 i?icoeoco(MOt-cot-i-i 
 
 eJ CD*" o" HT (jf o" OO' lo" co' o" Tj' 
 
 U5 O O CO CI CO t- t- -*< CI 
 
 CI irs '^ cr- o ^ CO »t< CO i— 
 
 lf3 O CO CO 1— 1 ■^ CI o -+• o 
 Tf «0 'O O CO Ci 'f i- C5 CS 
 
 »o" ct" cT lie" co" cT "j" cP oo" -ir 
 
 t- t-- O O O O O lO -^ •*! 
 
 «» CI ©1 C» (M (M (M CI <M <M <M 
 
 « C^ Cl CI « 01 CI C^ Ol M 
 
 U rt C3 o 
 
 S .S '•' - 
 
 . CO CO CI »f5 -^ CO CI «0 CI 'H 
 
 I c; CO o o oi o t- -^ CI 1-- 
 
 I »+ CO »+* O iO G<J CI Cl b- CO 
 
 ciC5c:>i-iTf4t-.005OC5t-. 
 
 eJOi:^C»O«+iOC0C0CiCl 
 
 't t- r-l Tjt t- O CI -I*! O t- 
 
 ^«& CJ CO Qo' t- O CO lO ■*' CO CI 
 O O C^ C^ Cv O O^ C^ C^ Ci 
 
 C5 <£> -^ CI -+I 1^ -^ -HH "O O) 
 C". "^ CO >— ( lO O CO rl CO ■^ 
 •^ lO CO ■* O CI CI CS I— I CO 
 t-COCOCOOt-CO'+lr-iCI 
 
 .-H CO t— •>+ t- -t t- i-O CO o 
 00 00 00 CO t- CO ■^ CI C5 CO 
 
 i~(OC2C0t— COlO-^di-H 
 CJC500CO000000CO0OCO 
 
 c 
 
 3 
 
 fa 
 
 c 
 c 
 u 
 
 3 
 
 -a 
 o 
 
 Total amount 
 
 reimbursed the 
 
 borrower. 
 
 ,<Nh-COlOOeiCO-*COC3 
 
 coeoe5-*ocociiooci 
 C»ocoio-+'^'t~t-i>-cico 
 
 t~OOQ0l0C1riC0Od 
 
 tj crcT"t-r'+"io'arco''to'"o"Nr 
 
 O CI 00 O 05 Ci J.- lO ■* CI 
 «>-0 i-H rl CI CO CO •'J^ »0 to t-^ 
 
 ^--+IC0Q0C0C0O50-t<C'1 
 
 ooocO'ti-^eooocoo 
 
 „^ ^ ,„ CO CI t-- 1-- O CO M 
 0-1 i-i i-i CO Ci CI CO O 00 t- 
 
 co" CO*" cT in cf i.o" ci" -tT r-T •+" 
 
 f-i— ir-<r-ioicoot-oeo 
 
 00 c; o ^ 01 CO ■*" ic t-^ 00 
 
 •S 6 
 
 »— '•^ 
 c o 
 
 o . 
 
 " a- 
 
 . CI t- 00 lO CO CI CO -H CO Ci 
 CQOC1COCOOf-'OOC:-<tC1 
 C d CI CJ lO CO -<< 1— 1 C5 d -^ 
 
 oooco«ooii£3coeooo 
 
 r-l-»HCOCOCOCO'OCO-*Cl 
 
 00 1-1 o O -^ CI CI CI CO o 
 
 OOOCOCOCOdOr-OCJ 
 O CO O CO r-l CO CO CO O CI 
 
 Interest 
 due 4J 
 
 tt cT co'm ocTcn •* ci co't-^co 
 
 ««'C'0000 0"00r-<t-i 
 
 !>. CO CO I^CO Ci i^o"co d 
 coo^oocoooT^f-it-ini 
 
 T-i Ol CI d CO CO >* iti O CO 
 
 o o 
 
 3d. 
 
 
 
 .oooooooooo 
 ad'ticooood'ticoooo 
 c ci ci CO CO .-1 CO i.o i^ c; ci 
 
 r-ideO-«tCOt-OOCsOd 
 
 cooooooooo 
 CI »* CO CO o CI -^ o oo o 
 't* o CD o c:> i.o t- c; — >* 
 
 CO M< O t^ CO CI O !-( CO -"^^ 
 
 A C5 CC t-T-o O -l- CO cf CI -T 
 ^ O i-l t~ CO C5 O —^ t- C? CI 
 
 <»OrHrHdCle0-*-^OO 
 
 o'cv X' t- CO lo o -+"00" d" 
 
 CO CI 'JO 'f CO d CO 
 
 CO l— t-' CO X ^' -1 
 
 r— '. I— " r-1 r-t 
 
 •un.i c; s.iT?o^ 
 
 C5 CO t- CO l.-^ rf CO Cl r- 1 O 
 
 ^^Ji *^^ ^7^ Tji ^^^ ^7^ ^N^ ^T^ '"j^ ^j^ 
 
 en CO t— CO i.o »+< 05 ci --J o 
 CO CO CO CO CO CO CO CO CO CO 
 
 •poJ!dxasaT)o\ 
 
 r-l d CO ••* »ri CO t^ 00 C5 o 
 
 — ' d CO -* 10 CO t- 00 C5 o 
 i-lr-11-ir-lr-l.-irlr-lr-ld 
 
 4 
 
 ©1 o\ 
 
 CI c: 
 C5 c; 
 O - 
 t- c 
 
 co'c 
 
 CI '-i. 
 
 O V 
 00 t 
 
 o ■- 
 Ci : 
 d t 
 
 eo't 
 
 CI 
 d 
 
 CO 
 
 Cl 
 
|7^ 
 
 CO 
 
 Ci 
 
 G-l 
 
 CO 
 
 1< CI 
 
 GO 
 
 4 
 
 ♦^ 6; 
 
 lyj o t- T5 eo 
 
 ^^ 
 
 in O b- CI 
 
 b- O 
 
 »-H 
 
 C5 -t* 
 
 -^ 
 
 CI CO 
 
 cl 
 
 •s> 
 
 Cl 
 
 •o -^<^- 
 
 Ift CI "+ 
 
 T 
 
 o 
 
 f— t 
 
 o 
 
 11 
 
 CO 
 
 CO 
 
 c^ 
 
 t-- 
 
 '■S 
 
 -o 
 
 ?o 
 
 i-O 
 
 •— t 
 
 1— * 
 
 t- lO 00 CO 
 
 ■^ 
 
 o 
 
 o 
 
 o 
 
 1- 
 
 -H 
 
 ^, 
 
 
 ^^ 
 
 Cl 
 
 
 1- 
 
 r-< 
 
 1- 
 
 CO 
 
 CO 
 
 1- 
 
 ■-3 
 
 Ci 
 
 CO 
 
 
 t- 
 
 «o 
 
 o 
 
 •— ( 
 
 O CO 
 
 i.O 
 
 -o 
 
 lO 
 
 1-H 
 
 *-H 
 
 I- 
 
 Cl 
 
 •o 
 
 f-H 
 
 o 
 
 t 
 
 •^ 
 
 -t< 
 
 1.0 ' 
 
 to 
 
 '■O 
 
 -f 
 
 o 
 
 O iO CO CO 
 
 o 
 
 rH 
 
 CO CI O) CI r-l 
 
 3v 
 
 CI 
 
 u-o CO 
 
 o 
 
 O 33 
 
 C3 
 
 lO 
 
 33 
 
 o 
 
 '-^ 
 
 -f 
 
 r^ 
 
 N." 
 
 r: 
 
 ^^ 
 
 ^ 
 
 cf 
 
 V5 
 
 cf 
 
 •■ 
 
 ,^ 
 
 CO 
 
 Id 
 
 3-. 
 
 CI 
 
 ■o'r-J" 
 
 o' 
 
 f-H 
 
 cT 
 
 •o' 
 
 x" 
 
 (J- 
 
 rH 
 
 f—t 
 
 .J- 
 
 •t" 
 
 ,.' 
 
 — " 
 
 ._- 
 
 CO 
 
 « 
 
 f— » 
 
 '-C 
 
 o 
 
 CO 
 
 O I- 
 
 CO 
 
 GO I- 
 
 O CI 
 
 Ol 
 
 -t CO Cl r»< 
 
 't' 
 
 'T 
 
 CI 
 
 cr. 
 
 lO 
 
 C3 
 
 rH 
 
 Ol 
 
 r- 
 
 C"- 
 
 -t 
 
 X . 
 
 "M 
 
 _^ 
 
 ri 
 
 X «5 -♦< 
 
 M 
 
 o 
 
 CO 
 
 •n 
 
 •^ 
 
 CI 
 
 iR 
 
 t^ •¥ 
 
 CI 
 
 C5 
 
 o 
 
 CO 
 
 o 
 
 -o 
 
 CO 
 
 S3 
 
 O 
 
 CI 
 
 r 
 
 c? 
 
 — 
 
 •^ 
 
 00 CO t- 
 
 t- 
 
 t- 
 
 t- 
 
 1- 
 
 t- 
 
 o 
 
 o 
 
 » 
 
 •O 
 
 in 
 
 O ITS ifj 
 
 -* 
 
 -+" 
 
 -rt< 
 
 •<t 
 
 CO 
 
 CO 
 
 CI CI CI 
 
 f— ' 
 
 ^^ 
 
 
 
 CO 
 
 ^H 
 
 b- 
 
 »-^ 
 
 o 
 
 •-0 
 
 o 
 
 i.O 
 
 -H 
 
 H< 
 
 o 
 
 o 
 
 Si o t^ 
 
 00 CO 
 
 3i 
 
 to t- 
 
 OD 
 
 C3 CO 
 
 CO o 
 
 
 1- 
 
 lO 
 
 iC 
 
 t— » 
 
 -o 
 
 -<< 
 
 r:. 
 
 »— 4 
 
 T-H 
 
 CI 
 
 CI 
 
 --o 
 
 -H 
 
 -t< 
 
 CO 
 
 r- 
 
 I- I- 
 
 -^ 
 
 O CO 
 
 CI 
 
 -^ 
 
 
 on 
 
 -♦< 
 
 v^ 
 
 -H 
 
 <r 
 
 -f 
 
 
 01 
 
 o 
 
 -^ 
 
 -f< 
 
 CI 
 
 f— i 
 
 00 
 
 CO 
 
 i.O 
 
 CO 
 
 o 
 
 CO 
 
 
 -f 
 
 O l- 
 
 •£> 
 
 C1 
 
 CI 
 
 '•^ 
 
 CI 
 
 CO 
 
 CI 
 
 -f 
 
 o 
 
 O 
 
 
 ^ 
 
 ■^ 
 
 t- 
 
 00 
 
 -t* 
 
 Ci 
 
 CI 
 
 CO 
 
 T— ( 
 
 CO 
 
 CI 
 
 -t< CO 
 
 o 
 
 -f 
 
 O CO CO O 
 
 S3 
 
 rf lO 
 
 CO 
 
 o 
 
 o 
 
 r- 
 
 CI 
 
 X 
 
 ^ 
 
 ir^ 
 
 10 
 
 
 c' 
 
 -J 
 
 
 
 Cl'b^ 
 
 ^ 
 
 o 
 
 0*-+' 
 
 00* 
 
 r 
 
 •HTi-Tci' 
 
 "cf 
 
 co' 
 
 
 .^' 
 
 h- 
 
 r- 
 
 b-^t- 
 
 
 -c' 
 
 cf 
 
 -' 
 
 r-' 
 
 -)•'" 
 
 f 
 
 10 
 
 CO 
 
 CI 
 
 CI 
 
 r^ 
 
 —< 
 
 o 
 
 o 
 
 C5 
 
 00 00 l- 
 
 O O O ■* CO CI 
 
 
 •=> 
 
 C3 
 
 00 I- 
 
 'O 
 
 IS 
 
 -t 
 
 01 
 
 
 <N <? J 
 
 CI (M 
 
 CI CI CI 
 
 CI 
 
 CI 
 
 1—1 
 
 y—t 
 
 rH 
 
 1— ( 
 
 r-l i-H 
 
 rH 
 
 f-H 
 
 r-< 
 
 I-H 
 
 rH 
 
 i-< 
 
 o 
 
 o 
 
 ^ 
 
 o 
 
 o 
 
 O 
 
 -' 
 
 - 
 
 
 03S30XCOCOi.'0»OCOX 
 
 C5CO'-H-fL--XOCOCOrH 
 
 O O 33 — ' ■-0 X -O X ^ r- 
 t- CI T»l CO CO CO O O rH X 
 
 yT cf — " -jT o' 3-r — ' lo' ^ '£ 
 
 C' X CO t^ rH CO -o t- X t- 
 
 rHOC133t--XS3-<<033 
 rnXCOOl-r-OIOCOSs 
 Cl tC O O O 33 -f CO lO X 
 X I- CI S3 CI X CO rH 1-. O 
 
 t-' t-' x" x" 3-r x" t - -tf x' cT 
 
 O rfl rH t— CI O 33 rH rH rH 
 
 ^i^^r(jc3^i-cr - 
 
 -ttXOO-fr-l-COO 
 S3 C3 ~ — lO 1- 1.0 J. /. » 
 
 CO Cl X 1.0 rH to rH X O 
 
 33" -c" -f' -* 0* co" -'■' a' sT 
 
 X 1.0 -f to to l-O -< to --fr 
 
 O X t- >o -t* Cl O X --0 -+< 
 CO t- t- t- t- L- i- to o o 
 
 Cl O X lO CO O t- lO Cl 33 
 
 O to I.O O lO lO '^ -* -t CO 
 
 10 Cl 3: 10 rH t- CI 3. -+ 
 
 CO CO Cl Cl Cl rH rH 
 
 r- — 1 O Cl t- t- i.0> lO t- CI 
 
 O "-2 33 »0 CI r-c -+I »0 to X 
 C3 31 O 33 CO rH CO — X X 
 d t- O « O -O 33 S3 X rH 
 
 S3 O X rH CO Cl -H to -t< rH 
 X Cl to 3j Cl X t- 33 to O 
 t- CO CO 33 "tl O O to -tl rH 
 rH Cl t- O 1-- rH to X Cl CO 
 
 CO 33 to -< S3 cr i~ 
 
 1(0 rH S3 3-. 10 X Cl -O 10 
 
 X X -t Cl -< -. r- 
 
 to l- rH to X CO X rH ~ - 
 
 CO t- X in 33 o X -+ X -H 
 
 t- rH O CI X W CO CI rH CI 
 
 Cl Cl rH rH O — < Cl I.O — « 33 
 
 CO lO X Cl t- CO O X X X 
 
 1.0 10 3. S3 to 3-. — C"— ' 
 rH ■rt< 3. iC CO C-3 -tl X CT 
 
 C3 -^ Cl -t< lO N- 33 -H CO lO 
 rH Cl CI CJ CI Cl CI CO CO CO 
 
 t~ 33 r^ HH «-■ S3 Cl -f t^ O 
 CO CO * rfl -^ -* O O lO to 
 
 ■>+ t- -+ X Cl -o 10 cr> 
 
 CO to t- t- t- X X T. ~. 
 
 Cl 
 
 ^-^ 
 
 ^_^ 
 
 Cl I- 
 
 t^ 1.0 
 
 »"? 
 
 t^ 
 
 Cl 
 
 33 
 
 f— s 
 
 X 
 
 rH 
 
 CO Cl 
 
 rH 
 
 to 
 
 -H 
 
 r~{ 
 
 to 
 
 CO 
 
 ^ 
 
 to 
 
 *— 4 
 
 33 
 
 ^ — 
 
 t- 
 
 — * 
 
 _^ 
 
 X 
 
 ^1 
 
 c? 
 
 r- 
 
 Ol 
 
 
 ^ 
 
 :^' 
 
 X 
 
 X 
 
 to 
 
 00 
 
 rH 
 
 Cl 
 
 to 
 
 CO 
 
 CO 
 
 X 
 
 
 
 CO I- 
 
 CO 
 
 rr 
 
 '-T 
 
 to 
 
 X 
 
 ~ 
 
 1- 
 
 
 
 Cl 
 
 ^~* 
 
 —~ 
 
 to 
 
 C/) 
 
 c^ 
 
 "^ 
 
 
 
 -f 
 
 01 
 
 — i 
 
 Cl 
 
 r-t 
 
 1.0 t- 
 
 r-( 
 
 -t< 
 
 c? 
 
 X 
 
 CO 
 
 
 
 1- 
 
 ~r 
 
 01 
 
 '"7 
 
 "^ 
 
 1—. 
 
 rO 
 
 c^ 
 
 
 
 t- 
 
 r- 
 
 I- 
 
 t^ 
 
 10 
 
 rj^ 
 
 
 
 
 
 CO 
 
 iO 
 
 CO 
 
 CC t- 
 
 33 
 
 rf t- 
 
 rH 
 
 Cl ri< 
 
 ^ 
 
 to 
 
 1-0 
 
 -• 
 
 c » 
 
 :r 
 
 I- 
 
 rH 
 
 01 
 
 03 
 
 33 
 
 
 ^ 
 
 ^ 
 
 
 ^ 
 
 ^ 
 
 
 ^ 
 
 
 
 
 ^ 
 
 
 
 •- •■ 
 
 
 
 
 ^ 
 
 r 
 
 r 
 
 
 
 
 
 
 
 
 ^ 
 
 rr 
 
 t- 
 
 T, 
 
 -0 
 
 1— I 
 
 CO 
 
 'Tl 
 
 C- 
 
 -+> t^ 
 
 ex 
 
 
 
 
 
 
 — . 
 
 Cl 10 
 
 33 
 
 10) 
 
 •^ 
 
 
 Cl 
 
 Cl 
 
 X 
 
 .■"■, 
 
 
 r-l 
 
 CO 
 
 CO 
 
 CO 
 
 CO 
 
 r-l 
 
 
 
 
 
 1— < 
 
 (N 
 
 -^ 
 
 
 
 (^ 
 
 -f 
 
 ex 
 
 
 CO 
 
 r-l 
 
 
 
 
 
 r—* 
 
 CO 
 
 t- 
 
 Cl 
 
 X 
 
 to 
 
 lO 
 
 i."^ 
 
 l- 
 
 — ■ 
 
 1- 
 
 -t 
 
 CO 
 
 -f 
 
 f- 
 
 X 
 
 33 
 
 ■^ 
 
 .— ( 
 
 01 
 
 A-^ 
 
 -H 
 
 -J5 1^ 
 
 -/> 
 
 — , 
 
 Cl 
 
 «H 
 
 — 
 
 X 
 
 — 
 
 01 
 
 .-i. 
 
 t- 
 
 — 
 
 01 
 
 1.0 
 
 X 
 
 _ 
 
 10 
 
 X Cl 
 
 — 
 
 — 
 
 
 
 
 r-^ 
 
 r-1 
 
 T— » 
 
 1— • 
 
 I-H 
 
 f— « 
 
 rH 
 
 ?— < 
 
 Cl 
 
 Cl 
 
 Cl 
 
 01 
 
 01 
 
 ;o 
 
 •'* 
 
 CO 
 
 • * 
 
 CO 
 
 •* 
 
 -* 
 
 -+ 
 
 1.0 
 
 1.0 
 
 10 
 
 to 
 
 '-^ 
 
 l- 
 
 _, 
 
 _ 
 
 ^ 
 
 
 
 ^_^ 
 
 
 
 ,^ 
 
 ,_ 
 
 _ 
 
 
 
 (— ^ 
 
 ^ 
 
 ^^ 
 
 ^^ 
 
 _ 
 
 .'-^ 
 
 ^.^ 
 
 ,.^ 
 
 _^ 
 
 _, 
 
 ^_ 
 
 _ 
 
 ^ 
 
 
 
 . 
 
 ^^ 
 
 _^ 
 
 .*. 
 
 _ 
 
 ^ 
 
 Cl 
 
 -f 
 
 to 
 
 a' 
 
 ^ 
 
 Cl 
 
 *-f4 
 
 to 
 
 •/, 
 
 
 '?! 
 
 -f 
 
 ^ 
 
 '/. 
 
 „^- 
 
 Cl 
 
 -f 
 
 to 
 
 ■vo 
 
 — ; 
 
 Cl 
 
 -^ 
 
 -0 
 
 X 
 
 c 
 
 Cl 
 
 -H 
 
 
 
 X 
 
 ,~. 
 
 to X O Cl 10 I— 33 — CO to X' O 01 -f I- 3 
 
 m to X 3. o r- 01 -t- 10 o 
 
 - 3-. X X (- to 10 -f CO 
 
 C 10 rH 1- CO 3. 1.0 r-, t- 
 
 Cl CI CO -f< -+I 1.0 I.O to t- t^ 
 
 t- 3. O rH Cl 
 
 1.0 X I O 01 -r to 33 — CO 
 
 O to I- X 
 
 Cl -" — O 3. X 1- to 1.0 -* 
 
 CO 33 1.0 r-l to Cl X rt< c; to 
 
 X X 33 O O rH rH Cl Cl CO 
 
 rH rH rl Cl Cl Cl Cl 01 Cl Cl 
 
 C rH Cl CI -+I to L- X 33 rH 
 
 -H CI 01 — - 3. X 1- to to 
 
 01 X -f C to T— t- CO 33 1.0 
 
 -f -H 10 to tr i~ i~ X X 33 
 
 01 Cl Cl Cl 01 Cl Cl Cl Cl Cl 
 
 33 X t- to 10 -♦' CO Cl -H C 
 
 33 X t^ to -f CO Cl r-H 
 
 33 X L- to 1.0 -t CI Cl rH 
 
 
 
 
 ^ Cl CO -f 10 to 1- X 33 
 Cl Cl Cl Cl Cl Cl Cl Cl 01 CO 
 
 rH 01 CO -*l 1.0 to l^ X S3 
 
 CO CO CO CO CO CO CO CO CI t 
 
 -- Cl CI -*< 1.0 -o I- X 3. r 
 
 •*-H-t'1<-t-trr-r-^iO 
 
— c{3 66 «^:— 
 
 TABLES OF SINKING FUND. 
 
 Jin, 9 . 
 
 Anticipatory payment in part, on a loan of 100 dollars, 
 
 With a proportionate reduction of the ujniuity on luantfrom 20 to 50 i/ear.u 
 
 Loans at 4^ per cent, interest. 
 
 c 
 
 3 
 
 Siinitobcpai( 
 
 1 Sum to he 
 
 c 
 
 Sum tobcpaic 
 
 Sum to be 
 
 
 in for capital 
 
 deducted 
 
 o 
 
 in for capital 
 
 deducted 
 
 
 iiul indcinnit; 
 
 f from tlie first 
 
 c/3 
 
 and indcnmit> 
 
 from the first 
 
 g 
 
 3 per cent. 
 
 annuity. 
 
 u 
 ei 
 
 3 per cent. 
 
 annuity. 
 
 ^ 
 
 
 
 >H 
 
 
 
 
 
 $ c. m. 
 
 
 
 $ c. m. 
 
 49 
 
 
 5.47, 0320 
 
 24 
 
 ] 
 
 7.28, 7322 
 
 48 
 
 
 5. CO, 1044 
 
 23 
 
 
 7 45, 6206 
 
 47 
 
 
 5.63, 3504 
 
 22 
 
 • 103 00 • 
 
 7.64, 1676 
 
 46 
 
 
 5.56, 7820 
 
 21 
 
 1 
 
 7.84, 6'14 
 
 45 
 44 
 
 • 103.00 ■ 
 
 5.60, 4124 
 5.04, 2554 
 5 68, 3270 
 
 20 
 
 8.07, 2374 
 
 43 
 
 
 19 
 
 ■ 
 
 8.32, 3912 
 
 42 
 
 
 5 72, 6440 
 
 18 
 
 8.60, 4950 
 
 41 
 
 
 5 77, 2254 
 
 17 
 
 
 8.92, 0708 
 
 40 
 
 
 6 82, 0916 
 
 16 
 
 
 9.27, 7700 
 
 
 •X 
 
 
 15 
 14 
 
 ■ 103.00 • 
 
 9.68, 4200 
 10.15, 0812 
 
 39 
 
 5.87, 2652 
 
 38 
 
 
 5.92, 7716 
 
 13 
 
 
 10.6!t, 1422 
 
 37 
 
 
 5 98, 6382 
 
 12 
 
 
 11.32, 4544 
 
 36 
 
 
 6 04, 8960 
 
 11 
 
 
 12.07, 5420 
 
 35 
 34 
 33 
 
 ■ 103.00 
 
 6 11, 5796 
 6.18, 7270 
 6 26, 3816 
 
 10 
 
 . 
 
 12 97, 9386 
 
 
 9 
 
 1 f 
 
 14.08, 7484 
 
 32 
 
 
 6 34, 5916 
 
 8 
 
 
 15.47, 6280 
 
 31 
 
 
 6.43, 4116 
 
 7 
 
 
 17 26, 6080 
 
 30 
 
 
 6 52, 9036 
 
 
 
 
 19. Co, 7402 
 
 
 ■> f 
 
 
 5 
 4 
 
 ■ 103.00 • 
 
 2G.01, 1174 
 28.04, 9246 
 
 29 
 
 6.63, 1382 
 
 28 
 
 
 6.74, 1956 
 
 3 
 
 
 36 45, 5934 
 
 27 
 
 ■ 103.00 ■ 
 
 6.80, 1682 
 
 2 
 
 
 53.28, 4184 
 
 26 
 
 
 6.99, 1628 
 
 1 
 
 
 103.79, 8672 
 
 25 
 
 J 
 
 7.13, 3028 
 
 
 
 J 
 
 
 
 J 
 
 . 
 
TiBLE OF CONTENTS. 
 
 
 PAom. 
 
 CnAPTEB 1.— The plan of the St. Hyaclnthe ConTcntion. . 1 
 *' 2.— The adviuubility of eBUblitthiog a B. de 
 
 " Credit Foncier" upon a solid basis. ... 6 
 " 3. — The nature of the organisatioa of the Bank . . 13 
 " 4, — The proposed Provincial Guarantee — Terms 
 
 the Guarantee 20 
 
 '• 5. — Government control 28 
 
 " C. — Interest, sinking fund and coat of management, 
 
 their nature, and the conditions of loans. 34 
 " 7. — Privileges to be granted to the Bank — Reform 
 
 of the mortgage system 43 
 
 " 8. — A general review of the working of the eystem 
 
 in Europe 61 
 
 " 9. — Couclusiou. Thepracticability of the scheme 
 as applied to Lower Canada, and the prin- 
 ciple upon which it should bo applied. . . 57 
 
 I 
 
 APPENDIX, 
 
 1.— Table of Sinking Fund 63 
 
 2. — do of Anticipatory payments in full 64 
 
 3.— do do do in part 68