.^z^ IMAGE EVALUATION TEST TARGET (MT-3) // 1.0 1.25 US 116 |2£ 1^ m IIIIM i lis IIIIIM 18 U III 1.6 ^ y] ^^^ -J ^h M. ^J" '> >^. °m M Photographic Sciences Corporation 23 WEST MAIN STREFI WEBSTER, N.Y. MS80 (716) 873-4503 \ ^■s L17 ^^x. l/.^ CIHM/ICMH Microfiche Series. CIHIVI/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques Technical and Bibliographic Notes/Notes techniques et bibliographiques The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked below. 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This item is filmed at the reduction ratio checked below/ Ce document est filma au taux de reduction indiquA ci-dessous 10X 14X 18X 22X 26X 30X y laX 16X aOX 24X 28X 32X Th« copy fiimad h«r« has btmn rcproducsd thanks to tha ganarosity of: Department of Rare Books and Special Collecttons, MoGill University, Montreal. Tha Imagaa appaaring hara ara xhm baat quality poaslbia considaring tha condition and iagibiiity of tha original copy and in kaaping with tha Aiming contract spaeifieationa. Original copiaa in printad papar eovara ara filmad baginning with tha front covar and anding on tha last paga with a printad or illuatratad impraa- sion, or tha back covar whan appropriata. Ail othar original copiaa ara filmad baginning on tha first paga with a printad or iiiuatratad impraa- slon. and anding on tha laat paga with a printad or iiiustratad impraaaion. Tha laat racordad frama on aach mieroficha shall contain tha symbol —^(moaning "CON- TINUED"). or tha symbol ▼ (maaning "END"), whichavar appiiaa. L'axampiaira filmi fut raproduit grica k la giniroaiti da: Department of Rare Books and Special Colleettons, IMoGill Univenity, Montreal. Laa imagaa suivantaa ont 4ti raproduitaa avac la plua grand soin, compta tanu da la condition at da la nattat* da l'axampiaira flim4, at an eonformiti avac laa conditiona du contrat da fllmaga. Laa axamplairaa originaux dont la couvartura an papiar aat imprimte sont fiimis an commandant par la pramiar plat at it tarminant soit par la damlAra paga qui comporta una amprainta d'impraaaian ou dliluatration, soit par la sacond plat, salon la eaa. Tous laa autraa axampiairas originaux sont filmte art comman^nt par la prami4ra paga qui comporta una amprainta dlmpraaaion ou dliluatration at an tarminant par la damlAra paga qui comporta una talia amprainta. 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'&': ?^.- ■i-^ '^S^l^-|l! i , •\> iV, t f J .* ■! i^ • f ■ *.? i' l^«, ,4^K«^;' I , ' / »'^'i!.'"i: ^dM . . ;tv^tg?K"^.4^.,.'i . tA "''■ft '►> '" , » /776- ^ I>K/OSP»EOT U"S or LE CREDIT FONCIER DU BAS CANADA 13, ST LAMBERT HILL (". J. CouRsoL, Esq., Q. C, President. M. C. MuL LARKY, KsQ., Vice-Prcsideut. DIRECTORS. K. H. Trudel, Fjhq. \V. Simpson, Esq. J. FOGARTY', KSQ. G. H. DuMESNUi, KsQ. p. S. MciRPHV, Esq. E. P. Laciiapkllk, Ksq. L. tiAUTHiER, Esq. PRINTED BY M. MAaNlIS & CO. ^iiiH, Notre Dame Stiert. PROSPECTUS OF LE CREDIT FONCIER DU BAS CANADA The object of this Company is to loan and advance on real estate and to Fabriques, Munici- palities and Corporations, sums of money to be repaid at long or short dates. The Company will only lend and advance money on first mortgage on real estate, the value of which shall be at least double the amount of the loan. Such real estate should be of such a class as to to yield a settled and lasting income. The security of the Company shall then be always 200 per cent at least. The Company will upon the same principle open credit accounts secured by mortgage, on which the Company will advance money at short dates. LoariH for a long term will be reimbursed by way of a sinking found calculated so as to repjiy the debt in 6, 10, 15 and 20 years. These loans shall bear 7 per cent interest, and I per cent for costs of management. The annuities will be paid at the office of the Company semi-annually and in advance and the [)ortion applied to the sinking fund shall bear interest at the rate of 4 per cent compounded every six months in favor of the debtor. Out of this difference between the interest charged on the loans and that allowed on the sinking fund, the Company will realize 10 per cent on their capital. In order to raise capital, the Company is jiuthorised to issue and in or out of Canada nego- tiate morgage bonds or debentures even to ten times their capital, provided always that the amount of such debentures shall in no case exceed the amount of loans already made. Thus with ^100.000 paid on the subscribed stock and invested in loans, it shall be lawful to the Company to issue $100,000 debentures to further new loans which in their turn shall allow a new issue and a new investment and so on up to the amount of $1,000,000. So that with $100,000 paid up capital loans could be made to the amount of $1,100,000, whose hypothecary guarantee would amount to $2,200.- 1 ;l 000 affording thus a perfect security both to the bond holders and to the Company. The Company to provide for regular payments of interest to bond and stock holders will cause the payments of their debtors to fall due three months before the date of dividends and interest due to the bond and stock holders. Arrears might thus be paid up in time to mee ' such obli- gations of the Company. The Company is obliged by law tx) withdraw annually from circulation a portion of the mor- gage bonds proportioned to the amount of the sinking fund ptiid in, so that all the bonds which have been issued may be withdrawn from circula- tion at the expiration of the time fixed f»r their becoming due. Thus supposing the Company had loaned $100.- 000 to be repaid gradually in the space of 15 years, $100,000 debentures could then be issued and should be withdrawn from circulation in the same length of time. In the present case the yearly sinking fund being about 5 per cent, the same proportion of debentures would be annually withdrawn and the whole of them would be bought up in the said 15 years. By these means not only the debentures will be withdrawn from circulation in an imperceptible way, but they shall never be allowed to exceed at any time the amount due on the loans. Lejuling BankerH of London have alrejidy pro- inisi'd to negotiate our debentures at a very profitable rate. And we really do iKjt Hee why this institution could not succeed in that as well as the Landed Credit Company of Canada, which does business in the Province of Ontario. Debentures can certainly be negotiated there at the rate of G per cent includings costs of commis- sion and management, then the loans yielding a mean rate of 10 per cent to the Company, there would be 4 per cent profits to realize ; even by taking these profits to be only 3 per cent the amount of debentures being 2, 3, 4, 5. 0, 7, 8, 9 and 10 times the amount of the stock, the profits on these would rise to 6, 8, 12., 15, 18, 21, 24, 27 and 3(1 per cent upon the stock, and the stock itself yielding 10 per cent the whole profits in favor of the shareholders would reach accordingly ir> 19, 22, 25, 28, 31, 34, 37 and 40 per cent. This might seem a little exaggerated, however we have onlv to look at the Credit Foncier de France and see how profitable is that system. Established in 1852, The Credit Foncier de France yielded the first year but 6.25 frs per share of 500 frs.. it yielded 17.50 the four suc- ceeding years and 32.50 frs. later. In 1872 after two years of the most desastrous war, it was yielding 72.50 frs. per share and had even an accumulated reserve fund of 20.000.000 frs. out of . a capital of 120.000.000 frs. And these conside- rable profits arise generally from \ per cent between the rate of their loans and that of their debentures. Taking into consideration the applications for loans that would be filed from the city and the country at large, there is reason to believe that not only the capital but also five times that amount in debentures of the Company could be used and invested in the space ot four oi live years, and would yield a very handsome prolit. There is no doubt that there is not the slihtest risk in lending mcney on property in the condi- tions herein above mentioned when such property in a new country cannot but increase in value in the t-ame ratio as population. The Company is confident under the super- vision of the Minister of Finances and the Direc- tion of its Board, by the security of their investments and punctuality in fulfilling their engagements, by the regularity they will exact from borrowers, that they will secure the custom of the public and increase their business to a high degree. The capital is $1.000. 000- divided into 10.000 shares of $100 each. There remains but $500,000 to be subscribed. • The Board does not intend to call in more than 50 per cent of the capital subscribed, namely : 10 .•T" ■' 8 per cent now, 10 per cent in December next, 10 per cent in 1875, 10 per cent in 1876 and 10 per cent in 1877. Tlie Company proposes itself to pay the other 50 per cent to shareholders by way of Bonus. Dividends will be paid to shareholders semi-^ annually from the Ist day of July last. J. B. LAFLEUR. Cashier, Montreal, 1st August 1874. .t * ?".' ' «4i •J- J: ,*' '^ ^ * W-. , ^, 'i- ait ft- . y -"^ -e • "^ V \ ^tE >1 ■;/ < / ■■■■■*■-?*■ -w . -' i;*j, • '• 4r k f'\ %H'' -sic" ^■5 % - l4 ^ ■■■I A;>^-\,.;r'V-n' ^ .1 -^ .■5-1 T, N . »■ t '<^ ,