France, an institution for advancing
See also:money on
See also:mortgage of real securities . Due to a
See also:great extent to the initiative of the economist L . Wolowski, it was created by virtue of a governmental decree of the 28th of
See also:February 1852 . This decree empowered the issue of loans at a low
See also:rate of
See also:interest, secured by mortgage bonds, extending over a long
See also:period, and repayable by annuities, including instalments of capital . On its inception it had a capital of 25,000,000 francs and took the title of Banque Fonciere de
See also:Paris . The
See also:parent institution in Paris was followed by similar institutions in
See also:Nevers and
See also:Marseilles . These two were afterwards amalgamated with the first under the title of
See also:Credit Foncier de France . The capital was increased to 6o,000,000 francs, the
See also:government giving a subvention of ro,000,000 francs, and exercising
See also:control over the
See also:bank by directly appointing the
See also:governor and two
See also:governors . The administration was vested in a council chosen by the shareholders, but its decisions have no validity without the approval of the governor . The Credit Foncier has the right to issue bonds, repayable in fifty or sixty years, and bearing a fixed rate of interest . A certain number of the bonds carry prizes . The loans must not exceed
See also:half the estimated value of the
See also:property mortgaged, upon which the bank has the first mortgage .
The bank also makes advances to
See also:local bodies, departmental and communal, for
See also:short or long periods, and with or without mortgage . Its capital amounts to £13,500,000 . Its
See also:charter was renewed in 1881 for a period of ninety-nine years . In 186o the Credit Foncier
See also:lent its support to the foundation of an organization for supplying capital and credit for agricultural and allied
See also:industries . This Credit Agricole rendered but trifling services to
See also:agriculture, however, and soon threw itself into
See also:speculation . Between 1873 and 1876 it lent enormous sums to the
See also:Egyptian government, obtaining the money by opening credit with the Credit Foncier and depositing with it the securities of the Egyptian government . On the failure of the Egyptian government to meet its payments the Credit Agricole went into liquidation, and the Credit Foncier suffered severely in consequence . The impracticability of the credit
See also:system to aid agriculture as worked by the Credit Agricole was very marked, and, as a consequence, the financing of agricultural associations is now entirely in the hands of the Banque de France . The Credit Mobilier is an institution for advancing loans on
See also:personal or movable
See also:estate . It was constituted in 1871, on the liquidation of the Societe Generale de Credit Mobilier, founded in 1852, which it absorbed .
CREDIT (Lat. credere, to believe)
CREDIT MOBILIER OF AMERICA
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