CREDIT FONCIER

This article appears in Volume V07, Page 391 of the Encyclopedia Britannica.

Encyclopedia Britannica - Main :: COR-CRE

CREDIT FONCIER , in France, an institution for advancing money on mortgage of real securities. Due to a

great

GREAT

extent to the initiative of the economist L.

Wolowski

WOLOWSKI, LOUIS FRANCOIS MICHEL
RAYMOND
- RAYMOND, HENRY JARVIS (1820-1869)
(1810-1876)

, it was created by virtue of a governmental decree of the 28th of February 1852. This decree empowered the issue of loans at a low rate of

interest

INTEREST

, secured by mortgage bonds, extending over a

long

LONG, GEORGE (1800-1879)
LONG, JOHN DAVIS (1838– )

period, and repayable by annuities, including instalments of

capital

CAPITAL (i.e. capital stock or fund)
CAPITAL (Lat. caput, head)

. On its inception it had a

capital

CAPITAL (i.e. capital stock or fund)
CAPITAL (Lat. caput, head)

of 25,000,000 francs and took the title
of Banque Fonciere de Paris. The parent institution in Paris was followed by similar institutions in Nevers and Marseilles. These two were afterwards amalgamated with the first under the title of Credit Foncier de France. The capital was increased to 6o,000,000 francs, the government giving a subvention of ro,000,000 francs, and exercising

control

CONTROL (Fr. contrdle, older form contre rolle, from Med. Lat. contra-rotulus, a counter roll or copy of a document used to check the original; there is no instance in English of the use of " control " in this, its literal, meaning)

over the bank by directly appointing the

governor

GOVERNOR (from the Fr. gouverneur, from gouverner, O. Fr. governer, Lat. gubernare, to steer a ship, to direct, guide)

and two

deputy

DEPUTY (through the Fr. from a Late Lat. use of deputare, to cut off, allot; putare having the original sense of to trim, prune)

-governors. The administration was vested in a council chosen by the shareholders, but its decisions have no validity without the approval of the

governor

GOVERNOR (from the Fr. gouverneur, from gouverner, O. Fr. governer, Lat. gubernare, to steer a ship, to direct, guide)

. The Credit Foncier has the right to issue bonds, repayable in fifty or sixty years, and bearing a fixed rate of

interest

INTEREST

. A certain number of the bonds carry prizes. The loans must not exceed half the estimated value of the property mortgaged, upon which the bank has the first mortgage. The bank also makes advances to local bodies, departmental and communal, for short or

long

LONG, GEORGE (1800-1879)
LONG, JOHN DAVIS (1838– )

periods, and with or without mortgage. Its capital amounts to 13,500,000. Its charter was renewed in 1881 for a period of ninety-nine years.
In 186o the Credit Foncier lent its support to the foundation of an organization for supplying capital and credit for agricultural and allied

industries

INDUSTRIES

. This Credit Agricole rendered but trifling services to agriculture, however, and soon threw itself into speculation. Between 1873 and 1876 it lent enormous sums to the 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 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 personal or movable estate. It was constituted in 1871, on the liquidation of the Societe Generale de Credit Mobilier, founded in 1852, which it absorbed.

End of Article: CREDIT FONCIER

If you wish, you can link directly to this article.

<a href="http://jcsm.org/StudyCenter/Encyclopedia/COR_CRE/CREDIT_FONCIER.html">
CREDIT FONCIER
</a>

(Previous)
CREDIT (Lat. credere, to believe)

(Next)
CREDIT MOBILIER OF AMERICA

JCSM was founded in 1997 and exists to help the community and bring people into a life-changing and productive relationship with Jesus Christ. JCSM offers over 200,000 free web pages, including its weekly inspirational emails that were sent continuously for over a decade.

Jesus Christ Saves Ministries
P.O. Box 9297
San Diego, CA 92169
1-888-887-0417 or Email