High interest rates; money difficult to borrow and then only at a high rental.
"Debenture bond" (which subject see) is the security usually understood by this term. Throughout the Dominion of Canada, however, as well as Great Britain and her colonial possessions in general, the term " debenture " is used in speaking of municipal obligations, such as we refer to as "bonds." Canada being more or less influenced by its dealings with the United States, uses the expression "municipal bond" almost as much as "municipal debenture," although, in speaking on the subject generally, they make a distinction by using the word " debenture " to indicate a municipal issue as against the word "bond" for a corporation security. In Great Britain, the word "debenture " is often used to distinguish "debenture" issues of railroads where there is no "trust deed" securing the same.
See " Income Bonds."
There was a very general custom some years ago on the part of " farm mortgage companies " of issuing what were known as "debentures." The farm mortgage company would deposit, say, $110,000, par value, of mortgages upon real estate, with some trust company, and issue against them $100,000 worth in " debentures " bearing a less rate of interest than the mortgages. There was supposed to be less risk to the investor in buying one of these " debentures " han in purchasing any specific mortgage. This class of securities should be called " debenture mortgages." Comparatively few such investments, however, are being dealt in at present.
One to whom a debt is due; a creditor.
A person who owes another either money or its equivalent. A person running an account at a grocery store becomes its debtor for the amount owed. An insolvent debtor is one who has not sufficient money or property to pay all debts.
See " Clearing-house."
On Jan. 1, 1917, the per capita net debt of the United States was $10.965.
A document in writing (generally a printed form to be filled out in writing is used) rendered authentic by the seal of the party whose intention it is supposed to declare; in practice, a document used for the purpose of transferring the title of real property from one to another. In law a " deed " is any instrument bearing a seal.
" Deeds " conveying real estate are commonly of two kinds. First, a " quit-claim deed," by which the one giving it in no way holds himself responsible for any defects in the title; that is to say, he merely transfers his own rights and interests therein, whatever they may be, and if the title is imperfect the one accepting the deed can recover nothing. Second, a " warranty deed." This differs from the last named by the party giving the deed guaranteeing the property conveyed to be free from any defects of title, and under this the acceptor of the deed is entitled to recover should a defect subsequently be discovered.