Interest was charged at very high rates for overdue loans of this.
The national government has since assumed responsibility for all these provincial loans abroad.
Besides receiving taxes, they pay the creditors of the state in their departments, conduct all operations affecting departmental loans, buy and sell government stock (rentes) on behalf of individuals, and conduct certain banking operations.
The authorized colonial loans, omitting Algeria and Tunisia, during the period 1884f 904 amounted to 19,200,000, the sums paid for interest and sinking funds on loans varying from 600,000 to 800,000 a year.
These loans are regulated by special disposition, and are guaranteed by a share of the increased value of the land after the improvements have been carried out.