CHEAP MONEY.

West Coast Times, Issue 4872, 23 March 1885, Page 2

CHEAP MONEY.

Chbistchurch, March 21*

; Sir Julius Yogel has forwarded to the newspapers a sketch of a measure for obtaining cheap money in small loans for improving lands. He wished it understood that Government had not decided on introducing tho measure as there might be great opposition, and it remains to be seen if thsre is a strong desire to support it. It proridos that a company authorised by Parliament may ask Government to guarantee its debenture?, with a currency not exceeding 40 years to an amount not exceeding that authorised to be borrowed, and at a rate of interest gnaranteed not to exceed 4£ per cent. The proceeds o£ debentures shall be paid to account of the Government, who shall bs responsible to tho company for the interest up to the date of the money being employed at the rate paid to Government for interest on its balances in London by the G-overnmenfc bankers ; also for the cost of placing money at tho companys command in the colony. Thecompany may lend sums not exceeding £2000 on freehold security, at a rate not exceeding 5f per cent; loans on improved lands, not to exceed two-thirds of the value • loans for projected improvements must not exceed two-thirJa of value of land when improved. Before tho money is paid a first mortgage must be executed in favor of the Public Trustee as joint trustee for Government and the company, with power to the company to collect interest. Loan on being repaid to be available for fresh issue. If Government have to pay any sum of the amount guaranteed, and the company fail to repay it within six months, Government U to appoint directors to supesede existing directors ; the former may wind up the company or carry it on ifab'.o to discharge its liabilities to the Government. The company must have uncallod capital sufficient to cover the amount of debentures guaranteed by Government- If the company borrow on debentures guaranteed by Government, the amount of suoh debentures together with guaranteed smount is not to exceed the uncalled capital. The company may make payment of sinking fund a condition of loans, sneb. sinking fund to be payable to the Public Trustee. The company may lend by way of terminable annuity for projected improvements, money obtained from the guaranteed debentures to holders of crown grants, deferred payment settlers and holders of hnd in spec : al settlement?, amount not to exceed half the value of the projected improvements, nor four-fiftbi of their cost District Land Boards are to take such steps in the case of failure of payment of interest and sinking fund, ai are taken re failure in paying deferred payment instalments. If the Grown resumes possession of the land, it is to remain charge! with the liability;

SIR JULIUS YOGEL AT DUNEDIN; • Dunedin, March 22.

Sir Julius Yogel arrived last night, and expects to remain in Dunedin till Monday week.