THE CHEAP MONEY SCHEME.

Evening Star, Issue 9582, 31 December 1894, Page 3

THE CHEAP MONEY SCHEME.

TO THX EDftoß. SIR.-I shall feel obliged by your prmting the enclosed extract from section 42 of the Government Advances to Settlers Act, 1894 It establishes my position The italics are mine : (6) Irrespective of the prescribed half : yearly instalments, the mortgagor may from time to time i»y to the superintendent any sum not less than £5, or a multiple of £5, in reduction of the ""(©All such last-mentioned payments shall be credited with interest at the rate of £i per centum per annum, with yearly rests until such payments, together with the accumulations of interest thereon, are equal td the balance of principal owing for the time being according to the aforesaid table, together with all other moneys (if any other) owing under the mortgage, when they shall be set off against such principal and other moneys, and the mortgagor thall be entitled to a discharge of the mortgage on payment of the preteribedfeet. -I am, etc., . Dunedin, December 31. The London correspondent of the ' Press' writes thus concerning the Midland Railway difficulty:—" Consequent upon the receipt of the news that the Honse of Representatives had thrown oat the Midland Railway Bill the debentures of that company have dropped heavily in the London market, and stand at the moment of writing at about 56. At present nobody seems to know what course will be taken by the company. All the directors and officers in London are studiously reticent on the subject. I believe, however, that the chairman (M* Salt) will shortly go out to New Zealand in the hope of effecting some feasible arrangement Failing some concession on the part of the colony in the direction of modification of the original contract terms, I fear that costly and protracted litigation is inevitable. The directors in London say plainly that the colony in the first; instance departed from the terms of the contract and broke faith with the company, and rendered it impossible for the company to carry out the contract on the original basis. I am afraid there ia going to be much more trouble and waste of money over this unlucky affair unless some reasonable compromise can be arrived at The feeling in the city is unmistakeably adverse to the colony in this matter, as it is considered that the company have been badly used; and they have plenty of influential .mouthpieces who do not fail to represent their treatment in the darkest bght" ' .