"CHEAP MONET" FOR THE FARMERS.

Timaru Herald, Volume XLI, Issue 3272, 23 March 1885, Page 3

"CHEAP MONET" FOR THE FARMERS.

SIR JULIUS VOGEL'S SCHEME.

Sir Julius Vogcl forwards to the papers •copy of a sketch of the measures which woul giro effect to his roniarks the other evenin concerning the obtaining of money cheap] for loans m email amounts for improvin hinds. He wishes it to be understood _ tha the Government have not decided on intn ducing the measure. It is one to which thei may be great opposition, and it remains, I save, to be «een if there i», on the other haa«

a stronger desire to support it. The Knglisl Government have fora long period lent tnone^ for land improvements, but under condition applicable principally to large estates, whils the proposed measure deals only with amal ones. A Company authorised by Parliament maj apply to the Governor from time to time t< guarantee debentures to an amount not oxceeding the amount authorised t by Parliamenl to be borrowed by such Company. 1. The debentures shall have a currencj of not exceeding 40 years. 2. The rate guaranteed shall' not exceed 4i\ per cent, and shall be such rate as will return clear of expenses about par. 3. Tho proceeds of such debentures shall be paid to the account of the Government, who shall be responsible to the Company foi interest up to the date of the money being employed, at the rate paid to the Government for interest on its balances m London by the Government bankers ; and, also, foi the cost, if any, of placing the money at command m New Zealand. 4. The Company may lend any part of the money, m sums not exceeding £3000, on the security of freehold land, at a i"ate not exceeding 5$ per cent, subject to the following conditions : — (a.) The money may be lent on land already improved or occupied, or it may be lent for the purpose of improving land, and for the erection of farmers' dwellings. (b.) If the money is lent upon land already improved, the amount lent must not exceed two-thirds of the value certified by two valuators, from time to time appointed and approved by the Colonial Treasurer and Public Trustee. (c.) If the money is lent for projected improvements, the amount must not exceed two-thirda of the value which the Baid land will have, with the improvements when completed, certified by two valuators as before. (d.) When money is lent for projected improvements, it must be paid from time to time, as the improvements are effected, as certified by the two valuators. («.) Before paying the moneys. aforesaid, a solicitor, approved by the Colonial Treasurer and Public Trustee, shall certify that a first mortgage is satisfactorily executed m favor of the Public Trutee, as joint trustee for the Government and the Company, but with the power to the Company to collect and enforce the payment of interest. (f.) When any loan on mortgage is paid off, the money to be deposited, as m tho case of when first borrowed, and to be available for fresh issue. (g.) If the Governor is called on to pay any sum of the amount guaranteed, an,d the Company fail to repay it within six months, the Governor to appoint directors to supersede the existing directors, who may, as they think fit, either wind up the Company or carry it on if they are able to dis charge the liabilities due to the Government. (A.) The Company borrowing shall leave an amount of uncalled capital auffi cient to cover the ' amount of the debentures guaranteed by the Government. If the Company also .borrow on debentures unguaranteed by the Government, the amount of such debentures, together with those guaranteed by the Government,. shall not exceed the uncalled capital. (t.) If, under the above clauses, the Governor has to appoint Directors, one half of such Directors shall be shareholders, but the Chairman shall be appointed by the Governor, and he need not be a shareholder, and shall have a casting besides a deliberative vote. (&.) The Company may make a condition of its loans the payment of a sinking fund, m which case the said sinking fund shall be payable to the Public Trustee, and bo invested by him m securities approved by the Colonial Treasurer. " 5. The Company may also lend by way of terminable annuity any of the money obtained from the guaranteed debentures to holders of land purchased from the Crown on deferred payments, and lands taken up under the conditions of special settlements, provided such loans are only for projected improvements s and the provisions of sub-sections C and D shall apply thereto, provided that tho two-thirds mentioned m sub-section C shall read as one half ; and provided further that the amount lent shall not exceed four-fifths of the cost of such improvements. Loans under this clause shall be jubject to so much of the other conditions contained m the sub-sections of the last preceding clause as, mutatis mutandis, j are applicable thereto, and shall be further t subject to the following conditions : — (a.) The improvements must be for dwelling houses or for substantial agricultural improvements, the nature of which shall be defined m the Bill. (J.) Liability created shall be a first charge on the land. (c.) In case of default m the payment of interest or sinking fund (if any) the Company shall give notice of suoh default to the Land Board for the district within which the land is situated. The Land Board shall take such steps as it would m the case of failure to pay the instalments on deferred payments. (d.) If the Land Board requires that the Crown resume possession, the land shall remain charged with the liability, and steps shall be taken to recover the same ; or if the arrears with interest are discharged the loan may continue on the original conditions. ,