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11

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111. General Provisions. Article 11. The general account which is to be rendered comprises the period between the Ist January and the 31st December. Article 12. The officials and employes of the Land-mortgage Bank are forbidden to accept from persons interested any remuneration whatever for their official services. Article 13. The offices of the Land-mortgage Bank are open to the public, excepting on Sundays and holidays, in the morning from 8 till 12, in the afternoon from 2 till 6. Nevertheless, the cashier's office closes at 4 o'clock, and on the last working-day of the month at noon. Article 14. The present regulation shall come into force immediately it has received the sanction of the Executive Council. In the name of the Administrative Council of the Land-mortgage Bank. L. Kurz, Councillor of State, President. r.'.izp.Ti Schcerer, Notary, Secretary. Berne, 15th November, 1875.

The Executive Council of the Canton of Berne sanctions the two regulations for the Landmortgage Bank which precede, and orders their insertion in the, Bulletin of Laws and Decrees. In the name of the Executive Council. Hartmann, Vice-President. Berne, 3rd December, 1875. Dr. Tiuechsel, Secretary of State.

Enclosure 5. Extract from a Letter from an Official in the Berne Land-mortgage Bank. Caisse Hypothecaire. We grant loans on mortgage—on land for about two-thirds of the estimated ground-tax value; on houses, for about half of the fire insurance amount on buildings. The borrowers have to pay 4j per cent, interest, at present, per annum on the amount of the loan, besides f per cent, off the loan every year —in all, 5 per cent, per annum. When applying for a loan, a description of the object of mortgage by a notary has to be handed in, which is then thoroughly examined, if ratified by the " Greffier dv Tribunal" of the respective locality. When everything is found in order, then the loan is granted by our directors, who meet once a week to discuss business on hand. Ours is, I believe, the only mortgage bank in Switzerland with State guarantee, the others being all private concerns. We cannot lose anything, as the commune wherein the object of mortgage is situated has to take over the debt should any borrower become unable to continue his annual payment. To obtain cash to pay the loans, besides the subsidy from the Cantonal Government, we issue bonds for deposits, at present at the rate of 3| per cent, for six months certain, and savings-banks books at 3Jr per cent., the former with yearly coupons. For the last few years we have always had too much money flowing in. Berne, 4th January, 1886.

Enclosure 6. Mr. C. C. Thornton to the Marquis of Salisbury. Mv Lord, — Berne, 7th January, 1886. In continuation of my immediately-preceding despatch of this series, of the sth instant, I have the honour to transmit to your Lordship, by book-post this day, printed copies of the laws and regulations, as well as of the latest obtainable annual reports, of the land-mortgage banks existing at Geneva, Fribourg, Baleville, Liestal in Bale-Campagne, and at Lengburg. It appears from these documents that, in regard to most of them, the respective Cantonal Governments exercise a supreme control, and possess a certain share in the undertaking. I trust that the information now supplied may prove sufficient for the requirements of the Government of New Zealand. I have, &c, The Marquis of Salisbury, K.G., &c, C. Conway Thornton.

Enclosure 7. Statutes of the Mortgage Bank of Basle. — (April, 1863.) I. Name, Aim, and Capital of the Bank. 1. There is formed, with the approval of the authorities of the Canton of Basle, under the title''Mortgage Bank of Basle," a joint-stock company having its office and tribunal in the Town of Basle. 2. The aim of the company is to advance money on good mortgage security, to borrow the requisite moneys for that purpose, and thereby to promote credit. The capital of the company is fixed at 5,000,000f., consisting of 5,000 shares of the value of l,ooof. each; of which, as first issue, will be distributed 2,500 shares, of the value of