The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. FRIDAY, MARCH 21, 1912. LAND FINANCE ACT.

Stratford Evening Post, Volume XXXII, Issue 73, 22 March 1912, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. FRIDAY, MARCH 21, 1912. LAND FINANCE ACT.

.... ■ ■ , ~ ’ HI II I-.. „ A correspondent' ' writes -asking.wlqu ~ aro . Jtlie’ intention and 1 ' Operations of the “Land Settlement Finance Act, s '- as he is desirous of discovering and thinks other of our readers may also i be interested. 'We think therefore a summary of the Act and its principal provisions may not be out cl : 1 place. '1 he “Land j Settlement, Fin- ’ .'ahicc' , Act/’' of 1909,; •■•provides .<i that live or, more persons may-form an association and; enter ; into an agreement 3 ' for the'' purchase ■ of land subject to the provisions of the Act. Land purchased will form a single estate. A scheme of sub-division is to be pro--5 vided of one allotment , (of not loss i than fifty, or more than two hundred acres) for each person or persons as tenants in common. Provision is to be made for the dedication of roads and for alloting the proportion of expenses of purchasing, reading, and general costs to each member, every such member entering into an agreo- ; ment to pay his proportion. Every purchaser of land under this Act is to he qualified in accordance with section 97 of the Land Act, 1903, to become a lessee of Crown land under part 111. of the Act. All the agreements must be submitted to and approved by the Board of Land Purchase Commissioners. The powers and functions of any such association will he exercised and executed by the Public Trustee, who will receive and pay all monies on its behalf. Money for the purchase of the land and for leading purposes may bo raised by debentures hearing interest not greater than 5 per centum per annum, such debentures being payable 21 years from date thereof and guaranteed by the Government. The members of the association are jointly and severally liable to the vendor for any unjustifiable breach of the agreement to purchase after an Order-in-Conncil authorising the same has been issued. On the association becoming owner of the property, each member, on the payment of not less than four per centum of his portion of the purchase money, becomes the owner of allotment in fee simple, subject to a mortgage for the balance of tho purchase money at an interest computed at a ! rate greater by one-fourth per centum ■ per annum than the rate of which i tho debentures have been issued. 1 It is also provided that no member ' can alienate or live away from his r land without the consent of the Min- I ister of Finance, until at least one • third of the mortgage moneys ha’.v'l been paid. If from any cause an I ] original purchaser fails to complet-' i Ins purchase, tho association may re-1 • sell the allotment to any other pev- j : son for the same purchase money ; hut such person must lie qualified uutier section 97 of the Land Act of " 190(3. Further, a purchaser can iot f assign his contract of purchase. An j amending Act passed in 1910 provides s that in certain eases allotments may v exceed two hundred acres in area, and j that all land purchased under .he;! principal Act must he subject to their; Land Transfoi Act. Our correspond-1 out also asks if this New Zealand I ? Act in its working is similar to the law controlling Credit Land Banks on j j

the Continent of Europe. It is not so in its main features. With regard to Credit Land Banks it may he noted that before the reforms which were adopted between 1821 and 1850 the Prussian farmer held in's land from the noble in terms of the feudal system. He gave gratuitous service to his lord, and was subject to various small and irregular exactions in the nature of rent. The farmer could not own or purchase land. The Stein and Hardcnburg reforms abolished this state of things, apportioning the land between the peasant and his feudal lord and allowing the peasant to become the owner of his land on the basis of a twenty years’ purchase of the estimated value of his services and obligations to his lord. To enable the peasant vo liquidate the dues owing to his former landlord Credit Land Banks were instituted in Prussia in 1850 These banks advanced the peasant proprietor the value of his former landlord’s claim..: upon his land, such advance being a first charge upon the land. These advances were represented by debenture bonds for small amounts. The owner of the land, however, could pay any sum at any time he thought lit to reduce his liability, but the whole amount had to be wiped off m fifty years.