"CHEAP MONEY” FOR THE FARMERS.

Temuka Leader, Issue 1318, 24 March 1885, Page 3

"CHEAP MONEY” FOR THE FARMERS.

Sir Julius Vogel has forwarded to the Lyttelton Times a sketch of the measure which would give effect to his remarks concerning the obtaining of money cheaply for loans in smqll amounts for improving lands. He wishes it to bo understood that the Government have not decided on introducing the measure. It is one to which there may be great opposition, and it remains, he says, to bo seen if there is, on the other hand a stronger desire to support it. The English Government have for a Ifing period lent money for laqd improvements,’ but under conditions applicable principally to large estates, whilst, the proposed measure deals only with small ones. A Company authorised by Parliament may apply to the Governor from time to time to guarantee debsntures to an amount not exceeding the amount authorised by Parliament to be borrowed by such Company, 1. The debentures shall have a currency of not exceeding 40 years. 2. The rate guaranted shall not exceed per cent, and shall he such rate as will return clear of expenses about par. 3. The proceeds of such debentures shad be paid to the ticoount of the Government, who shall be responsible to the Company for interest up to the date ®f the money being employed, at the rate paid to the Government for interest on its balances in London by the Government bankers ; and also for the cost, if any, of placing the money at command in New Zealand.

4. The Company may lend any part of the money in sums not exceeding

£3OOO, on the security of freehold land at a rats not exceeding o| per cent., subject lo 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 fanners’ dwellings. (6.) If the money is lent upon land already improved, (he 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-thirds of the value which the said land will have, with improvements when completed, certified by two valuators as before. ( d .) When money is lent for projected improvements, it must be paid from lime to time, as the improvements are effected, as certified by the two valuators. («.) Before paying the moneys afore said, a solicitor, approved by the Colonial Treasurer and Public Trustee shall cert fy that a first mortgage is satisfactorily executed in favor of the Public Trustee as joint trustee for the Government and the Company, but with the power to the Company to collect and enforce the payment of interest. (/.) When auy loan on mortgage is paid off, the money to be deposited, as in the 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, and 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 discharge the liabilities due to the Government. (/&.) The Company borrowing shall leave an amount of uncalled capital sufficient 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. (».) If, under the above clauses, the Governor has to appoint Directors, one half of such Directors shall be share* holders, but the Chairman shall be appointed by the Governor, and he need not bo 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, in which case the said sinking fund shall be payable to the Public Trustee, and be invested by him in securities approved by the Colonial Treasurer. 6. The Company may also lend by way of terminable annuity any of the money pbtaiped 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 ; and the provisions of sub-sections C and D shall apply thereto, provided that the two-thirds mentioned in sub-section £i 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 subject to so much of the other conditions contained in the sub* sections of the last preceding clause, as myitatis, mutandis , are applicable thereto, and shall be further 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 in the Bill, (6.) Liability created shall be a first charge on the land. (c.) In case of default in the payment of interest or sinking fund (if any) the Company shall give notice of such default to the Land Board for the district within which the land is situated, The Land Board shall take such steps as it would in the case of failure to pay the instalments on deferred payments. (eJI.) 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.