, 1874-07-04

explained, that, if all those proprletors, in
the required condition with regard to en-
cumbrarces, would Join the Credit Asso-
citation by m~ortgaging their Estates and
applying the money raised thereon. in
shares in the Central Factories, there
would be obtained from this source about
$4OO, 900. To us, to whom this question
has for many months been a subject of
daily discussion, the advantage, and really
the necessity, in order to escape the loss
of what they own here, for the unencum-
bered proprietors, whether residing here
or abroad, to Join the institution, may
seem as clear as a mathematical demon
~stration (sugar at $4=the cost of produc-
ton sugar at S3.50=a loss on the pro-
duction) but it does not follow, that others
may not hold on a different opinion
they might e. e. refuse their assent to
the assertion, that our sugars as produced
by the process now in use, will in future
not sell at higher rates than $50 or 81, and
by what reasoning would you be able to
govern their conviction on q point, the
practical solution of which is to depend
upon time Furthermore we must re-
member hat the advantages of a Credit
Association are very far from being con-
fined to its effect on the Central Factories
question, What a beneficial effect on the
whole state of the island would it not
have, if the rate of interest on mortgage
debts were reduced to 5 pr. ct. p. a. and
the payment stipulated at so long terms,
that S pr. Ct. p. a. would %extinguish the
debt with interest in 90 years?
And now the question offers itself: is
it so quite certain and undeniable, that
Estates encountered to the amount of one
half their value and more, cannot by any
means be admitted to the Association Z
The interest of a creditor holding a mort
gage in an Estate with no prospect of ever
being paid except from the surplus re-
venues of the Estate, is no less interviewer
with the fate of the latter than if he were
the owner for if the Estate ceases to
give a revenue, his claim becomes worthless
to him, just as much as IN the same event
the property becomes worthless to the own
er. 1t is therefore but natural to suppose,
that he will be glad to avail himself of any
means holding out q reasonable prospect of
preserving the value of the Estate just the
same as the proprietor; and if the latter IS
expected to consent to relinqulsh a part OF
his right of ownership in the Estate, so as
to obtain a share in an industrial under
taking, which, besides promising to give a
large profit, is acknowledged to afford the
only chance of saving the Estate to himself,
why should not the mortgage-holder be
anxious to employ the same means for the
purpose of ayerting the loss Of his claim,
provided it is in his power to do SO? Now
there is no reason to be found in the nature
of things, why a mortgage-holder should mol
make an arrangement Nth the motgagce and
the association, by which the existing mort
gage is cancelled, new bonds are issued to
the Association, and the bonds Of the latter
sold for the benefit of the original creditor,
the proceeds to be invested in shares of the
Central Factories. He will of course be
aware, as explained by His Excellency at
the meeting the 9th uIt. that the new
bonds of the Association will not on their
first appearance in the market be sold at
the full amount for which they are issued,
the same as was seen in Denmark, when
Credit Associations were first established
there but, in the first instance, would not
in the present state Of things nine out of
Ton ,oor+ror 90 boIdarS with nlaaSura take