, 1875-09-22

yea even 1O and IL per cent. interest
on the money, as at present, he will
pay the Credit Association s per cent,
of which s are interest and 8 instalment,
80 that, with the same expense, he will, in
o comparatively short time-90 years
have paid of his debt.
The reader who has followed US 30 far,
supposlng there are yet any inhabitants of
this island not fully versed in all the
details OF this perhaps somewhat compli-
Gated matter, may say: "Your argument
is s~pecious, and l would enter your Credit
Association with my encumbered estate, it
/ were only sure of certain things which
seem to be rather problematical. The
first of these doubts relates to the value
the Credit Association bonds would have .
in the market. Would | not be obliged
to sell them at a rate which would make
my loss on that head greater than my gain
in other respectsH To take an example:
Suppose | issue mortgage bonds to an
amount of, say, $1,000, receiving Credit
Association bonds to the same nominal
amount, will I be able to sell them at par,
or how much can / expect them to go
below par?" This is a very important
question, certainly, but one, we think,
capable of being answered in a satisfactory
manner. In the first place, it will be
remembered that the whole amount Of
these bonds thrown into the market will
only be the comparatively small sum Of
100000, for which there is most excellent
security, according to the Credit Associa-
tion Ordinance, the loans being, as already
said, limited to one-half of the appraised
value, and all the participants of the
association being jointly and separately
responsible for the bonds issued to the
full appraisement vaIue gfthe property IN
question, if they have received one halt OF
the said value as q loan, and in the same
proportion to the amount of their loan, If
said loan be less than one-half of the ap-
praisement value Besides this, q perfect
control is exercised, not only, with the
ASSOCIATION as q whole by each individual.
member and by Government, but also.
with each individual property, all of which
must make the payments Of interest and.
capital as certain as such things can be
made. These circumstances alone ought
to give the bonds a good position in tho
market where, besides, they will meet
with friends, the promoters and supporters
of the whole scheme, of which this insti-
tuition is only as it were. one wheel. Bus
this is not all. According to the above
mentioned draft of law, which it is conf
IDENTIFY hoped the Diet will pass, the debt
to the State Treasury from this island,
some $280,000, or nearly Z of the
whole amount, can be paid off with Credits
Association bonds AT PAR. It must be
plain to the least conversant with such
matters that this fact must exercise Q
very great influence in raising the value
of the bonds, as we'll as the general credits
of the island.
We shall now sum up with the
assertion, which it is supposed not
many will gainsay, that never before were
SO favourable offers made to any Colony
as are those embraced in this Central Fac
tory scheme. If the Home Government
and Diet agree in passing this Bill as it
is now before them-and this we have
every reason to hope they will, if we fulfil
our part,-they would seem to have rea-
soned somewhat after the following fash
ion, and we should make a note of it and
do our part to make the best of the offer {;
'Far away in the Western Hemisphere
there are three little islands under the
Danish sceptre, as they have been for .
ages. One of them is now entirely de-