, 1875-10-16

tories should receive every possible encou-
ragement and support, but simply, in what
manner we can raise the $4,000
which it is required from us to contribute
as a condition for obtaining from others
the far larger amount Of the cost.
That the sum should be got from ready
money now free for disposal in the island
is out of the question in the present state
Of the country, after an unprecedented series
Of ~ruinous years, and quite as useless
would it be for any Individual to attempt
to borrow money outside the island even
on the best security in landed property OF
the island. There is but one way of gaining
the end, by a combination of proprietors
similar to those already many years exist-N
ing both in Denmark and Germany, by
which they render their estates jointly re-
sponsible for a sum of q certain magnitude
to be divided among them in proportion
to the security each contributes TO the
fund, and r~epayab!e on more easy terms
than those on which money could be Dor
rowed in any other manner, the direction
and administration ofthe concern being plac-
ed under a Board of Directors under the
guardianship of the Government. This
constitutes the so-called Credit-Associa.
tons, which have had the most beneficial
results in the two countries named. II
they have proved so advantageous in coun-
tries, where there is no difficulty in bor-
rowing money at q moderate interest,
wnen proper security can be given, how
much more must it be the case in a place,
where the loan of money as an Investment
is in practice scarcely known, because
capital is no sooner formed than it
is removed from the island, and
where whatever can be borrowed, is
done SO st a discount Of 9 to 10 p. Cent.
paid in advance, There are, in fact, with
the exception of q comparatively small
amount under the administration OF the
Board of Upper Guardians, scarcely any
mortgages on Estates, having their origin
10 loans of money !; hey are all, with that
exception, the results OF purchases OF:
Estates, divisions among heirs, or arrears
Of debts contracted in different ways.
The English West India colonies have,
It would seem, an advantage over us in this
respect, that in case Of death the property
fails to one heir, who thus, if the property is
not already cncumbered beforehand, sue
ceeds and continues the ownership, without
having to entangle himself in debt. With
US this occurs only in those particular cases,
where there is but one next in kin, or
the property is left by wi to one heir.
In the generality of cases the Estate is
bought either by one of the co.heirs or by
a stranger, but in either OF these cases the
new owner has to begin with a heavy
debt. AS this practice continues from
generation to generation, new mortgages
are continually made, while the old ones
are being paid off, and it is this, which
makes it appear, as if the island was not
able to support itself, whereas 1T is in reali-
ty a favourable sign of the resources of
the island, that Estates are continually
being bought on payment merely of q
certain proportion, say one fifth, one sixth
or less, Of the purchase sum, while both
buyer and seller rely upon the future
revenues of the Estate to furnish the
means both Of subsistence to the owner
and of paying interest and instruments on
the capital. It is undoubtedly a bad sys-
TEN, which carries with it the effect of in
cessantly draining the country of the money
produced, to satisfy the claims of mort
gagees living abroad. We mention it
because it serves to explain, why so many
of the Estates of the island are ex-
cluded from joining the Credit Associ-
alton. tt ia not because' those Estates