95 



The rights conferred on the Government in respect of these 

 loans were : a preferential charge upon the crops, a charge upon 

 the land, and a power to sell the borrower's interest in the land 

 on default of repayment according to the specified time and 

 manner. 



The borrower was to covenant : to use the loan on the cultivation 

 of the land ; to repay the loan with 6 per cent, interest and all 

 expenses incurred ; to produce, if required, at stated intervals, and 

 vouch for its accuracy, an account of expenditure ; to allow in- 

 spection of the land by government agents ; to uphold cultivation 

 so that the security is not deteriorated ; and if required, to inform 

 the agent of sales and contracts for sale of produce, and give an 

 order on the purchaser for purchase money to be applied to re- 

 payment. 



The Colonial Secretary was appointed Chief Loan Officer ; the 

 Auditor General and a clerk in the Colonial Secretary's Office 

 were also Loan Officers. 



The conditions under which loans were granted were : — ■ 



(1) That no loans were to be granted where the area in cul- 

 tivation was less than 5 acres, unless the applicant was unable to 

 work on his own land and had to obtain assistance. 



(2) No more than £3 an acre was to be lent. 



(3) The loans to be advanced in seven monthly instalments. 



(4) The rate of interest, 6 per cent, per annum, calculated 

 monthly. 



(5) Loan to be repaid, one-half on May 15, 1905, one-fourth 

 on June 15, 1905, and one-fourth on July 15, 1905. 



(6) In case of default, the Loan Officers had the power to 

 assign the produce of the borrower's land to nominated buyers. 



The afflicted parishes were divided up into small districts, and 

 local committees appointed in each district to advise the Loan 

 Officers confidentially of the trustworthiness and ability to repay 

 of each applicant for a loan. Help was given by some of the 

 Instructors, and Revenue Officers, and a Travelling Agent was 

 appointed. No salary was granted to any officer in respect of his 

 services, except to the Travelling Agent. The expenses have 

 thus been kept low, and it is anticipated that the 6 per cent, 

 interest charged will not only repay Government 3 per cent, on 

 the money advanced which would have been earned on deposit, 

 but also all the incidental expenses. 



There were 2,983 applicants for loans, and after inquiry loans 

 were granted to 1,477 persons, amounting altogether to £36,704. 

 . The full amount of £3 per acre was not in all cases granted or 

 claimed. If a rough calculation be, however, made, and the 

 £36,704 be divided by 3, we get 12,235 acres, chiefly bananas, 

 amongst 1,477 borrowers — an average of 8J acres per borrower. 



As the time for repayment has not arrived it is impossible to 

 to say yet whether all the loans will be repaid without default, 

 but the Government does not anticipate any loss. 



