532 Report S.A'.A. Advancement of Science. 



I. The issue by the Government of the country of an inconver- 

 tible paper currency. This method not recommended, as it is 

 fundamentally vicious and economically unsound. The Cape Colony 

 experienced, in the past, the serious and inevitable evils arising from 

 an inconvertible paper currency having a forced circulation, which 

 thus became redundant and greatly depreciated in value. A conver- 

 tibleor inconvertible paper currency, in our case, would ultimately 

 require to be redeemed on a gold basis. 



II. The issue of a large loan for agricultural development 

 purposes. The rate of interest on Government loans depends upon 

 the relative degree of credit employed by the Government in question. 

 The Transvaal has relatively a large public debt of ;^35, 000,000, 

 guaranteed by the Imperial Government, the interest consequently 

 being only 3% per annum. The Transvaal has also a contingent 

 liability of ^30,000,000, as a war contribution from the Colony to 

 the Mother Country. Under these circumstances, the issue of a 

 large loan for agricultural development purposes would be the height 

 of financial folly ; and interest at rate of 3^% per annum would 

 probably have to be paid. The Cape Colony and Natal are able to 

 place their Consolidated Inscribed Stock at 2>h% PS'' annum on the 

 London Market. A loan, large or small, would have to be ultimately 

 redeemed. 



III. The manner in which the capital of the Eur ope ait State 

 Banks, strictly so called, has been raised. The capital of the Bank 

 de I'Etat of Russia; of the Ricksbank of Sweden, and of the 

 National Bank of Bulgaria, was provided by the respective States 

 out of public funds. 



IV. The capital of two quasi State Banks — the Norges Bank 

 (Bank of Norway) and the National Danish Bank — was provided by 

 levies or enforced assessment oji landed property or real estate. This 

 principle may be found suitable to our present circumstances, as 

 vast tracts of grazing, and agricultural land, throughout the Trans- 

 vaal, held by powerful companies, etc., are not beneficially occupied. 

 Such a levy or enforced assessment on farm property would be a 

 legitimate and sound method in which to provide the capital of a 

 local Agricultural or Land Bank. The principle may probably prove 

 to be unpopular ; but it is necessary to choose the lesser of two 

 probable evils, present or prospective. The landowners would be 

 admitted as shareholders, without further liability, of proposed bank 

 in proportion to their contributions towards the capital fund. 



A suggestion for an Agricultural or Land Batik for the Trans- 

 vaal. The Transvaal Government has at hand an organisation which, 

 if taken proper advantage of, would meet the financial requirements 

 of the agricultural section of the Colony for considerable future 

 period. All the monies of the " Guardians' Fund " and the deposits 

 of the Post Office Savings' Bank should, after serving 25% to 30% 

 in cash, be regarded as a general fund to be invested on mortgages of 

 farm property only. This would be a direct and substantial encour- 

 agement of agriculture. The method of employing the funds of the 



