I.AND SETTLEMENT AND THE PROVISION OF CREDIT 



selectors almost invariabh^ choose a block which will carry an advance 

 from the bank. Loans, once made, are only Hable to recall for breaches of 

 the mortgage covenant. 



Rates of interest, surrender of securities etc. — Loans made for improve- 

 ment purposes carry interest at the rate of 5 per cent, per annum. The rate 

 chargeable on advances made for other purposes, such as stock, machinery etc. , 

 is 6 per cent, per annum. Interest is calculated on the daily balance and is 

 payable on the first day of January and the ist. of Juty in each j^ear. A closing 

 fee of IDS. 6d. is pa3^able on the discharge of ever>' mortgage, and a production 

 charge of 5s. is made in connection with the lodgement of documents of 

 title for the registration of outside dealings. 



Currency of loans. — All loans made against improvements have a 

 currency of thirty 3'ears, and are amortisable by fiftj^ equal half -3' early instal- 

 ments, the interest only being payable for the first five years. Stock and 

 machiner\' loans are repayable b}' ten equal half-3^early instalments com- 

 mencing three years from date of making the advance. It is, however, 

 the privilege of the borrower to repa3' the whole or an3' portion of the loan 

 at an3' time without notice. 



A typical transaction. — The following entries in connection with 

 an advance to a settler in the Coorow district will serve to illustrate the 

 nature of the improvements effected and the S3^stem of progress payments. 

 Ever3' inducement is offered to the new settler by prompt progress pay- 

 ments, so that on taking up land he ma3' immediateK' find emplo3'ment 

 as his own master. 



