SECURITY FOR OUTLAY 235 



not in a lump sum, nor by instalments, but by terminable annuities, 

 making repayment an almost imperceptible burden. Such process, 

 so it will be remarked, at the same time renders an acceptable ser- 

 vice, sure to be appreciated in our country, well stocked, as it is, 

 with money, to the investing public, by providing a new form of 

 investment, such as — so experience has shown — may be made to 

 attain to the very highest rank of " gilt-edged " quality, overtopping 

 at times even Government securities. 



However, if this result is to be assured, several conditions will 

 have to be fulfilled. In the first place, it is indispensable that the 

 bond should represent real security — that is land, with or without 

 buildings upon it — security to be relied on and leaving a safe margin ; 

 and, in the second, the bonds must be issued in such considerable 

 quantity as to secure for them a recognised status in the market. 

 All evidently hinges upon this, because without easy negotiability 

 the bonds will not be available for long running — which condition is 

 essential. Now, this condition can be fulfilled only by entrusting 

 the management, and more specifically the issuing of the bonds, to 

 a well-recognised body of unquestioned prestige and standing. A 

 single bond here and there will not sell, be it ever so good in itself. 

 It possesses no standardised value. And a single person could not 

 think of finding buyers for his bonds, if only for the reason that he 

 is not endowed with the necessary prestige — nor yet with immor- 

 tality. 



The quality of a well-assured security involves, first, fully trust- 

 worthy valuation of the object to be pledged, with, as observed, a 

 safe margin left to meet contingencies ; and, secondly, an unim- 

 peachable right to pledge, which right must be proved. 



These conditions are capable of fulfilment in several ways- two 

 at least ; and the two are at present known and in successful opera- 

 tion. But in any case, as has been stated, there must be much pro- 

 perty lumped together as security, supplementing itself, as a means 

 of rendering surety still more secure, and making the business 

 worth carrying on altogether. 



In the landschaft the problem has been solved in what may. in a 

 rather elastic sense, be termed a "co-operative" way. A la re- 

 number' of landed proprietors clubbing together, at the <>m 

 pledging all that they possessed, even beyond the properl ies on \\ oicfa 

 loans were to be raised, under unlimited liability, and adopting 

 certain processes of valuation, becoming known to the public and 

 being recognised as fully efficient, readily proved acceptable Becunty. 

 The question of proving a right to pledge the object did Q01 ai 



