FARMING OR OWNING LAND? 91 



out of the produce of the land itself. Purchasers from them 

 obtain the further important advantage of exemption from all 

 State taxes until the whole instalments of the price have been 

 paid off, and this usually extends over the first seven years. 



Let us consider the advantage of this credit plan to the 

 father of several sons in this country, to whom he may be 

 anxious to give the means of starting in life. If he desires to 

 place one in a farm in England, of 300 acres, he must provide 

 him with a capital of 2,OOOZ. But if, instead of making his 

 son the tenant of another man, he determines to purchase a farm 

 of the same extent for him on the prairie, he may pay the advance 

 interest of the purchase money of the land, fence it, build on 

 it, stock it, and sow the first crop for about 500/. Two years 

 elapse before the first instalment of the price is due, and by 

 that time, with good management, the land should have yielded 

 enough to pay it, besides all the expenses of management. An 

 intelligent, prudent man, with 500Z. in his pocket, may rely on 

 finding that sum sufficient to start him successfully on 320 

 acres of prairie land, if he avails himself of this credit system. 



His position will be this. He enters into a contract with 

 the Company for the purchase of 320 acres of their land, at the 

 price of 505. an acre. He pays 6 per cent, advance interest 

 upon this, but he pays nothing further for two years. His first 

 instalment, one fifth of the price, then becomes payable, and 

 each year thereafter, till all is paid, another fifth. His account 

 will stand thus : 



Two years' advance interest on price of land, .... 48 

 Contract price of fencing 100 acres, breaking it, sowing with 

 wheat, reaping and thrashing, and for building a house, sta- 

 ble, and shed, 300 



Price of horses, implements, and harness, 110 



458 



