CHEAP AGRICULTURAL CREDIT. 133 



On forfeiture of any land subject to a 

 mortgage, all moneys paid, together with 

 the land, shall vest in the Commissioners. 

 The land may be resold as a settlement 

 purchase. 

 Victoria began to give cheap loans to farmers 

 in 1896 under the Savings Bank Act, which, 

 with the limit of £3,000,000, empowers the Com- 

 missioners to aid with cheap money farmers, 

 graziers, and market gardeners. Advances must 

 be repaid within thirty- one years. In 1904 the 

 amount lent was £147,140; by 1908 it had 

 risen to £2,477,855; by 1911 to £2,797,323. 

 An interesting fact is that during 1906-7 there 

 was a great falling off in the applications for 

 advances, which the Government attributed 

 partly to the exceptionally good season making 

 farmers very prosperous ; partly to the fact that, 

 owing to the State lending money cheaply to 

 farmers, private lenders had brought down 

 their rates. The soundness of the Government's 

 investment is indicated by the figures in the 

 1911 balance sheet, which show that then, of the 

 great total of borrowers, only six were in arrear, 

 the principal owing being £26, and the interest 



