62 THE IRISH AGRARIAN PROBLEM. 



and not the owner himself, could negotiate such 

 a sale. The " Settled Estates Act " of 1882 

 enables the owner to sell his estate, but he is 

 obliged to invest the proceeds in the same 

 restricted manner, in the form of securities 

 tied-up for the wards. As trustee securities 

 only yield from 3 to 3^ per cent, interest at 

 most in England, a sale always means restric- 

 tion to a rate of interest at 3J per cent. 



The third and most important point is the 

 encumbered condition of many Irish estates. 

 For decades the owners have lived beyond their 

 means ; they have carried forward as assets 

 arrears of rent which could not be collected ; 

 and, as the law of primogeniture was in force, 

 they have made settlements for life on other 

 members of the family. The result was a 

 heavy burdening of estates with mortgages. 

 These mortgages are partly in the hands of 

 members of the family ; but also partly in pos- 

 session of insurance companies, lawyers, &c. 

 The big Irish corporations, and especially 

 ecclesiastical associations, have a considerable 

 portion of their capital invested in mortgages of 

 this kind. The first mortgages are generally 

 excellent investments, for they are absolutely 

 secure. As, however, a system of bonds and 

 a mobilised mortgage system in general does not 

 exist, there is no good market for such mortgages, 

 and the rate of interest is very high — 5 to 6 per 

 cent, is by no means rare. The incumbrance of 

 an income of ;^i,8oo with a settlement of ;^6oo 



