THE AGRARIAN REFORM OF 1903. 137 



a year for the first three years. If the issue is 

 under par, then the Treasury must pay more 

 than 2-f- per cent, and there is therefore a deficit 

 in the interest paid by the tenants, as this 

 amounts to only 2f per cent. This deficit is 

 made up out of a fund of ;^ 185,000 yearly, 

 which is earmarked for Irish purposes.^ 



Repayment is made by the tenants by a yearly 

 contribution to sinking fund, amounting- to -^ per 

 cent. The tenant's total yearly payments there- 

 fore amount to 3J- per cent. By this low rate of 

 sinking-fund payments the period of repayment 

 is extended from 42 or 49 to nearly 70 (681) 

 years. 



The Estates Commissioners are bound to make 

 an advance in all cases in which the total yearly 

 payments of the tenant come to 10-40 per cent, 

 less than his rent. If the rent is a first-term one, 

 then the reduction on purchase must be at least 



- Of course this is only a form of words. In reality, the 

 higher interest is made up out of Imperial funds, since this 

 ^185,000 is not separately raised from the Irish taxpayer. 

 We have here the almost incredible fact that the credit of the 

 Irish tenant is better than that of the English Government. 

 When the 2f per cent, loan stands at 90, the Treasury pays 

 ■J per cent, more than the tenant. At this quotation, the 

 State must raise ;^i 11,000,000 in order to make its advance 

 of p^ioo,ooo,ooo. The interest of the ;^i 11,000,000 is, 

 indeed, paid out of Irish funds, but the State is responsible 

 for repayment of the capital. In January, 1905, moreover, 

 the undertaking not to issue more than ^5,000,000 sterling 

 was modified on account of the low quotation, and ;^6,ooo,ooo 

 was issued. 



