9o8 READINGS IN RURAL ECONOMICS 



requisite funds are to be obtained by the issue of British govern- 

 ment stock bearing 2| per cent interest, and not redeemable for 

 thirty years. (3) The advances and the interest on the stock come 

 from a special fund described as the Irish Land Purchase Fund 

 (section 27), which is to be fed by the issues of stock and the 

 payment of annuities. (4) By a supplementary act of 1903 an 

 Irish Development Grant has been created, and it will contribute 

 ;!^ 50,000 annually to the purchase fund. The Guarantee Fund 

 under the act of 1891 is also a possible contributory. (5) But 

 behind all these particular contrivances there is the credit of the 

 British State. It is this that will enable the necessary funds to 

 be raised on reasonable terms. Apart from this powerful lever 

 the system would be impossible ; for the interest on a purely 

 Irish loan w^ould be such as to leave no room for reduction of 

 the tenant's annual payments, or else offer no inducement to the 

 owners to sell. (6) A still greater effect is likely to follow from 

 the grant of a bonus to the seller of complete estates. This gift 

 is fixed for five years at 12 per cent on the purchase-money of 

 each estate ; but the total amount to be so granted is limited to 

 ;^ 1 2,000,000, and is to be obtained by issues of the 2| per cent 

 land stock. The result will be that, when the whole bonus 

 has been granted, the charge for interest and sinking will be 

 ;;^390,ooo per annum. In the earlier years of the process it will 

 of course be much less, and will finally diminish as the work of 

 redemption goes on. 



It is possible from the foregoing details to estimate roughly 

 the burden placed on the British Exchequer. Under existing 

 conditions in the money market most of the land stock will be 

 at a discount, amounting at first probably to 3 or 4 per cent. It 

 is also true that the successive issues will tend to lower the 

 government funds, as the total may in fifteen years or less reach 

 p^ 1 00,000,000 or even ; 1 20,000,000. Then there is the risk 

 of non-payment of annuities and loss in selling portions of 

 estates. When the ^^ 12,000,000 to be allotted as bonus is 

 added, the outside limit of liability may be put at ;i^20,ooo,ooo ; 

 and this will be spread over a long period. Bearing in mind 

 the history of this and other Irish questions, there does not 



