FINANCE 89 



The purchase price of each holding, which 

 included the initial outlay, could be paid by- 

 half-yearly instalments extending over a period 

 of not longer than thirty-five years. No 

 deposit was required, and a conveyance was 

 immediately given on possession being taken. 

 The Duke of Bedford holds a reducible mort- 

 gage on each property, interest on outstanding 

 balances being charged at 3 per cent. Pay- 

 ments for the interest and sinking fund are 

 made either by the "Instalment System" or 

 by the " Annuity System." Under the former 

 instalments are higher to commence with and 

 gradually lessen throughout the period of 

 loan ; under the latter equal half-yearly pay- 

 ments are made at the rate of £2 6s. 4|d. for 

 each £100 of the original capital value. 



A leaflet announcing the sale contained an 

 example showing the payments of principal 

 and interest required by the two systems to 

 purchase a holding of the capital value of £100 

 in thirty-five years (see table, p. 90) : 



The " Instalment System " was preferred in 

 almost every case. 



Purchasers were permitted to design and 

 erect their own houses and buildings. r\)r 



