104 THE QUESTION OF A DEPOSIT 



which are inclusive of interest at 5 per 

 cent. * 



These deposits on land and buildings make 

 a considerable call on the small o^vners' capital, 

 but it has been found in practice that when a 

 smaller deposit is asked for the tendency of the 

 small-holder is to lay out almost all the rest 

 of his capital in appliances, stock, etc., before 

 he is really acquainted with the needs of his 

 holding. The result is that his capital is soon 

 expended, and he has no security upon which 

 he can fall back should the need arise. On 

 the other hand, under this system, if after the 

 payment of the deposit and one or two instal- 

 ments he finds a difficulty in obtaining the 

 additional capital he may then require, the 

 Company — still retaining his land — are able 

 to return him some of the money on loan he 

 has paid in purchase of his land, always pro- 



* As in the case of a tenant farmer, if a man has only 

 enough capital to stock his holding it is unwise and un- 

 necessary to insist on a deposit. But in the case of a village 

 farm with a depot established, a purchaser with sufficient 

 cash can with advantage utilize the balance of his capital 

 in payment of a deposit on his freehold. Annual instal- 

 ments are thereby lessened, and credit can always be 

 obtained from the depot if required. 



