PERIOD OF LOAN 



119 



terest and Ij per cent, for sinking fund to 

 redeem the loan. 



cost, representing 3^ per cent, interest and 1^ per cent, 

 sinking fund, which redeems the capital debt in thirty-five 

 3'ears. If, however, a property is worth twenty-five years' 

 purchase of the annual value the annual instalment would 

 amount to 4 per cent, on the cost, representing Si per 

 cent, interest and ^ per cent, sinking fund. In this case 

 the capital debt would be redeemed in sixty years. The 

 following table from Mr, Trustram Eve's report in the 

 Report of the Departmental Committee, appointed to 

 inquire into the position of the tenant farmer on a change 

 of ownership of their holdings (Cd, 6030), clearly shows this 

 ratio : 



Table showing Relation between Years' Purchase of 

 Property and Number of Years for Repayment of 

 Loan based on 3^ per Cent. Annuity Tables. 



