Methods of Financing 



to the total capital sum expended in placing 

 them on the land. In Sweden the practice 

 is to charge interest at the rate of 3*6 per 

 cent, on the total expenditure per holding 

 (including working capital), during the first 

 three years ; and then from the fourth year 

 the loan is divided into two halves, one-half 

 of which is liquidated by an annual pay- 

 ment of 6 per cent, (including interest at 

 the rate mentioned), while on the other half 

 interest alone is paid until repayment of the 

 first half is completed, which occurs in about 

 twenty-nine years from the date of the loan ; 

 then the remaining half has to be cleared 

 off in five years. 



The system proposed here is a com- 

 promise between the two foregoing arrange- 

 ments, the object being to make the holder's 

 annual payments as easy as possible during 

 his initial years, so that 75 per cent, of the 

 interest due from the holder is remitted for 

 the first year, 50 per cent, for the second year, 

 25 per cent, for the third year, and the total 

 thus remitted is added to the capital sum 

 secured upon the holding. In the fourth 

 year the holder will pay full interest and 



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