154 COFFEE PLANTING AND FINANCING. 
gotiates drafts on Colombo, but priucipally cashes 
notes, which are of ail denominations from R100 
to R5, an’ are an immense convenience. It muat 
not be imagined, however, that the cash credits above 
alluded to bear the faintest resemblance, except in 
name, to Scotch ones. In that country—when a per- 
son requires funds he applies to the Bank, which 
grants him the amount on the security of a bond, 
executed by bim jointly with two or more individus 
als of respectability and substance. Beyond a fair 
rate of interest for its money, the bank derives no 
advantage from the bond, and’ the parties who be- 
come joint surety obtain actually no benefit at all, 
having given their names out of pure friendship. 
The Ceylon cash credit is quite another affair, and 
shows considerable ingenuity in its construction. The 
coming crop having been estimated by a competent 
judge, the amount of advance is fixed considerably 
within its probable value, and a bond is signed by 
the planter and his Colombo agents, by which the 
former undertakes to consign all the produce to the 
latter to be cured and shipped. The agents in their 
turn engage to hypotheeate to the bank the bills of 
lading for the coffee when shipped, drawing against 
the same on their London correspondents at the rate 
of exchange of the day. The bank thus employs its 
deposits without risk, and does a profitable exchange 
business on. London; the Colombo agents make sure 
of their commission for curing and shipping; and the 
planter gets his money at 8 percent. Judging from 
the immense improvement visible of late years m 
Colombo, where the dingy hovels in which the local 
millionaires amassed their fortunes have given place 
to palatial edifices, all plate glass and stucco, (!) it 
cannot be urged that the arrangement is unprofitable 
to the agents at any rate. To the banker consider- 
able discretion is left, as he cam fix the rate of ex: 
change at pleasure; but taking the bank, drawing 
rate at Calcutta for six months’ sight bills on Lon- 
don, as the central pivot round which all his opera- 
tions must revolve, it will be found that the planter 
is fairly dealt with, and does not pay more than 2 
or 3 per cent above that rate. 
SHEWING HOW A COFFEE PLANTATION 
CANNOT BE PROPERLY OPENED UNDER £25. 
AN ACRE. 
(To the Editor of the Ceylon Observer.) 
DEAR Sir,—It is not often that matters connected 
with coffee planting in Ceylon are noticed by ove 
