1912.] Tenant Farmers and Sales of Estates. 925 



institution will then lend to the farmer four-fifths of the pur- 

 chase money, to be repaid by annual instalments spread over 

 a period of 75 years, or such period as may be arranged between 

 the purchaser and the institution. Additional money will be 

 obtained when necessary by the issue of bonds to carry interest 

 at si per cent, or such a rate of interest as would cause them 

 to be taken up whenever issued. 



State Purchase.— (8) In view of the experience of the Small 

 Holdings Acts, and the strong desire which undoubtedly exists 

 amongst farmers that they should remain tenants, it is probable 

 that no large percentage will desire, or be in a position to avail 

 themselves of, a scheme of State-aided purchase, and in these 

 circumtances the Committee are of opinion that landed estates 

 should be purchased and managed by the State, the farmers 

 in this case being the tenants of the State. 



In regard to the scheme of State-aided purchase (see recom- 

 mendation (7) above), Mr. Parker states that he is entirely 

 opposed to the recommendation, and Mr. Trustam Eve recom- 

 mends in the place of Sir Edward Holden's scheme that legis- 

 lation should be introduced at an early date to enable tenants 

 to purchase their holdings by voluntary methods, from their 

 landlords, by means of reducible mortgages, to be arranged by 

 the State on the following plan : — 



(1) The scheme to be confined to: — (a) Sitting tenants. 

 (b) The son of a sitting tenant on nomination of the latter. 



(2) The amount of the purchase money to be voluntarily 

 agreed upon between the owner and sitting tenant. 



(3) The State to advance the whole of the purchase money, 

 which will be paid to the owner. 



(4) The State may receive part payment of any amount, 

 at the discretion of the tenant. 



(5) The mortgage to be repaid over a period of years, and 

 the interest to be si per cent. 



(6) The annual sinking fund to repay the capital to be 

 based on the 3} per cent, tables, and to vary in direct pro- 

 portion to the number of years' purchase which fairly applies 

 to the net annual value of the holding. 



(7) No advance to be made by the State in respect of any 

 proposed sale and purchase unless the Board of Agriculture 

 certifies that the proposed purchase money is not in excess 

 of the market value of the holding. 



