hij Loans from Government or I'ltblic Companies. 127 
in, to supply money to landowners from sources more generally 
approved by the nation than the public exchequer. 
4. While capitalists were busy in the establishment of private 
companies as a medium of supplying money for land improve- 
ments, a general Act was passed, called " The Private Money 
Drainage^Act, 1849," (12 and l(j Vic. cap. C.) * the object of 
which was to promote the application of j)rivate money to the 
same purposes and upon the same principles and machinery of 
action as had operated in tlie Public Money Act. 
The term of years for which landowners could charge their 
estates for the repayment of loans was the same under both 
Acts, namely twenty- two years; but the great boon conceded by 
the use of the public money at a low rate of interest became 
manifest directly an effort was made to effect a private loan for 
that period of years. 
In Clause XXXIV. of the Public Money Act it was enacted 
that the land improved should be charged " with the payment 
to her Majesty in respect of such advance of a rent-charge after 
the rate of 6Z. 10s. rent for every 100/. of such advance." 
In Clause IX. of the Private Money Act it was enacted that 
the Indosure Commissioners should issue a grant of rent-charge 
" to be payable by half-yearly payments for and during the term 
of twenty-two years," leaving the landowner to arrange with any 
capitalist lending the money the rate of interest he should pay 
for the same not exceeding 5 per cent., which under Clause IV. 
of the Act was the utmost rate of interest the Inclosure Com- 
missioners could sanction. 
It was soon found that private capitalists could not advance 
money at the same rate of interest, — viz. per cent., — as the 
Government were able to do, and, that as the rate of interest 
they demanded corresponded Avith the fluctuating value of 
money in the open market, the annual instalment exceeded 
the amount tenants were prepared to pay for drainage. This 
will be seen when it is pointed out that the annual instaliuent 
to repay lOOZ. with interest at 4^ per cent, was 71. bs., and 
at 5 per cent. 7/. 10s., instead of 61. 10s. with which the Govern- 
ment were satisfied. 
This, however, was not the only reason Avhy little was done 
under " The Private Money Drainage Act, 1849." Capitalists 
generally objected to advance money repayable by instalments 
on the ground that they were unable to reinvest without loss the 
portions of principal money when repaid, and that where the 
* This Act has since been repealed by the Improvement of Land Act, 1864, 
