Colonial Land Association,

under which name the farmers will, I hope, combine to treat with the outside world. A young and rising merchant in London was suddenly forced to ask for the assistance of his banker to a considerable extent, and he was going into the Bank to learn his fate, for there was a "crisis" at the time, when he ran against Baron Kothschild, who, being then in a good humour, said a few words to the merchant, with whom he was slightly acquainted, and, after shaking hands, passed on. The merchant was amazed and overjoyed to get the banker's reply to the effect that he might command the resources of the establishment. The manager, from his window, had seen the king of the money market shake hands with the bank's client, and it had the same effect as if the Baron had backed the merchant's bill. Now, I think that if the Government will just shake hands in a friendly way with the proposed Association, by giving reasonable assistance to a Bill in Parliament, the New Zealand farmers will be able to draw on the resources of the London money market to any extent they may reasonably page 6 require. I would therefore advise all farmers to join in forming an Association, in which all shareholders, with the sanction of a strong Directory, will be entitled to raise a sum not exceeding the value of their land as rated by the present Property tax, or the amount for which their property may be at present mortgaged. The Association should borrow upon the combined security in the possession of its members, and should be legally liable for the total amount of annual interest agreed to be paid for loans raised in England to pay off present mortgages. The Postmaster-General, the Commissioner of the Government Insurance Department, and the Public Trustee might be authorised to invest moneys with the Association, just as the Court of Chancery permits its Trust Funds to be invested in 3 per cent Consols, Indian Government 4 per cent Stocks, Canadian 4 per cent Guaranteed Loan, and a few other "safe" things. I may remark here that the better the security offered the lower will be the rate of interest demanded, and I have no doubt that the countenance of the Government to the scheme, and the due protection of the holders of Association stock, would enable farmers to divide a profit of from a half to three-quarters of a million annually, supposing £20,000,000 to be at present invested in rural mortgages, for Mr Holmes recently stated that interest up to 8, 0, or 10 per cent is frequently paid by farmers. I have heard tell of a merchant, in the habit of "accommodating" country cousins, who actually paid 15 per cent for a considerable sum of money. By the time that loan reached the farmer the rate must have risen considerably. Now the answer to this agitation is that it should be left, as at present, to