CO129-285 - Acting Governor Major Gen Black - 1898 [9-10] — Page 351

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(a) Placing all property held on 999 years

lease at a high premium.

(b) Reducing the premium on sales of Crown

Lands from 50 per cent to 60 per cent ac-

cording to locality.

(c) Producing a great decline in the demand

for Crown Lands and consequent falling off

in revenue.

(d) Increasing the stringency in the money mar-

ket by rendering many properties non-nego-

tiable as securities for loans, any lease

having less than sixty years to run being

regarded as insufficient by trustees and

corporations.

2. Another result of the change will be that the city of Victoria will cease to expand, as it will not pay to erect substantial buildings, such as banks, hotels, mercantile offices,&c., on lease-hold ground held for a short term. It will prove more remunerative to purchase existing buildings, pull them down and re-erect, economi- sing the area by increasing the altitude, the effect being to aggravate congestion and intensify the risk of fire.

3. The prospect, which hitherto seemed so fa- vourable of this Colony attracting various new industries to its shores, must dissipate into thin air, asit is quite out of the question to suppose that capitalists will lay down expensive plant and rear massive buildings with no

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