Locally more valuations are made; {for the purpose of mortgage than for any other, and it is probable that the enormoias development which we have seen take place in "Shanghai within recent years would have never been possible without the facilities for bom owing which lands and buildings are able to provide for capitalists and others.
Money Ioaned out on mortgage in Shanghai has paid its owner well high rates of interests have been obtained and perhaps partly due to the enormous increase in the value of property all round with remarkably little risk, Nevertheless the valuer is incurring a liability and it is ise to err on the side of safety in preparing this class of valuation for the reason that the property may have to be subjected to a forced sale on a week market with arrears of interest and expenses in connex-fon with foreclosure proceedings to added to the amount of the loan.
'A value chauid be arrived at which is likely to be realized even if the property has to be sold under the worst conditions. The net an-jai rentals should how a substi tial margin over the interest.
Suitability of properties for mort~ gage loans may be graded as set out in the first port of this paper. may be employed as no landowner would be likely to part with this class of property ata price which would show a net return of 7 per ce cat. per annum to the purchaser,
Text read from the printed page and cleaned; old type leaves the occasional error.