Now, any loss on flotation, due to stock being issued at a discount, was to be borne, in the first instance, by the Ireland Development Grant,[155] and, if and when that was exhausted, by the ratepayers of Ireland through deduction from the grants in aid of Local Taxation.[156] The stock, like all Government stocks at that period, fell heavily from the first, and in 1908 the point was reached when further issues would have entailed a heavy loss payable out of Irish rates, growing ultimately, as it was calculated, to an annual charge of more than half a million. The infliction of such a burden upon the ratepayers of Ireland was felt to be inequitable. Ireland was not responsible for the evils which necessitated purchase, and even if she were, the ratepayers were not the right persons to be mulcted. Meanwhile, purchase was at a complete standstill. 4. This serious situation led to Mr. Birrell's Land Act of 1909, which was based upon the Report of a Treasury Committee which sat in the previous year.[157] The problem was twofold: (a) how to deal with future agreements to purchase, between landlord and tenant;(6) how to deal with agreements to purchase pending under the Act of 1903, but as yet uncompleted. (a) With regard to future agreements, there are four main points:(1) The old policy of payment in stock, instead of in cash, is reverted to, and the stock is a 3 per cent. stock. (2) The tenant's annuity is raised from 31/4 to 31/2 per cent. (3) The period of redemption is reduced from sixty-eight and a half years to sixty-five and a half years. (4) The landlord's bonus is allocated on a graduated scale, under which the higher the price the land is sold at, the less is the bonus conferred. These changes, though no doubt somewhat prejudicial to the prospects of Land Purchase, were absolutely necessary, owing to a cause beyond human control--the condition of the money-market. (b) In regard to pending purchase agreements arrived at under the old Act, no alteration is made in the terms of the bargains already concluded between landlord and tenant; but changes are made in the method of financing these agreed sales. Briefly, parties can obtain priority in treatment among the enormous mass of cases awaiting the decision of the Land Commission by agreeing to accept 2-3/4 per cent. stock at a price not lower than 92 per cent, (which means, at present prices, that the loss on flotation is split between the landlord and the State), or, by waiting their turn, they can obtain half the price in stock at 92, and half in cash. Payments elected to be made wholly in cash come last of all. Bonus to be paid in cash as before. Losses caused by the flotation of stock at a discount no longer fall upon the Irish rates. Any loss not capable of being borne by the Ireland Development Grant is to be borne by the Imperial Exchequer.