ADVANCES TO SETTLERS ACT.

Auckland Star, Volume XXVI, Issue 110, 9 May 1895, Page 5

ADVANCES TO SETTLERS ACT.

AUSTRALIAN COMMENT,

Bkisbane, May 8,

The'Brisbone tc Courier," commenting on the Adv&nces to Setblera Acb of New Zealand, considers iti a good thing for the borrower, bub strongly savouring of in.justice to lending, institutions and private mortgagees who have advanced Joans on values which now leaves them no margin. The Act, it says, seems adapted to transfer to tho Government Lending Board all giltedged securities in New Zealand,and to leave to the ordinary money-lenders such properties as are nob good enough for the Board. This is calculated to extinguish the money-lending industry altogether. However, adds the "Courier," the ingenuity of the persons whose interests are menaced, is likely to be equal to the exigency, and there is a probability that some of the existing mortgagees will discover means of foisting doubtful securities on the Board. i • •• Sydney, this day, : . The " Daily Telegraph," referring to the Brisbane" Courier's" article on the Ari--1 vances to Settlers Ace of New Zealand, says it hardly thinks so much of tho gilt-edged securities will go to the Government lending office ■as the "Courier" imagines, lb 18 • iiuitQ " possible to place firstclass 'mortgages at six per cent, or even below that ab the present time, and, therefore, it in probable the moro doubtful securities wiil'bo transferred to the State lending office.. The efiecjp will be to level down all rates to the official rate, and lending companies will only tako the beat properties on such terms. Rates are slowly coming down, and they would be lower oven than they are now if it were nob that the reconstructed institutions huve to pay 4i per cent. Banking nod mortage companies will ba conducted more economically, and on a different basis in future, buo, stiil, it ia quite likely the Govqrnment Department will supplant a good deal of capital now employed in the Advances to Settlers Act of Now Zealand.

The political aspect of the whole proceeding is very serious,' and ; the result of the experiment Can only be tested by time. A strictly non-political and capable administration must be ossential to its success. . ' '■ . ■.. .;■'