SOLDIERS' LOANS.

Auckland Star, Volume LXIV, Issue 285, 2 December 1933, Page 13

SOLDIERS' LOANS.

OWNERSHIP RIGHTS.

NO DANGER OF TRANSFER.

QUESTION IN PARLIAMENT.

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, Friday.

The assurance that there was no danger of the ownership of discharged soldiers' settlements being transferred to banks through the hypothecation of reserves totalling £4,500,000 was given in the House of Representatives to-day. Mr. A. J. Stallworthy (Independent, Eden) said many soldier settlers were uneasy about the matter and it was hoped that there was no danger of banks gaining control or of land titles being transferred to them. The Minister of Finance, Rt. Hon. J. G. Coates: Don't talk nonsense. Sir. Stallworthy said one had only to realise the position of the superannuation funds to see the possibilities that might arise. Mr. Coates said money had been advanced on the security of the reserve fund, and when it was convenient for the country it would be repaid. Mr. F. Langstone * (Labour, Waimarino): Will the Minister tell us how much has been advanced to the Government? Mr. Coates said that £2,500,000 had been advanced last year and £2,000,000 this year, making £4,500,000 all together. It was a convenient way of raising money ■without having to call on the taxpayer, and the money would bo paid back either by an internal loan or by some other method when the finances of the country were buoyant again and when there was sufficient revenue. He could give no indication, however, when repayment would take place, therefore as far as the Government was concerned it was only a matter of interests and costs. The interest being paid was 5 per cent. Mr. A. S. Richards (Labour, Roskill): Isn't that too much? Mr. Coates: You might say it is too much. I quite agree, but that is where we are at the moment. Mr. Langstone: How much is in the reserve account?

The Minister replied that the original value of the securities was about £13,000,000, but some of them had been written down on to:day's values. He thought that the advance was a fair one. It was quite impossible for securities to fall into the hands of the banks unless the whole country went bankrupt. The Minister of Lands, the Hon. E. A. Ransom, said' if any member could point out the case of a deserving Crown tenant who had not been fairly treated and could submit evidence of. unfair treatment he (the Minister) would undertake' to reinstate the tenant. Interest of discharged soldiers' settlement loans amounted to £1,102,750 for the last financial year, and there was no danger of the security of the fund being jeopardised by the hypothecation of reserves.