THE DEMAND FOR MONEY.

Press, Volume LXIV, Issue 13226, 21 September 1908, Page 3

THE DEMAND FOR MONEY.

CONTINUED STRINGENCY

(sriciAL to " — _ riutss.") WELLINGTON, September 20. The demand'for money continues to be greater than the supply, and members of Parliament are in receipt of numerous letters complaining of the difficulty of getting supplies from the Government lending department. In Saturday's "Post" there appears a letter, signed "Elector," in which this fact is referred to. "For weeks past," says the writer, "the Government department has had no money to lend, ' and he proceeds to say that many who counted upon getting loans have been put into awful straits and some nearly ruined. A "Post" representative made enquiries, and it was officially explained that for the past twelve months the department has been overwhelmed with requests for money, applications being received at the rate of about sixty per day. Every effort has been mado to cope with the demand, and loans were restricted some three months ago to a maximum of £500 each, in accordance with a provision contained in the. Government Advances to Settlers Act, providing that applications for loans not exceeding £500 shall have priority, over applications for larger sums. Notwithstanding this applications continued to reach the department as fast as ever, and the amount paid to borrowers for; a period of five months from April Ist .last totalled £906,102, a rate far beyond the average > for a previous similar period. Obviously it became necessary to pay over advances in the order in which the relative mortgages were completed. It is admitted that under the circumstances some inconvenience to borrowers has been caused, but it is claimed that the extravasant language of "Elector" is not justified. •