INTEREST RATES.

Press, Volume LXV, Issue 19612, 7 May 1929, Page 10

INTEREST RATES.

ADVANCES TO SETTLERS. | REDUCTION FORESHADOWED. (PBESB ASSOCIATION TELBOBAH.) NEW PLYMOUTH, May 6. A reduction in the near future of the rate of advances to settlers from 5* per cent, to 5 per cent, and later from 5 to 4$ per cent, was forecasted by the Prime Minister to-night. Dealing at a civic reception in New Plymouth with the Government's financial policy, Sir Joseph Ward said it was evident that the country still wanted a lot of capital for land development, and the intention was to push steadily on with the Party project of obtaining £60,000,000 over a period of years, and making the money available for settlement, at the cheapest possible interest. While the Government was still pushing its election policy of lending money to settlers, he hoped before long ti.o rate of interest would be reduced to 5 per cent., and later to 4$ per cent. Had it not been for the misfortune of such a- large sum of public debt requiring conversion when the United Party came into power, the money would have been lent out at 4$ per cent, from the start. A sum of £1,700,000 w;is available at the present time at 5* per cent, to settlers who had the security and had the valuation fixed up. During the twelve months prior to the present Government coming into power £BOO,OOO was advanced to settlers and workers, but arrears of applications amounted to many millions. During the past fortnight it had been disclosed that all thSfee arrears had been overtaken.