FINANCIAL TENSION.

Dominion, Volume 1, Issue 305, 18 September 1908, Page 8

FINANCIAL TENSION.

$ THE ADVANCES TO SETTLERS LIMIT. In the Houso on Representatives on Wednesday Mr. Laurenson drew attention to tho dolay which at present borrowers from the. Advances to Settlers and Advances to Workers Departments wero experiencing in getting their loans. Mr. Laurenson desired, if the dolay was duo to shortage of funds, that moro funds should be put at the disposal of both Departments. Tho reply of Sir Joseph Ward was that as tho amount actually paid to borrowers since April 1, 1908, amounted to £908,102 (a period of about iivo months) the rate at which the Department had been lending was far beyond tho average for the year, and necessarily tho amounts must bo spread. Mr. Laurenson said tho Bank of Now Zealand was one of tho few institutions that had not put on the screw. Thero had beon a rush on tho Advances to Settlers Department to tho extent of nearly a million pounds. It showed the extent of the crisis to which tho country had come; and. the magnitude of this question demanded the treatment of tho subject in a statesman-like manner. Otherwise, tho tension would continue —a tension caused, he believed, by tho foreign banks operating in New Zealand putting on the scioiv on tho people here. Mr. Ell considered the Government was doing all it could. Wore further money obtained, the Conservative party and their agents and press would blame them for cxtrnvagancd. Ho assorted tho hanks wore still putting on tho scrcw; there existed a banking ring, and tho Bank of Now Zealand was in that ring. ,