THE STATE ADVANCES RECORD

Dominion, Volume 19, Issue 218, 10 June 1926, Page 6

THE STATE ADVANCES RECORD

A remarkable expansion is disclosed in particulars of the operations of the State Advances Department for 1925-26. More especially where assistance to people desirous of acquiring homes is concerned, it is clear that the Department has done and is doing splendid work. Housing advances are now made chiefly, though not solely, to workers, who are enabled to borrow 95 per cent, of the value of a home. In this categbry alone, advances of over £2,460,000 were made last year to 2738 applicants. More workers were assisted and more money was advanced to them last year than in the two preceding years. Under all heads the advances made by the Department last year reached the remarkable total of £6,269,403. As a result of this great effort it is now considered that the arrears of housing applications are being overtaken, and it is anticipated that as time goes on smaller sums will suffice annually for housing loans. In spite of the fact that it was compelled last year to raise its interest rates, though these are still below the rates obtainable in the open market, the Department obviously is in a position to play an immensely useful part in making loans on both urban and rural securities. It is not representative of the total position that the Government of late has had to pay 5£ per cent, on a loan raised locally for advances. Much of the capital of the Department was raised at lower rates, and repayments, which amounted in all branches last year to £1,626,792, now constitute an appreciable part of the sum needed annually for fresh advances. The Department is a standing testimony to the benefits and advantages of the table mortgage system when it is capably and economically administered. As normal times return, it should be well worth considering the feasibility of linking up the helpful operations of the Department with measures directed to the systematic encouragement of thrift in youth. Great benefits to individuals and to the State would be secured if young people could be induced to begin saving at a comparatively early age in order to provide the nucleus of the fund needed later ori to provide them with a home. Already the Department has done and is doing a great deal to keep down rates of interest. Its efforts in this direction would be even more effective if they were supplemented by general saving in the years of opportunity by those it exists to benefit.