LOANS TO SOLDIERS.

Gisborne Times, Volume XLIX, Issue 5000, 15 October 1918, Page 2

LOANS TO SOLDIERS.

METHODS of . FURNITURE AS SECURITY. With a view to- ascertaining under what conditions various patriotic organisations disbursed loans- to returned soldiers the Citizens’ Defence Committee wrote to- a number of such institutions'for particulars. At yesterday’s meeting- of the Committee — Mr G. Stock, presiding—replies Were received in two cases. ' - Tile Wairarnpa Patriotic Association, in their answer to the enquiry, stated- that -almost from the inception of the fund advances had been made to returned men to sot them up in business'. A hand-book, was being prepared by the Association and a copy would be 'forwarded to the Committee when it was confirmed

’The Taranaki Provincial War Relief Association in the course of their reply, stated that £IB,OOO out of a fund of £52,000 had been allotted for loans and had all been expended. The Association had now called a halt until the fund could be increased or until several loans could be made from repayments on loan accounts. The general principles- adopted had been ah follows : —Maximum sum in any one case £500; maximum term, five years; repayment always required. For a loan to acquire a freehold property (dwelling) the repayments would be £25 to £SO per annum, the balance being paid atthe end of the term. In regard l to loans for farming, the repayments would be in all probability £SO for the first year; thereafter £IOO pelannum ; the balance at the end of the term. Loans for business purposes were usually repayable in monthly or quarterly instalments 1 , this, of course, being dependant on the 'nature of the buffi ness. The. usual rat of interest .charged was 4 per cent and the Association always endeavoured to obtain the very best of security, thus safeguarding the funds. The advantages of thin class of relief were (a) reasonable interest'; (b) easy repayments; (c) easy terms as to- security. Alany of the loan); were secured by personal guarantee. This did not affect the rate of intrest and afforded an excellent means foran outsider to assist any returned man in whom lie had sufficient faith. The guarantor may have an abundance of asserts but very little ready cash and he would not be able to assist a returned man at a lower rate, of interest than the bank rate, possibly plus one per cent. The Association bad also instituted a scheme for lending money for the purpose of acquiring furniture for th e benefit of soldiers who were making a home or fe-entablishing one. In these cases a loan was usually granted repayable by quarterly instalments spread over a term of about three years, the first usually being free of interest. All canes were considered on their merits and there was generally a concession made in the matter of interest or repayments. For example in a c-ase of hardship the loan might be granted during tile first year free of interest whilst possible no repayment ot instalment might bo required for that period. The executive had. never assisted a man into any yen-" ture without first being convinced that lie bad a good chance of succeeduifr in that particular line. The letters were received. Air Oman said that it had been stated that the executive . was going to “turn down” security on furniture If they were going to do so they should say so definitely straight away.. The chairman said that the decision of the executive was final. The case in question was one in which a man wanted a loan of £65 on furniture, and he had a section which was bet- . ter 'security. It was more protection to the man himself to give a third mortgage as security for the loan. The Committee was prepared to consider loans on any security and every application was considered on it's merits. Mr Birred said that he felt certain they would be deluged with canes in which furniture would bo offered. Th e matter then dropped.