STATE ADVANCES

Hawera Star, Volume XLVIII, 30 August 1924, Page 5

STATE ADVANCES

SPECIAL PROVISION FOR SETTLERS.

TO MEET EXPIRING MORATORIUM.

(by TELEGRAPH —PRESS ASSOCIATION.) WELLINGTON, Aug. 29.

The following statement dealing with the provision of extra finance for the State Advances Department was made by the Prime Minister in the House of Representatives this afternoon : On account of the extraordinary demand by country settlers for money by way of mortgage on security of their holdings, and also on account .of the term of the moratorium coming to an end in the not far distant future, the Government . have come to the conclusion that it. will be necessary to render additional financial assistance to what has been done during the last twelve months by the Advances to Settlers Department. I have therefore .arranged for an additional £400,000 per month to be made available for settlis from September 1 until the end of the financial year.' This will not interfere with the arrangements already in existence for lending money by the department. Advances will go on just as at present and at about the same rate.. There will be no overlapping as between, what is proposed and what the department are cloing now, except that we shall be able to clear off arrears of arrangements already entered into very much sooner than would otherwise be the case. As Finance Minister I have sufficient statutory authority toenable me to raise the additional eapital I propose to raise the money, ('-400,000 per month) by way of revenue bills at comparatively , short dates, intending to include the amounts in the next loan which New Zealand will require to raise in the first quarter of the next financial year. I have consulted other financial advisers in London and they consider that with qur credit so good as it is the scheme upon which we are workis quite feasible and presents noi difficulties. Members will understand the purposes for which this money is intended—the redemption of existing mortgages, assisting settlers to meetthe moratorium, completion of purchases, or effecting improvements by arrangements that had been made. So far as it is humanly possible to judge there will be no loss to the'State, and 1 am glad to think our credit' will not be seriously affected. There is just °P® thing that I do not quite like though it seems to be impossible to avoid it, and that is by borrowing so much* money in London for these purposes we are transferring the ownership of New Zealand lands to people outside our mVn country; By the e*d: of the financial year the position from the point of view df mortgagors ought . ? , e . considerably improved, especially it this season fulfils its promise of being a particularly good one. ; '

QUESTIONS FROM MEMBERS. (By Telegraph.— Special to Star). WELLINGTON, Aug. 29. . Ihe Premier’s statement was followed by many questions. from. members who were keenly interested, He remarked emphatically that this new money was for settlers only. '■ Mr Wilford: Applications have been coming in at the rate of £2.0v)0,000 a month. Mr Massey replied that they had been tailing off rapidly. • Members' would understand that the advances' to'workers and settlers would go on just as. they were doing. The Department was meeting them to the extent of £350,000 montldy, and the £4,000,000 would be additional. Mr Buddo: Will applications be entertanied for chattel security on leasehold farms:' Mr Massey: This is barred by Actl unfortunately, and I think an. amend-* ment will have to be made in the present law. We are lending money on chattels security now. ' 10^es : With a maximum of £ooo ? Mr Massey concurred, but pointed out that this did not relate to the point raised by the member for Kaiapoi. Mr Ransom asked if any of the revenue bills would he placed in New ZCciitUid, Mr Massey: No; because if we borrow here it puts up the rate of interest. Other things being equal, I prefe, r to borrow in New Zealand except -for that reason, and, the Premier added, hd had noticed a statement that Auckland was particularly favoured in regard to State advances loans, and that they were granted in proportion to population. This was not so. The Ihe loans were granted according to the needs of the population, and Auckland province, which was growing at a tremendous rate, constituted metlnrd ot New Zealand, so there could not possibly be favouritism lJri bodfloans ? YOa l “'’ e *° Mr Massey agreed, but said in regard to individual loans that these were dealt with solely by the Advances Board. The terms of the loans would fie exactly the same as tliev are at present. ‘ 1