LOANS ON LANDS

Hawera Star, Volume XLVII, 23 August 1928, Page 5

LOANS ON LANDS

AMPLE MONEY AVAILABLE.

WHAT CAUSES DIFFICULTY?

FINANCE MINISTER’S FIGURES

(By Telegraph—Special to The Star.)

WELLINGTON, Aug. 22. The speech of the Minister of Finance (the Hon. AY. Downie Stewart), in concluding the debate on the Budget, was remarkable for its painstaking analysis of the financial situation of farmers.' He showed that ample money is available- on adequate security, and gave details, for the first time, of the results of the rural bond flotation. It was alleged by critics that the finance provided for farmers by the Government was- inadequate, but was this the case? asked Mr. Stew-art. In the Advances to Settlers’ branch the applications came to finder £1,000,000. His experience was that during the sifting process about onethird of them could not- reasonably be considered. In the rural advances branch the Government had done all it had been asked to do. It had provided the machinery, floated the- bond issue, dealt with all loan applications to date, and there was no breakdown due to lack of funds. Mr. H. E. Holland: “How much more money has been available.” The Minister: “We have paid out over , £1.000,000. and the -sale- of bonds up to the present is between £600.000 and £700,000.” If there was to -lie any difficulty in getting New Zealand investors to take up these bonds he would -have no difficulty in obtaining the money, though ihe assumed- that- it was the wish of the fanners expressed when the scheme was advocated that they should bo popularised in the Dominion, because that was the whole basis of the scheme. It was thought that the farmers would buy them at a. discount and use them for repayment* purposes. The term fixed was 20 years, but be was wondering whether a: shorter term would ' make the issue more popular. He proposed this session to take steps to make it clear that- the lionds were not to- be treaetd as part of the public debt-. • Mr. E. A. Ransom : “What is the amount subscribed by the public?” The Minister: “The bank took between £350,000 and £400,000, and the public took the rest.” He pointed outthat in addition to the rural creditscheme many Government departments were lending money freely when security existed. The Public Trustee informed him that he had loaned on mortgage- last year between £3,000,000 and £3,500,000. No mortgages were turned down where there was security. The Government- Insurance Department- was also lending, and there were trust companies- and lawyers with ample funds. “It is not in the lack of funds where the hold-up occurs,” concluded the Minister. “Whether it is a fact that the margin is too tight I do not know, hut that difficulty must lie a North.lsland- difficulty, as there is no such trouble in the- South Island. TP the hold-no is due to the margin T do not know how you can remedy it by legislation, because the- valuer will immediately undervalue to safeguard himself in other directions.”