DEAR MONEY: CAN THE GOVERNMENT HELP?

Hawera & Normanby Star, Volume LXV, Issue LXV, 2 August 1913, Page 5

DEAR MONEY: CAN THE GOVERNMENT HELP?

(Special to Star). WELLINGTON, Aug. 1. The House of Representatives spent an hour to-day considering the stringency of the money market. The discussion opened with a declaration by the Hon. Mr Allen, Minister of Finance, that the State Advances Department could not relax its rule of declining advances to repay mortgages. It preferred to help fresh settlers to get ipon the land. A suggestion came from Mr G. W. Russell that the situation justified raising a two million loan to give the State Department a chance of advancing to repay mortgages.- .A number of Oppositionists, who backed this proposition, quoted cases where borrowers offering 8 per cent, on first class security had failed to get the money. Some speakers suggested that the Government was not really anxious to push the scheme of State lending, but the Prime Minister declared that a million sterling was loaned last year to settlers and workers. The Hon. Jas. Allen, Minister of Finance, said it would be impossible to go to the London money market for-a loan such as had been suggested. The practice of stopping advances to repaj- mortgages coining due was commenced on April 1, 1912, by a previous Government. He agreed that this was good policy for the time being. Money was not so dear to-day as six months ago. Only a few days ago a local body raised £50,000 at 5 per cent.