The Guardian AND EVENING STAR, With which is incorporated “The West Coast Times.” FRIDAY, AUGUST 12th, 1921.

Hokitika Guardian, 12 August 1921, Page 2

The Guardian AND EVENING STAR, With which is incorporated “The West Coast Times.” FRIDAY, AUGUST 12th, 1921.

CHEAP MONEY. In these times of stringency, there are those who are husv offering explanations from all aspects as to the < a uses of l lit* financial depression pervading the land. In a thought for the times to-day we quote an extract from a finacial journal hinting that the heap money scheme of a former Government i ■ responsible for putting up the price of land, and placing the farmer in “ a tight, position ” financially. Surely such an idea is a very superficial view to propound. The Government Advances to Settlers Act was passed in 18!)4, during the Seddon Regime, tinder the tutelage of Sir Joseph Ward, then Minister of Finance. That beneficent legislation gave the settlers cheap money for legitimate development of their lands. Not only were the rates of interest brought down substantially, but tho legal costs affecting mortgages, etc., were reduced to a common scale, the effect of which line beep, no doubt.

to save the people generally vast rums of money. In a short time this - heap money scheme was extended to include advances to workers, and also cheap money lor lucal bodies. In tins way not only bas an enormous saving been effected, but the volume of business through the cheap money scheme and the capital >s o rendered available for development and expansion for over a Huarter of a century, the policy-stroke for such it was—hips added enormously to tlie public and private prosperity of the Dominion. It will be within the memory of many bow serious the struggle was before the days of cheap money for settlers to make ally progress with (heir enterprises. Development was restricted. because capital was limited by the impost of heavy interest charges. If the cheap money has put up the price of land, it is only because the money lia s been put into the land. With the capital "the settler has been able to clear and develop his holding. Its production lias been extended, and if lias been better stocked. Tile settler lias got infinitely more out of liis land, ndn bus profit tod accordingly. The introduction of cheap money for the settler, the worker and the local body. ( re a ter] a new era'of advancement and enterprise, and since those days New Zealand has never looked hack. To suggest that the prosperions condition of affairs created by the cheap money scheme has anything to do with the difficult financial circumstances of today is very faulty premises surely. The working of the scheme in point of fact lias been a great success, and the Statobesides enjoying the fruits of the Dominion success reflected in tile general prosperity, has had its profit also from the direct working of the scheme. In regard to settlers, no less than 51,113 have been assisted with the scheme (940 in AYestland), the Dominion total of loans being £19,108,025 (£250165 in Westland). In»the workers’ branch, 14,731 (194 in Westland) have been assisted with a total usm of £1,413,085* (£42,030 in Westland). This branch lias been operating since 19<XS only. For the ten year s the advances to local authorities have been in vogue 1351 applications have been granted, totalling loans io the value of £3,972,0(59. Th ( > business yielded the following interest returns last year:—Froin settlers £345,239; from workers £95,854; from local authorities £103.19(5. The buoyant character of the investments poin's to the uniform success of the scheme. The i heap money has given the average borrowing settlor or worker the opportunity of improving and actually possessing li is own property much quicker, and so placing him in a position of greater aflliience. with added value, to lii s property, which is invariably a very tangible asset. New Zealand has much to la* grateful for to the Liberal Party for establishing the cheap money s< home within the borders of the Dominion.