SIX MILLIONS.

Lyttelton Times, Volume CXVIII, Issue 18534, 9 October 1920, Page 9

SIX MILLIONS.

sm SETTLEMENT OF SOLDIERS. LAST COMPULSORY LOAN. (Per Press Association.] WELLINGTON. October 8. In the House of Representatives this afternoon Air Massey moved the second -reading of tho Discharged Soldiers Settlement (Loans Bill. He said that tho Bill could scarcely be called contentious, as he thought most members agreed to the principle of helping the Boldiers. He wished to make it clear that the money would not be used for any‘other purpose until soldiers were Supplied.with the land required. The amount of the loan was £8,000,V)00, fend he thought he saw his way of adding to that another million. The rate of interest would be oi per cent, and though the term oi the loan had not ret been fixed, he thought it would not bo less than ten years, and not more than fifteen. Two and a half millions pf this loan would be set apart for payment of death duties, and judging by previous experience he thought this Bum would ba taken up for this purpose. There were compulsory clauses in the Bill, but these differed from the provisions of previous Bills and would cnly amount to a sum equal to one year’s land and income tax. This was the last compulsory loan, because nothing but war justified compulsion, and as no further war was in sight he thought they could afford not to insist on compulsion in future. Clause 7 instituted a new principle, enabling tho Government to buy back its own debentures if they were being sold on the market at below par. This was regularly done in Britain, and was, he thought, good business. Air Massey then proceeded to read tabulated detailb of Government operations in connection with repatriation and settlement of soldiers. Summing lip these operations, he- said they showed a great record. No other country In the world had done so much for the Boldiers, and he was particularly pleased to say the great majority of the soldiers were doing well. There had been failures, but these rere few and far between. The country was undoubtedly solvent, and he did not think that the threatened commercial depression would affect us, or at least not for long. The whole of the future rested In our handß. What we had to do was to increase production, to bring new lands into productivity, and make cultivated lands produce more. Secondafy industries should be encouraged, but the primary industries must come first, New Zealand world not be a manufacturing oountry for many years, and the most we could hope from secondary industries was that they would supply local requirements for the next quarter of a century. ’ Air Wilford said that no one could doubt the solvency of tho country, because while we had increased our indebtedness to £201,000,000 our private wealth alone would that. He or no one would object to assistance being given to tho soldiers, but the question was whether we were doing fhe best we could with the money we had. He did not think it necessary to put the compulsory clauses into effect, because he believed all the money required would be readily subscribed, so good was tho interest and so good was the investment. 'Hiere was even a possibility of the Government receiving more money than was required, and if $o he recommended the Government to pdopt the suggestion made by Dr Whacker that the surplus should bo handed over to local bodies, whose loan Eroposals might be imperilled by the lore attractive Government proposals. Tho point he wished to make, however, was the failure of tho Government, from want of sympathy, to take land compulsorily for soldiers. Hie Prime Minister was fond of telling the House that ho had made twenty thousand subdivisions in recent years, but when he was aßked how many new settlers had been placed on these subdivisions he could not reply. Air Massey: It is quite impossible to gay. Continuing, Air Wilford said that the whole of tho land purchased for soldiers had been bought by private treaty, and he quoted figures supplied bv the Commissioner of Crown Lands in Canterbury giving excessive prices being asked by owners of land offered to tho Government.

Mr Massey: These prices were not paid. Mr Wijfgrd declared that there were two properties in Wairarapa which belonged to two men without chick or child, and which soldiers were clamouring to have acquired. These estates ought to be taken, and should be taken, through the Public Works Act. The Premier had said that land should be taken compulsorily. He said ho would take it, but he had not done so. No individual should be permitted to hold land to block soldiers’ settlement. It had been the proclaimed policy of the Government, to settle soldiers in the districts from which they camo, but had this been done? It was a crying shame. Land fit for soldiers’ settlement was_ being held just because the owners did not offer it. It ought to be taken compulsorily.

The Hon D. H. Guthrie said the Leader of the Opposition seemed to think that the Government was subdividing land merely for sport. The fact was that they had found homes for 15,000 soldiors. One of the Wairarapa properties referred to by Mr WilTord had been offered to the Government pt a price at which it was a gift, but the'offer had been turned down because the land could not be profitably cut up. •The Minister dofended the Government from criticism of the policy pursued in buying land for soldier settlement. When the men first began to return from the war it was felt that they were not in a oondition to break in now land, and some small areas were, bought to settle them on. That practice,now was ending. H 9 paid a. tribute to the generous assistance given by people in the Wairarapa in placing men on the land. Fifty thousand acres had been bought there, much at about half the market value. On this 184 men were settled. Other parts of Wellington province also had done well and the province had settled moro soldiers on the land tlian any other province. The Minister also detailed the good work done by the Repatriation and Afterrare branches of the Department . in looking after returned men. Applications for finanoial assistance la'telv had decreased. Dp to September .20, 4376 loans for acquiring or establishing businesses had been approved, involving an expenditure of £992,446. A further 9248 men were granted loans for the purchase of furniture, tools, etc., and 3735 received assistance in ether ways. Payments made under all headings on behalf of the men totalled £1,472,512. Failures of men to repay obligations to the Department were very few, only about 5 per cent of the total assisted.

Colonel Mitchell congratulated the Government and country on what had been done for the soldiers, but he urged that every effort ivas needed to get men settled in the country. The balance of the population had drifted to the cities and towns too quickly. Mr Potter contended that tho Government should not ho spending money on ■Uie compulsory acquisition of estates to settle returned soldiers upon while eo much Native and Grown land was lying idle, producing nothing. 1 Mr M'Callum objected to clause 7, which proposed that the Government Bhould become stock jobbers. The proposed power to purchase depreciated stocks was fraught with danger, and in oommittee -he intended to move tho deletion of the clause. He objected to returned men being allowed to become the serfs of mortgagees, which was what would eventuate if the present policy of placing them on such dear land were continued. He protested against tho proposed further aix million loan for soldier settlements. Mv Isifcfc complained that undot tha

present soldier-settlement polioy thero was a tendency for prices of land to be unduly inflated by Government expenditure in purchasing estates. Experienced farmers were afraid that tho effect must eventually be bad and that many soldiers would find it impossible to make a success of land bought at such high prices. It would hay© been better to have acquired portions of large estates compulsorily at, fair prices. Why should young men have to go to the North Island backbloeks and carve out homes under great difficulties, while thero were large estates in Canterbury that could be cut up and become immediately capable of supporting n. largo number of small sottlers? A policy of intensive farming was necessary for tho welfare of this country. Tho debate was continued by Messrs Glenn, Jones, Smith (Waimarino), Harris, Savage and Ha when. At 12.20 a.m. Air Massey rose to reply. Ho deprecated tho policy of taking land by compulsion for settlement purposes, because of the cost and delays caused by the Court’s proceedings. If Ihnd was to be provided for soldiers tho most expeditious method was to pass the taxation Bill now before tho House and impose graduated land tax, and if tho land was in existence it would com© under settlement, but personally he did not know where tho big estates were which some members talked of bo glibly. Hie second reading wa9 agreed to on tho voices. The, House went into committee on theijßill, which was pr.it through in fiveminutos without amendment. It was then road a third time and passed.