STATE GUARANTEED ADVANCES.

Marlborough Express, Volume XLIV, Issue 74, 4 April 1910, Page 6

STATE GUARANTEED ADVANCES.

SCOPE OF THE SYSTEM.

In a brief interview with a Christchurch Presfe reporter on Tuesday, the Prime Minister replied to recent criticisms of the work done by the State-guaranteed Advances Board. H© said that at one sitting the Board had guaranteed loans aggregating £612 ; 000 for local public bodies throughout the country. This was a record amount, but apparently some Seople thought that it should be oubled or quadrupled. The people who argued anything of the kind must possess a very limited comprehension of the responsibilities attach-

ing to a huge financial operation of this kind. "At no time in the previous history of the Dominion," said Sir Joseph, "has the amount for advances to local public bodies exceeded, or even touched, £200,000 in one year. The fact that at the first meeting of the Board three times that amount has been authorised, and with the certainty that local bodies will require and obtain further large sums within the next six months, conveys on the face of it an answer to this criticism. Anyone who is not prejudiced.or wilfully blind, to the immense services such an institution will render cannot do other than recognisa that already the vitality of the advances made to local bodies has been emphasised in the most practical way that is possible. Eighteen months ago numbers of local bodies were trying to obtain loans at rates up to 6 per cent., in some cases over that, and in many instances without success. Under the authority of the Act which Parliament put on the Statute Book last session the legitimate requirements of local public bodies throughout the Dominion can.be fully met. In some instances applications have been made for loans for what one can only term extraneous purposes, and naturally the administering board had to discriminate, with a view of utilising the funds for urgent and practicaly requirements. Loans for what may be termed luxuries must of necessity take second place. The loans are given for such necessary works as drainage, water supply, sanitation, roads, bridges—the practical necessities of the people. Some applications wero sent in for loans for the purposes of erecting municipal theatres, installing electric light, and constructing electric tramways- All of these are proper matters for a local body to take up, and I do not wish to say anything against this class of work, as the rates would be a good security for advances. But the works are more in tbo shape of local luxuries and conveniences than the roads, bridges, and drainage works which are urgently required. The total applications for loans (amounted to £1,400,000, and preference had to be given to the necessary works I have alluded to."