LOANS TO SOLDIERS.

Marlborough Express, Volume LIIII, Issue 81, 7 April 1920, Page 3

LOANS TO SOLDIERS.

THE RATE OF INTEREST,

REDUCTION BEING EFFECTED.

The fact that the. rate of intteresfc charged iipon loans under the Discharged Soldiers}' Settlement Act is higher than that applying to the other Government Loans Acts was recently brought before the notice of the Primo'Minister by the New Zealand Returned Soldiers' A&sociaticn.

The association

forwarded, to Mr

Massoy a table showing the rate of mtereyb payable under the various Government Acts in comparison with that attached to the D'.S.S. Act. Under the Housing Act interest is charged at the* rate of A\ per cent, lor prompt payment every six months; under the State Advances to Settlors Act interest is charged at 6 por cent., with 2 per cent, rebate for prompt, payment hnd 1 per cent, sinking fund!, a basis oi: 4& per cent, under tho D.S.S. Act, the rate is o por cent., with a 2 pei- cent, sinking fund and no rebate. The association asked tho Prim© Minister to explain why interest- under the DJ3.S. Act was placed at a liigher a-a.te than that placed upon loans under the Housing Act, the money for which had1 jusfc been appropriated. The Secretary to the Treasury has replied that in January last provision was made for a retrospective reduction of \ per -cent, in the rate of interest payable on advances made under the* D'.S.S. scheme, and that the question of readjustment is now being dealt with by (the Lands Department. The Under-Sccretary for the Lands Department has also notified that as foon as the neoossa-iy regulations have been issued .a rebate of onetenth of the amount of interest contained in the instalments payable on loans will bo granted for prompt payment, so .is to make the system f-imiiar to that in force in the State Advances Office. In addition, provision would be made SO' that the rebate, mig.hu be applied retrospectively to all payments which, were made in advance, or within fourteen days ai'tor the due date