PREMIER FORECASTS REDUCED INTEREST RATE FOR SETTLERS

Manawatu Times, Volume LIV, Issue 6902, 7 May 1929, Page 6

PREMIER FORECASTS REDUCED INTEREST RATE FOR SETTLERS

Eventually 41 per cent DEBT CONVERSIONS TIGHTEN THE MARKET ALL ARREARS OVERTAKEN Per Press Association. NEW PLYMOUTH, Last Night. A reduction in the near future of the rate of advances to settlers from five and a half per cent, to five per cent, and later from five to four anil a half per cent, was forecasted by tho Prime Minister to-night in dealing at a civic reception iii New Plymouth with the Government’s financial policy. Sir Joseph Ward said it was evident that tho country still wanted much capital for land development and tha intention was to push steadily on with the project of obtaining £00,000,000 ovor a period of yc-ars and making thp money available for settlement at the cheapest possible interest. While tho Government was still pursuing its election policy of lending money, to settlers, he hoped beforo long the rate of interest would be reduced to 5 per cent, and later to 4& per cent.

Had it not been for the misfortune of such a large sum of public debt requiring conversion, whon the United Party came into power, money would havo been lent out at 4i per cent from the start. The sum of £1,706,000 was available at the present time at 5J per cent to settlers who had security and had their valuation fixed up. During the 12 months prior to the present Government’s coming into power, £BOO,OOO was advanced to settlors and workers but arrears of applications amounted to many millions. During the past fortnight, it had been disclosed to him that all those arrears were now overtaken.