REPAYMENTS.

Northern Advocate, 3 December 1921, Page 2

REPAYMENTS.

OF SOLDIERS' LOANS,

MAY BE USED TO SETTLE CROWN LANDS.

<l A matter for determination by the Government and Parliament of Now Zealand is the investment or other disposal of principal moneys that have been or will be repaid by the discharged soldiers to whom they have been advanced," states the latest annual report on discharged soldiers' settlement. '' The funds that have hitherto been provided by the Government are of two kinds—namely, appropriations from the Consolidated Fund and loan moneys. The latter have to toe repaid by means of sinking funds and' otherwise iu accordance with the provisions of the Acts under which they were raised, but the money provided .out of accumulated surpluses of the consolidated revenue can be disposed of as is directed by the Government and Parliament. Roughly speaking, it may ■be scia that £6,000,000 has been raised front loans, and will require to be repaid in order to reduce and defray the liability now resting on the taxpayers, whilst some £13,000,000 is availajble for reinvestment. "One method of reinvestment is to follow on the. lines authorised to the Public Trust Office, the Government Life Insurance Department, or other State Department with accumulated funds. Another way is to follow on the lines of the State Advances Office, but with modifications suited to the developmental needs of the country. The money has been advanced not only on first mortgage (as by the State Advances Office), but also in some oases on second mortgage, and in a large number of cases on bills of sales. Moreover the State Advances Office has a statutory limit fixed in the wnv of mar- I

gin, the loan not being permitted to exceed tliree-iifths of the value of the land and one-half the value of buildings on the land. Under the Discharged Soldiers' Settlement Act no margin is prescribed, and to enable discharged soldiers with funds to settle themselves on thy land advances liavo been frequently made up to the full value of the land purchased, and additional funds provided for the purchase of .stock, implements, etc. Now that the needs of 1 lie greater part. of the large body of returned soldiers have been met it may be n<l visible to establish a new system of advances to meet the requirements of the coming generation of farmers, and for this purpose it may be deemed advisable to pass legislation to enable moneys that have been repaid under the Discharged Soldier.-' Settlement Act to be rcadvanced to eligible applicants taking up Crown lands for development purposes, and undti' conditions that satisfactorily safeguard the funds."