LOAN FUND.

New Zealand Gazette and Wellington Spectator, Volume IV, Issue 306, 13 December 1843, Page 3

LOAN FUND.

The supply of capital to the Settlers for a different period to that adopted, as the custom of banks, has often been urged through our columns upon the proper parties, and has been most ably advocated by our friend Mr. Chapman in the New Zealand Journal and the New Zealand Port/olio. It might, indeed, be easily shewn that, in commencing a new settlement, it is a Loan Fund Company that it needed, and not a Bank. Production is the great object of a new settlement — and the former institution is the fitting instrument with which to accomplish that end, while the latter, up reflection, it will be found has consumption rather than production for its object ; by its short credits it aids distribution of what is created ; but as all has to be created, and it only gives increased facility to consumption, that power is Necessarily expended upon imported commodities, the consumption ofwhich never has and never will need, encouragement in new settlements. We understand that this pressing want of new settlements has been recognised by the friends of this Colony in London, and that a ■ fear of the Colony not being able to give a Loan Fund Company sufficient business to support its expences alone prevented our having received timely assistance. It would appear that the expences of such an institutions have been much over stated. There are three persons needed to cause this simple institution to be properly managed. The party to loan the funds ; a person to estimate the value of the property upon which a mortgage is sought, and a legal person to draw the necessary documents. The first named party would have to be paid by the Loan Fund Company, the other two parties would have to be paid by the applicants. The Bank now established might be called on to perform the act of loaning, and securing the deeds held for the Society, and we think, would willingly do so for a moderate remuneration, as the introduction of capital to this Colony, for reproductive purposes, could not fail both to add value to the class of securities held by the bank for its own business purpose, and to extend its business, both important objects with such an institution. A little reflection ough.t to have made the parties feel, that the business expenditure of a Loan Fund Company, may be made very small, and that if satisfied that it was wise to advance capital to the Colony, this part ought not to have' proved so successful an obstacle to rendering the settlers an essential service, and making money securely while assisting.