LOANS FROM THE STATE

New Zealand Herald, Volume LX, Issue 18577, 8 December 1923, Page 12

LOANS FROM THE STATE

HALF A MILLION A MONTH.

FIVE MILLIONS FOR YEAR.

HOMES AND OTHER OBJECTS.

[BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON. Friday. . In a statement regarding the progress of the State Advances Department ill regard to loans for housing and other purposes, the Acting-Minister for -finance (the Hon. Dowriie Stewart) stated to-day •that the figure® to the end of November showed that astonishing work was being done by the department. Money was being paid out at the rate of over half a million a month. Since last April, practically £3,600,000 had been paid out. While £2,380,000 had been advanced for the whole of the last financial year, he fully anticipated that for the current year the total loans will approximate £5,000,000. , . 4 The figures showed, said the Minister, that for the specific purpose of erecting homes for workers since the new Act was passed the sum of £516,925 had been authorised, as against £337,570 last year. For the purchase of homes, the amount actually paid over during the same four months was £501.110, of which £296,950 was for the erection of homes, and £204,160 for the purchase of homes. This disparity was increasing each month. The average loan made by the department for the erection ot each worker s homo was £759, which was evidence of the caro being exercised to prevent undue inflation both in land and buildings since the increased lending facilities were granted. The total amount pa.id over during the ' last eight months „ for the erection and purchase of homes, and to repav existing mortgages, amounted to £2,315,554. Over £42,000 had been lent to local bodies for erecting workers' dwellings. ' . , , . Evidence of the assistance rendered to those borrowers who are paying high rates of interest on their loans was, said tho Minister, afforded by the, fact that £1,325,350 had been advanced for repaying existing mortgages. The provision for loans on chattel security was also being availed of, and £32,660 had been advanced for this purpose. 44 These figures," he added, " furnish eloquent testimony to the vigorous manner in which the policy laid down by the Act is being carried out, and I receive frequent testimony to the splendid work being done by the department."