DEMAND FOR STATE LOANS.

New Zealand Herald, Volume LXI, Issue 18657, 13 March 1924, Page 6

DEMAND FOR STATE LOANS.

FLOOD OF APPLICATIONS. AMOUNT GRANTED, £5,306,982. THOUSANDS TO CONSIDER. I "MUST SLOW DOWN." CAPITAL RESOURCES LIMITED. [BX TJIIKOEAPH.— PRESS association. "WELLINGTON. Weilne«rtßT The following statement: was made by the Prune Minister to-day regarding the operations of the State Advances Department. # When applications are received, the first! thing done With them is to refer them to the Valuation Department so that the value of. securities offered may be reported upon. The report is referred to the board seC up under the Advances Act who consider each report exhaustively and recommend accordingly to the Superintendent of the State Advances Department, with whom responsibility for granting a loan or any part I rests. .!■■■ Up to March 6 there have been granted, ! during the present financial year, loans to 6358 "Borrowers amounting to £5,306,'582. There are still a large number of loans authorised; where the amounts have not yet been paid over, and behind the latter, some thousands of applications waiting to be dealt with. Applications for loans will be dealt with in the order in which Chey have been received bat the department has sufficient applications on hand to oocupy its attention for some months. The object of the Amending Act of last year was:—(l) To assist settlers who, ! though possessing sufficient security* had difficulty in obtaining the loan money they required to enable them to develop their holdings; (2) to assist workers to becomti the owners of their own homes; and (3) to make as much provision as possible for the term of the moratorium ! coming to an end nexi • December. I think it must be admitted that a very great deal'has been done to comply with these objects and the department will carry on, but it must be obvious Chat the present rate of lending cannot be maintained. For more than one reason, the Government will not be a party to creating anything in the way of & boom and there is a tendency in that way at present. ... We have enough money to go on . with for some time but I have already stated that the financial outlook is not good , and money in large sums is much, more difficult to obtain than was the case even six months ago. The public scarcely need to be ) told that lending must b§, in proportion to the supply of capital and, taking the facts I have mentioned into consideration, the department must slow down until the present arrears have been overtaken. . When thathas been done fresh applications will be entertained. I may point out that from ; the additional capital which has been lent out recently i Che re will be a considerable amount of I money coming in from repayments • and ! interest which will be re-lent! to those requiring borrowed capital for the purposes mentioned in the- Act. The latter will of oOurse be supplementary & the moneys which we have; in hand and any other moneys Which may' from time to time be raised for 'lending purposes. •<