STATE DEPARTMENT LOANS.

New Zealand Herald, Volume LXI, Issue 18710, 16 May 1924, Page 11

STATE DEPARTMENT LOANS.

_a* X HOUSING AND MORATORIUM.

<<NO BOOMS IN DOMINION."

LENDING TO BE CONTINUED.

THE HOUSING SHORTAGE.

JB* TELEGRAPH. ASSOCIATION.] WELLINGTON. Thursday.

"I am not going to have any booms hero while I am about. That sort of thing is no good to anybody" said Mr. Massey to-day to » deputation of local Labour members, which waited on him and urged that more facilities bo provided to obtain loans for houses under the State advances schemes, and to request that the moratorium (which expires at the end of this year) be lifted gradually, so as to avoid unuue hardships.

The deputation comprised Messrs. P Frascr, A. L. Monteith and 11. McKeen. M.r.'s.

In replying, Mr Massey quoted the latest figures as to the amount which had been advanced from the Advances Office. During Hie last financial year, and perhaps including part of April of this financial year, there had been lent to 7743 borrowers £6,639,241.

Lending Too Fast. "I say at once that you cannot keep that up. and if you attempt to go mora rapidly than that, down conies the credit of the country, and you are up against it. I speak of what i know. As a matter of fact that rate cannot be maintained. It was too- fast; too much money was going out, and a boom being created." Mr. Monteith said the Advances Office was not lending money at such a rate to-day as it had been in the past, and communications to the department were answered in a stereotyped manner. The deputation realised that he (Mr. Massey) wanted to build more houses. So far as the moratorium was concerned the position was that loan companies were charging \ery high rates. Even when really good security was being offored as much as 8 per cent, and 9 per can*. interest was being asked, but some peoplo were in the position of not being abl» to finance at all. It was asked, therefore, that the moratorium should bo lifted bv degrees, and that more money ha put into "the State Advances Department to help the housing position, which was becoming more acute by reason of immigration.

Acute Housing Shortage. Mr. McKeen said the position to-day was more serious than it had ever been. People who had put in applications for loans last August were being told thev would have to wait their turn. The Act, . which had been lauded as a solution of the housing problem, was not satisfying the demand. " Owing to acute housing we have the unscrupulous landlord still," remarked Mr. McKeen, "in spite, of. your rent restricting legislation, and he is trying to get people to consent to excessive capital values being placed on their properties." He mentioned the case of a man who wanted £1400 for two houses, of which the Government valuation was £540. Three years ago the rent charged for these two houses was 15s a week» hut now the landlord was getting tenants to agree to £2 2s. These people had no alternative but to pay or else go into rooms at 255, 30s, or £2 per week. A compliment to the administration of the State Advances Department was paid . by Mr. Fraser, who said he thought that the department had thrown its heart and eoul into the new scheme, which was undoubtedly a gool one and had been administered very well. In spite of what had been done, however, the demand for houses was so acute that cases of the type quoted by Mr. McKeen were common.

Lending to Continue. In reply to Mr. Fraser, Mr. Massey said that at the moment he could not say how much of the sum of £6,639,241 advanced was for The question of security had to be considered. What had' been done already by the department must have done a lot of good, and he was glad to hear'what Mr. Fraser had said on the point, but the same rate of advances could not be kept tin. "This year there will be probably £3,000,000 made available for •State advances, and that is as far as they can go. That has never been done before. No one ever dreamt of lending between £6,0000,000 and £7 000.000 in one year." Mr. Monteith : Of course the prices of land and building have never been at this point before. Mr. Massey: The lending of so much money put up the price of Duilding and the price of land in the centres. Mr. Fraser: I think in fairness to the department it should be said that it took every step to prevent that several tinm>. Contracts have been sent back to get a better price. They did what they could to prevent it. Mr. Massey: There it is. The thing is rot going to stop, but I am going to tickle ud your ears before we go any further. We are going to go on lending. The canital of the department is now about £21,000,000, that is over a series of years. That has not been done in the last two three years. A great deal of nonsense has been spoken about the department. " I saw the other dav that a politician ■had said that we borrowed £2,000,000 or £3,000,000 and did not repay it. That ■was absolute nonsense. That was piled up when people were not quite certain who was going to win the war. There was. a period like that when building practically stopped, and the department was getting no applications for money. They were not going to keep money idle, and it . was temporarily invested, and properly so, but it has all been used up long ago. , "We are going to do our best," continued Mr. Massey, "but I am not misleading you when I tell you we cannot do- the impossible. We are not going to buy houses already erected under a 85 per cent, scheme." Mr. Frnser: We cordially endorse that.

Action in Urgent Cases. Mr. Massey mentioned that sometimes there werp urgent cases where houses had to he nought, and in this connection he spoke of a case where a man_.with 11 children was to he turned out and the house sold. " I could not imagine that tfuch a man was to be allowed to go Put," said Mr. Massey, " and we authorised the purchase of' that house. The amount involved was £600. Mr. Fraser: That is all right. Any decent man would support that Speaking of the moratorium, Mr. Massey stated that the position was nothing like it was six or nine . months >sro. There would he practically no difficulty in • the case of loans under £3500, because the department had taken pp most of them. "I am not going to bilk definite]v," said Mr. Massey, "because this is a matter Cabinet has to consider prior to the meeting of Parliament, end I do not want to make things more difficult than they are. I think, however, that the public will find that My inoratorinm position will not be so seri»us as is' imagined." In the case of big loans, £20.000 and upwards, there might he a certain amount of difficulty, but Sir. Massey' said he thought these would be "adjusted before, the end of the monitorium. The policy being followed by the department would have u very steadying effect on boom prices, said Mr. WaddelJ. The department Had never ceased to pay Dut or to consider applications for loans. In conclusion Mr. Massey remarked that during last April £433,555 was paid >ver to 451 Iwrrowers by the State .advances Department.

The frequent inhalation of Nazol> by Hie mouth and nose effectually checks md destroys the power of infectious jerros which produce sore throat, hoStee>ess. running at the nose, watery , ej\is. Soughs and bronchitis. fi