SOLDIERS' LAND

New Zealand Times, Volume XLIX, Issue 11306, 4 September 1922, Page 5

SOLDIERS' LAND

ACCUMULATED SURPLUSES ’’NOT SUCH A BAD BARGAIN AFTER ALL.” “FICTITIOUS VALUE OF LAND.” The Government had been accused of a bad business transaction in investing the accumulated surpluses of approximatelj’ ltj millions tn land *? r 6ol<3iers, stated the Pi’ixne winding-up the Budget debate, liie surpluses were invested at 4 per cent - in London, and the Government had to choose between using the money, going on the London market for money, or letting the soldiers go . without land. At the time, however, it was almost impossible to borrow money in London. Advertisements were appearing in nearly every paper in England asking for money and offering 10 per cent, interest on undoubted security; and before the Dominions could bborrow they had to get the consent of the Imperial Exchequer, which was almost, impossible. Mouey could not be borrowed at'that time (1917) -under 7 per cent.; so tho Government took the accumulated surpluses, which cost them practically 4 per cent., aud saved thereby 3 per cent. Mr, G, "Witty (Rieoai^on): No; there was no saving. You created a fictitious value of land. Mr Massey: That has nothing to do with it. I am glad to think that the -soldiers are beginning to realise that they had not made suoh a bad bargain after all. At the last gathering of the Karmens’ Union, he added, a resolution had been "passed congratulating the Government,-on the good treatment the returned soldiers had received at its hands, and putting on record the union’s admiration of the excellent way in which the returned soldiers had'made good under adverse circumstances. The financial position of a number of the soldiers constituted a. diffioult problem to solve; bu,t he thought that the Minister for Lands (the Hon. D. : H. Guthrie) was in a, fair way to solve it, unless he was harassed by politicians for electioneering purposes. (Liberal laughter..) Mr Witty: Do you think that is a fair thing to say Mr Massey: I don’t want the hon. gentleman to fit the cap on. (Laughter.) Mr If. A. Veitch (Wanganui): You have had a fair run. (Hear, hear.).