ADVANCES TO SETTLERS.

Otago Daily Times, Issue 15301, 15 November 1911, Page 9

ADVANCES TO SETTLERS.

TO THE EDITOR. Sin,—ln his gp«ech at WintonSlr J. 0. Ward said that tho Advunces to Settlors Department had lent £11,648,000 and had earned £456,155. For whom had it earned this money? Tho answer is, for tho English money lender. That is the evil effect of tlie system. Tho fruita of tlra eoil an which the money is lent nro going into the jwjkets of tho KngliiJi money-lender in the ftlmpo of interest, never more to bo of the slightest benefit to this country. If tho money had been locally borrowed tho interest would have remained in tho country, tho nceumulivtion of our wealth would bo proportionately increased, and would thus be available l"r lending out, and thus eventually borrowing would bo obviated. But this system fiends the natural increase of our money out, of the country, and leaves us poor indeod. Tho act was passed in 1994, and during the next 12 years only £4,922,630 had Iwen lent (page 430. Year Book, 1906). That indicates that the original intention waa not to go into the wholesale money-' lending busincw, but to tito tho act n>* A means of keeping the rate of interest within * reasonable limits. Sir J. G. WaTtl now tells us that tho amount already lent is nearly £12,000,000, .uid further authority h.W been gi\«m to increase this to over £13,000,000. Thus in five yooTs Sir J. G. Ward has lent about £8.000,000, on against Ipm than £5,000,000 lent bv his predecessors in 12 years. The result is that this has incroawd the value of land inordinately, ami that consequently land for Battlement cannot bo bought at "a prico which would givo the settlers a living wage. Sir J. G. Wird is tlwrefore ruining th'o chances of those who want to sottle on the land by lending cheap money wholeeale, and thus nuking the land too dear. With the Advances to Settles Act Sir J. (i. Ward is.mining tho kind for Settlements Act. l'roof of this can be found at page 572 of tho Year Book, 1910. There you will sec that in 1906, when Sir J. G. Ward took office, 154 holdings, containing 36,698 acres, were thrown tin and forfeited by tlie settlers, while last year 315 holdings, containing 118,142 acros, were forfeited. Thus the. result of borrowing £19,000,000 in five year* is that twice as many people threw up their lands, presumably bccauao it was too dear.

This is something to think about. Whom does this cheap money and dear land benefit? Is it any good to the man who ■rants to buy land and mako a homo for himself? Certainly riot. Is it any pood to those who want to mako homes for themselves under the land for settlement schemc? Certainly not. Tho only persons who can benefit are thoso who buy and sell land, nnd those who have land for sale, Shr J. 0. Ward is playing into their hands splendidly, and destroying tho chances 0! the land for settlement

flVfltem. The net results therefor® are; (1) Th) country is being depicted of its natural increuo of money, which Icavw it 111 the «lupe of interest; (2) there beint; no incroaeo, tto fhall always bo poor; (3) cheap money is making dear land; (4) the land is too dear to buy for settlement. If a fall in prices should take placs many land-owners who > Irnvo bought dear land would bo ruined.— I am, etc., John Gitrfo.