LANDS FOR SETTLEMENT.

Otago Witness, Issue 2905, 17 November 1909, Page 13

LANDS FOR SETTLEMENT.

Five estates were finally acquired and oi/ined for close (settlement during the past year at a oost, with incidental expenses, of £383,426. Up to March 31, 1909, 1,195,292 acres were purchased at a cost of £5,136,999, with a further expenditure of £452,682 for expenses incidental to the acquisition and subdivision into smaller farms and construction of new roads Rents, etc., received have amounted to £1,710,012. and interest paid to £1,331,980 for the whole period — a satisfactory financial lesult, especially as it is obtained from a pror-css of closer settlement which has in itself proved so beneficial in other ways. The demand for these lands continues unabated, but it must be remembared that, apart from the cost, the extent of land suitable by quality and position for close settlement is not plentiful The market for rural lands hes for some time past bean somewhat inflated, and especially so in the case of suburban areas, and owners in many cases are still making excessive values, rendering purchases difficult to negotiate, as the future of the settlements depends upon the rents being reasonable.

ADVANCES TO SETTLERS. This eminently serviceable and profitable department continues its success. Aboat 28,000 settlers and workers have received assistance amounting to £9,810,725. The average amount of the advances now outstanding is £390 for the settlers and £251 for the workers. The total amount of the advances for the combined departments durin<* tho year amounted to the record sum of £1,792.010, and this average bas been maintained throughout the year. Four years ago the total amount of advances tnade during the year was £100,000. Tho department advanced during tbe year in the settlers' office alone £1,521,409— an excess over the previous year of over a quarter of a million. It is difficult to conceive what would have been the state of things during the past 12 months if the Advances to Settlers Depaii;ment had not been in existence. Owing to the financial depression throughout tho world the pinch ha? been felt in New Zealand, but it would have been positively disastrous had not this department been able to grapple with the emergency as it did. At the same time, as evidence of the advantage of obtaining assistants at low rates of interest, the instalments of principal and interest have been met with tin usuaJ promptitude, the str'ngenoy of tho money market havng apparently not affected the ability of mortgagors to meet their instalment payments to any noticeable extent — sufficient proof of the value of the department affording relief in times of depression. The repayments to the department from all bourco^ totalled £802,980. Thsis show a steady ncreasa as a result of the larger amount of money that is being advanced annually, but a oonriderabls reduction has taken -lace in the amount of mortgages lepaid in full or in part this yctu- cornpa rod with fo'mer year-, and it will be observed that Ihe claim* made on the do paitmcnt have grown unexpectedly quif» out of rioiK-i'tion to the moneys repaid. Thn will. howe\er adjust 'bszlt when money becomes easier. Therefore, jt is cloar that unless the benefits and advantages to be derived from the department are to be denied to numbers of deserving fcettlers and workers who are des>irou6 of obtaining advances, at a low rate of interest at a minimum of cost the borrowing powers of the depeitment must be maintained, and I have already placed before the House proposals to enable this to be enacted