SOLDIERS ON THE LAND

Otago Witness, Issue 3581, 31 October 1922, Page 12

SOLDIERS ON THE LAND

DISCHARGED SOLDIERS’ SETTLEMENT REPORT. THE VEAR’S OPERATIONS. (From Our Own Correspondent.) WELLINGTON, October 24. An exhaustive report on discharged soldiers’ settlement for the year was presented to Parliament to-day. A good deal of the information has already been made public by the Minister of Lands, who has all along been most sympathetic, and has worked hard to make the scheme a success. in a financial review it. is stated that the total funds raised for the purpose of the Discharged Soldiers’ Settlement Account, amount to £19,777,680; of this £4,777,680 was borrowed under tlie provisions of the Discharged Soldiers’ Settlement Loans Act, 1920, which authorised the Government to raise a sum not exceeding £6,000,000. The money was obtained ai, varying rates of interest as follows: —£250,000 at 4£ per cent.; £2900 at 5 per cent. ; £4.485,780 at ot. per cent. ; £39.000 at 6 per cent. From tlie inception of the scheme to the close of the year advances were authorised to 20.392 discharged soldiers and totalled £20,409,571. Of this a. sum of £2.467,591 was authorised during the year to 2559 discharged soldiers. It will therefore be seen that, advances have been authorised in excess of the loans raised by £631,891. This was possible by making re-advanccs out of receipts after providing for interest, sinking fund, administration, and other charges. The receipts and payment account discloses that repayments of advances during the year amounted to £553,545 12s, _ or an average of £46,112 per month; while interest and

receipts total £566,501 15s 116, or a n average of £47,192 per month. The average receipts for principal and interest throughout the year were £95.304 per month. For the purpose of comparison the figures showing the repayments of advances and interest for the previous year are shown hereunder :—Principal, 1921-22, £553,345; 192021, £726,172; "interest, 1921-22, £566,501, 1920-21, £434.802. It will be seen that the receipts for the year are slightly Je?s than for the previous year. The average receipts per month for the year ended March 31, 1921, were £96,747, or £3446 per month greater than the receipts for the year ended March 31. 1922. To some extent the financial stringency influenced receipts in so far as fewer mortgages were redeemed during the year. Dealing with the revenue account, it is seen that the loss on the year’s operations amounted to £55,580 19s lid. but there was a balance of profit carried forward from the previous year of £12.226 7s 3d. which leaves a net loss of £45.154 12s 8d carried forward. When the loss is viewed from the standpoint of tne number of men who have been repatriated by the department under the Discharged Soldiers’Settlement Act it •will be seen that the cost per man amounts to only £2 2s 4d. and in this light it cannot be said that the loss is unreasonable. If the country is enabled to repatriate at this small cost, it is indeed fortunate. In any case, the losses can hardly be avoided. The last loan (of which £4,777,680 had been, raised) was borrowed at rates of interest varying from 4i per cent. to 6 per cent., and the rate of interest charged on instalment mortgages is 5 per cent., reducible to 4§ per cent, for prompt payment. It will be seen that this leaves no margin to cover administration expenses, depreciation, and losses, which must arise. As a matter of fact, over £4,500,000 of the loan has been raised at 5£ per cent, and over On this portion of the loan the Discharged Soldiers’ Settlement Account must lose from J- per cent, to 1 per cent., always according to whether investments are on current- account or instalment mortgage, and payments on the latter are made to ensure a rebate being granted on interest at 5 per cent,, reducible to 4i per cent, for prompt payment. The balance sheet shows that the amount outstanding on mortgage was £18,113.156 3s lid, to which must be added the instalments of principal in arrear, £54,492 16s 9d, and the instalments of principal postponed, £3980 16s Bd, making a total of £18,171,629 17s 4d. Postponements of instalments of principal and interest in force amounted to £26,470 Is Bd, while arrears totalled £385,844 12s 6d. On the question of the settler’s present difficulties, ihe report state: that with regard to the men who upon examination appeared to the Land Hoards to be experienced in farming, but whose subsequent farming methods proved them inexperienced, the majority have now purchased their experience largely by the unprofitable _ investment of capital. This, combined with the low prices of farm produce, has placed them in the position they now find themselves, but those men who are now proving their worth by the adoption of more improved farm methods deserve every encouragement and assistance. In their case arrears have mounted up, and relief should be afforded, but not by means of capitalisation, unless the land can possibly stand such. It is submitted that the operation on the Discharged Soldiers’ Settlement Account for the year under review can be regarded as satisfactory. Tlie markets were, of course, in a state of chaos for practically the whole year, affecting not only discharged soldiers but the general farming community ; and it is only to be expected that the arrears due by mortgagors would be large. However, the losses which have been disclosed, arc considered to be small, when it is remembered that practically £20,000,000 is involved. An appendix to tlie departmental report on soldiers' settlement gives separate reports in regard to various districts. That for Otago, by Mr Sadd, is as follows: PROSPECTS IN OTAGO'. During the year the demand for land by discharged soldiers has decreased to a very great extent, owing partly to the wants of the soldiers being satisfied, and partly to the difficulty of obtaining finance other than that provided by the Government. The drop in the price of wool and stock iri the early part of the year, and afterwards the fall in the price of butter-fat has evidently deterred the selection of land. The price of wool and sheep has now risen to some extent, and the p-rospects of pastoralisls have much improved, so that there is a good prospect of the pastoral lands now subdivided and held back being selected at the end of next season. Settlements containing 3400 acres were opened, during the year, and a few more of . the sections on settlements previously offered and not selected have been taken up. The bad harvesting weather experienced in March will seriously affect some of the settlers. A few of the settlers who acquired farms under section 2 of the 1917 Act are not doing well, and it is apparent that steps will have to be taken t-o effect a. transfer to another soldier, or realise on the security. As the loans on instalment mortgage in most cases are well under the value of the. property, there should not be a loss in offering for sale or lease, but probably a sale of stock, eic., held under current account mortgage will result in a loss. Arrears have increased on rural properties and current accounts, and it seems unlikely that many of the farmers will be able to meet their obligations this season. It is desirable to give these men every encouragement. to retain their holdings, and the provisions of section 16 of ‘The Discharged Soldiers’ Settlement Amendment Act, 192122, will enable considerable relief to be given. The inspector of securities is attending to his duties in a most efficient manner, but. owing to a good deal of unemployment in the district a few have got into arrear. Meat of these are making every effort to meet their obligations, bur in three cases it will he necessary to have the properties sold, and the arrears paid off. During the year 38 mortgagors have repaid the whole of their advances, and 50 properties have been transferred to other returned soldiers. Postponements of payments have been discouraged as much as possible, and only four exceptional cases have been recommended. Mortgagors are being encouraged to reduce their arrears by small weekly payments. The dwelling securities arc being kept in excellent order, the soldiers taking a. pride in improving their properties in their leisure hours. SOUTHLAND. Mr T. Brook in his report on Southland settlement states that the first men to return showed a marked preference for pastoral lands. The prosperous state of the sheepfarming industry at that time being a. great attraction. That kind of farming

offered a freer life than did any other kind—a life more alluring to men who had participated m the war. In Southland there was but little available land to meet the demand referred l to. Agricultural farming and dairying comprise the great part of the whole cf this district’s rural activities. Steady progress in these kinds of farming has been made during the year, and the future prospects can bo viewed with optimism. In regard to dairying, he says, although feed has been so plentiful, it” is doubtful if the yield of butter-fat has kept pace with it. The soldiers found it difficult to get cows at the beginning of the season, and impossible to get good breeds. The prices, too, rose very high. It will take some time, of course, to get together herds for soldier settlers which can be relied upon to produce the best results. Now that dairy produce has hardened on the London market many of the soldiers should receive a substantial bonus in a few months’ time. So far as Southland is concerned, th prospects of the soldiers who have settled on the land are most promising. Clearing, burning, grassing, fencing, and building have been pushed on vigorously. Failures there have been, and will be. Given reasonable prices and fair weather conditions the soldiers on tho land in Southland should become prominent and prosperous farmers.