STATE ADVANCES.

Otago Witness, Issue 3672, 29 July 1924, Page 8

STATE ADVANCES.

LOANS CONSTITUTE A RECORD. In bis references to the State Advances Office in the Financial Statement Mr Massey says:— Tlie capital of the State Advances Office was increased by £3,114,750 in 1923-24, and since March 31, 1924, a further £2,300,000 has been borrowed, making' the total capital of the department at June 30, 1924, to be £24,4£3,525. Seven thousand twohundred and ninety-two applicants received loans amounting to £6,205,686 in 1923-24. This constitutes a record since the State Advances Act was passed in 1894-, and affords ample evidence of the assistance rendered to settlers and workers. Phe Amendment Act of last session authorises loans to workers up to £51250 and to settlers up to £5500. To a worker desirous of purchasing a dwelling-house an advance not exceeding 95 per cent, of the value of the security, in lieu of 75 per cent., was authorised, whilst to a worker electing to purchase a section and erect a dwelling-house, authority was given to advance not exceeding 95 per cent, of the cost of the land, building, and improvements. Authority was given to advance to settlers 75 per cent, of the value of the security, in lieu of 60 per cent. Ihe new business for tne year was as follows :

Totals 16,825 £9,926,710 •For the purpose of assisting borrowers to repay mortgages a considerable sum has "T?! 1 advanced. Since the month of October, 1a22, when it was decided to entertain sucb ?c*n ICa^I< i ns ’ l° an,s have been granted to 5549 applicants, amounting to £3,584,205. Amoiunbs advanced by the department during the following financial years Year , ending T *

T'he following advances were made for the three months ended 30th June, 1924: Settlers £ 561,350 Workers 475,360 J-ocal authorities 69,925 Totill ••• £1,106.635 The temporary investment by the State Office of floating cash balances, which for the time being could not be profitably employed, has been authorised by the different Finance Ministers since 1896. The object is a perfectly sound one. The State Advances Office, having moneys not immediately issuable, temporarily invests them and realises the securities as cash is required. This is precisely what happened during the war period, when labour ai d material were not available. The ir ■> estments outstanding at the end of 1919-20 were, during the period of reconstruction, speedily converted into cash for advances to local authorities, settlers, and vorkers, end by the end of 1923-24 had been wholly realised. These transactions ure in no way connected with the new capital, £2,600.000, provided during 1923-24. From 1914-15 and onwards a large portion of these temporary investments was held in Imperial securities, the total holding of wliioh in 1917-18 was £1,409,794. HOUSING. The housing shortage which has prevailed for some years, particularly in those urban areas where the increase in dwellings hag not kept pace with tho increase in population, has received the fullest possible consideration. The following tables indicate the large sums of money that were made available for the erection and purchase of homes during the financial year 1923 24 Purchase of Houses. Number. Amount. State advances 2,251 £1,526,207 Discharged soldiers 12 5,765 Railways 3 1,624 Totals 2,266 £1,533,796 In addition, £66,010 was paid over to 41 local bodies for housing. The following statement shows the State assistance towards the erection and purchase of dwellings from the Ist April, 1919, to the 31st March, 1924: Number of Houses. Amount. State advances* 14,815 £8,316,087 Discharged soldiers (urban areas) 11,341 8,253,311 Discharged soldiers (farm properties) 3,863 1,126,000 Railways 276 289,314 Public Works Department (State employees) 164 158,099 To local authorities Totals 30,459 £18,720,006 •Excluding amounts advanced to release mortgages on house property. In addition, considerable sums, approximating £13,000,000, were advanced by way of mortgage during the same period by Government lending departments vis., State Advance?, £5,000,000; Public Trustee, £7,000,000; and other lending departments, £l,ooo,ooo—some proportion of which total was required either to oamplete buildings in course of erection or to purchase others recently erected, the cost of whioh had been temporarily financed in anticipation of • Government loan

Number Amount Loans granted to settlers 6,194 Loans granted to workers 3 260 £5,416,987 2,204.410 Loans granted to local Authorities 194 444,805 Totals 9,648 £8,066,202 For the purpose of building' houses and acquiring homes a large sum has : been advanced during- the last five years. The fob lowing is a table of the loans authorised Irom April 1, 1919, to March 31, 1924:— Amount hor housing purposes— To settlers 5 778 £3.193.143 lo workers 9,037 5,122,944 I o release mortgages on house properties— io settlers 2.010 ©reot workers’ dwellings— £1,033,428 To local authorities ... 577,195

31st March. To Settlers. To Workers. Ix>oal Authrts. Total 1914 1915 1916 1917 1918 £ 978,395 1,136,475 £ 272,860 313,025 £ 324,150 336,295 £ 1,575,405 1,785,795 814,555 275,680 285,410 1,376,645 367,160 214,965 125,855 152,310 128,150 957,250 1920 1921 350,140 87,590 130,575 568,305 808,180 225,055 311,880 1,345,115 660,790 441.825 2.165,875 1923 1924 805,975 407,580 708.410 1,921,965 945,900 724,830 711,375 2,382,105 3,904,150 1,863,331 438,205 6,205,688 Totals 11,761,165 6,171,561 3,971,585 20,904,311