STATE ADVANCES OFFICE.

Otago Witness, Issue 3774, 13 July 1926, Page 71

STATE ADVANCES OFFICE.

THE YEAR’S OPERATIONS, In presenting the Budget, the Minister of Finance (the Hon. W. D. Stewart) supplied the following particulars in regard to the operations of the State Advances Offico during the past year: During the year £6,371,375 was added to the capital fund of the State Advances Office, which on March 31, 1926, totalled £33,148,274. The additional loan-money provided has been Used- largely by farmers to establish themselves in permanent and profitable occupation of their lands, and by workers to provide homes for themselves and their families. The total advances current at March 31, 1926, were £30,296,837, being an increase on the previous year of £4,638,977. Owing to the high rate the office has had to pay for the last few years for borrowed money, the department during the year was obliged to increase the rates of interest payable on new loans. Although this has been done, the department has assisted mortgagors to meet the increase by extending the terms of their loans, the result being that the half-yearly instalments payable under present rates amount to very little more than what borrowers were previously called upon to pay. The advances actually paid over during the year numbered 6063 and amounted to £6,269,403. If proof of the assistance rendered to settlers and workers in regard to their financial needs be required, these Ggures amply furnish it. The new business for the year was as follows: Amount. Number. £ Loans granted to settlers 4.747 5.409.310 loans granted to workers 3,303 2,763,G44 Loans granted to local authorities 112 157,520 8,162 £8,330,474 As in the previous year, a very largo 6um of money was provided last year for redemption of mortgages, and since tho month of October, 1922, when it was decided to grant advances for this purpose, 9833 loans have been granted, amounting to £12.030,265. The resources of the office have been thus largely used to meet the demand for homes throughout the Dominion, and for advances to redeem existing mortgages on farm lands, but it is unlikely that new capital will be available to the same extent as in the last three years.