The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. WEDNESDAY, MARCH 14, 1894.

Pahiatua Herald, Volume II, Issue 123, 14 March 1894, Page 2

The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. WEDNESDAY, MARCH 14, 1894.

The question of providing cheap money for settlers has been discussed in the press of the colony from every standpoint, but up to the piesent no definite plan has been set forth by qny paper. Opposition journals generally l)avc condemned the idea as illusory and chimerical and altogether without the range 0-f possibilities. The more advanced section of the press seems inclined to view the proposal favorably, and strongly advocates the adoption of some course to secure the end in view. But hitherto the subject has been treuJ d entirely in the abstract. No definite scheme j has been formulated; no practical j idea has been suggested that can | promise a satisfactory settlement of | the requirements of the settlers. We thoroughly believe that what is reI quired by the settlers of the country —and more particularly those settlers i who are tenants of the Crown "and ! hold perpetual leases or leases in perI petuity—is a means of carrying their operations to what may bo termed a paying point—the point when they are enabled to produce from their laud. Almost invariably the class of people who beftome Crown tenants are crippled at a critical point of their occupation. Their available capital is generally exhausted by the time they have won their land from the bondage of the bush. They fell the timber, clear, and perhapsgrass their holdings, and then find themselves without the means to purchase stock. They have climbed the tree and cannot reach the fruit. They have not the freehold of the land and are therefore unable to go to the private money lenders and offer security for advances. The ordinary financial avenues are not open to them, and generally the prospect is not a bright or pleasing one. This is the usual lot of the Crown tenant, and it is the necessity of meeting such cases that has compelled so great an interest in the subject ot cheap money for settlers. Naturally the people look to the Government for assistance. The pockets of the capitalists are open to Governments when they are closed to individuals ; therefore the latter have to depend in a great measure upon the borrowing capacity of the former. Just now it might not bo desirable that the New Zealand Government should go upon the home markets to obtain a loan to assist settlers and settlement. Besides, such a course would cast upon the whole of the people the burden of additional interest, while advantages would on|y be felt by those who reborrowed from the Government; provided, of course, the loans were earmarked for settlement purposes only. But there is a way of overcoming this difficulty. Suppose an Act were passed allowing the Government to act as loan ajtnts for settlers holding Government leases. It could be made known at Home that the Government were prepared to receive, through the Agent-General's office, money for investment in the colony, the State guaranteeing the payment of principal and intereet, It would, we believe, be found that there would immediately be obtained a sufficiency of capital at 4 per cent interest. Another 1 per cent would suffice to pay all the j cost of receiving and allocating the I money. The Government could then J proceed to make advances to Crown tenants on toe security of improvements j effected, lending up to say 50 per cent : of the value <x. such improvements. | The very exigence of these would ; prove the bun&des of the settlers, but j oven apart from that there could be no loss. Alreadyiliie land ts the property of the Slat, atid the unearned inert- . ment secured b f the existence of the | improvements*' 0 ®? I*l*l' 1 * I * l ' with the latter, : would comprifof the | lender. The r “ oU ! of ll,l ‘ machinery j required is al* 1 * orklu S order, j The Crown Hangers would

valuo tho improvements and upon thoir reports th© money would ho advanced at five per coni interest—4 per cent payable to the homo capitalist and one per cout to cover Government charges. Of course care would have to bo ox crcised in seeing that the improvements wegc properly secured to tho Government and that they were faithfully assessed by the officers appointed. Tin loaus would be for fixed periods, and tho interest payable at tho same time as the rents. Should there bo a lapse in payments tho proper officer would be required to furnish a report as to the cause and upon that report action would bo taken in precisely tho sane manner a9at present with Government leases. It may b-* urged, why should these loans be confined to Crown tenants? Why debar fr< eholders from participating in these obvious advuii t&gea ? The answer is simple. Th j owner of a freehold has an asset on the security of which he can at any time obtain advances from private money lenders, and it is undesirable that, just now, at any rate, tho Govern in *nt should enter into competition with banks and money-lending offices. Morover, the adoption of such a scheme as we suggest would tend to Crown tenancy and ultimately lead to a greater m asure of land nationalisa tion—a c msummatiou devoutly to b • desired. The scheme is simple* and workable. The Government have ample security to warrant them in undertaking any risk there may b and the foreign capitalists have the guarantee of the Government. It may be urged that such a system as thi* would be but a veiled method of borrowing—that the guarantee of the Government practically makes it a debtor. But how does that work out ? Arrangements could bo made whereby money would not bo received by the Government —or rather interest would not be payable—except upon such sums as would be required for immediate allocation to settlers The j borrowers should be allowed to obtain the amount of money required in several sums, interest to date only from the period of allocation of» ach amount. Therefore the Government would at no time be liable for more than it had actually lent and held security for. There would be no difficulty as iar as captital i 3 concerned. Four per cent may not be a particularly high rate of interest, but it is high enough to secure a sufficiency of capital, especially with the guarantee of the Government. There can be no two opinions as to the desirableness of assisting these settlers. Under present conditions th y are crippled-doomed. Borrow they cannot and hold to their lands they cannot without the sinews of war. Progress is effectually stopped and there is but one outlook forfeiture. But were such a scheme us we suggest initiated their prospects would brighten. The introduction of cheap money would vitalise their energies 'and assist them to prosp' *i ’ and i plenty; and by and-bye the: .urges ! will have been fully met, i j burden removed from them, and th \ will be in positions secure and unassailable. As they prosper so must the country prosper, for are not the prosperity of a people and the prosperity of a nation synonymous tesius?