Poverty Bay Herald PUBLISHED EVERY EVENING.

Poverty Bay Herald, Volume XVIII, Issue 6144, 17 August 1891, Page 2

Poverty Bay Herald PUBLISHED EVERY EVENING.

GISHOKNE, MONDAY, AUGUST 17, 1391. TRUST FUNDS AND THE "STRUGGLING FARMER." A Wellington contoinporary draws attention to the fact; that the newspapers throughout the colony have taken vory little notice of the question which Mr Meredith put to tho Government regarding fcho lending of money on mortgage to " struggling settlers " out of tho funds of the Governrnonb Insuranco Department!, Savings Banks, the Public Trust Ofhce, and other trusb funds. Tho silonco of the press was doubtless owing to the belief that nothing would come of the matter. If such a thing wero attempted there would undoubtedly bo a strong protest from tho holders, of the twenty thousand odd policies in the Government Insurance Department. In order that the public limy be kept correctly informed on the subject, ife may be as well to repeat thafc the Government is not responsible for the proper investment of trust funds, though money lodged with tho Post Office Savings Banks js repayable with interest

in any case. The elsposiidr. takes no risk whatever, excepting that of colonial insolvency. With regard to Public Trust funds, the colony is only responsible for fraud on the park of its own officials. If the Publio Trustee or any of his subordinates embezzles the funds, the Government will make good the amount ; but there is no provision against losses through errors of judgment. The sum of LIO.OOO might bo advanced on property which might not realise half that sum, and the widow, the orphan, or other person to whom the money belonged would have to bear the whole loss. Political influence in dealing with such funds would be exceedingly dangerous. A most important consideration is to find borrowers who are not "struggling." A considerable number of the Canterbury farmers are in a bad way, owing to having entered upon the land with insufficient means. They purchased ab abnormally high prices, and have had to pay from eight to ton per cent, for advances. As the lands were bought in the speculative days, these advances in many cases amounted to considerably more than the selling value of the property at any time during the past eight or nine years. The unfortunate mortgagor is thus in a position of helplessness. If his farm wore worth more than theinort"gagemoney,hewould have no difficulty in raising money at six or seven per cent, in the ordinary way. About the only hope lies in the Government coming to his assistance. From Canterbury has come the demand for a State Bank, and the proposal in regard to fche investment of trust funds is something of the same nature. There is nothing now to hinder the small settlor borrowing money from the Governments Insurance or Public Trust Office if he is prepared to givo the required security. Writing on the subject, the New Zealand Tunes says :— "lf Mr Meredith had examined even cursorily the printed acounts of tho two institutions referred to, laid before Parliament many weeks ago, ho would have seen that the Public Trust office had at the end of last year L 205.900 lent on mortgage, and that the Insurance Department at the samo date had mortgage investments amounting to L 351,332. In all these cases moderate, but what must of necessity be safe rates of interest arc charged. As it is, we are informed that many settlers who have hitherto been in the hands of private mortgagees have transferred their loans, in a regular business way, to both of these institutions, and others are continuing to follow their example. But no trust moneys can possibly bo employed in charity. No rate of j interest on life insurance funds can be permitted to bo so low as would in anywise, even in tho remotest degree, tend to endanger that certain yield of income which the ascertained rate of mortality and tho adequate surplus of safaty necessarily demand. No considerations, no charitable device for merely assisting struggling settlers, without sound security and a remunerative rate of interest attaching to their applications, can for a moment be allowed to interfere with these primal and absolute principles in the administration of such funds." We regret to say that the Minister of Justice had not the boldness to inform the member for Ashley that tho Government would under no circumstances take any action which might lead to trust funds boing invested on properties which would not leave a .sufiicienb margin of security. Instead of that tho Minister replied that j the "Government would bo prepared to give the most earnest consideration to any plan that might be placed before them during the recess, to give effect to such an object." Confidence in tho Public Trusl Oflice has recently boon considerably shaken, and, therefore, the Government should have deemed ib the more necessary to make an emphatic declaration that the utmost care would bo taken in the investment of funds, and thafe the over mortgaged and struggling sottlers of Canterbury or any other part of fehe colony were nob a desirable class of borrowers.

prvvMr Eames. Government auditor, arrived by fcho Wairarapa from Dunedin yesterday, and is at present engaged in auditing the County accounts. The programme of tho spring meeting of Uio Poverty Bay Turf Club appears 'in another column. As usual a liberal amount is offered in stakes, and no doubt this club will have another successful season's racing. At the concei t in the Church of England' schoolroom tomorrow evoking Romberg' Toy Symphony will bo one of fcho items pro scnted. There wi'l be several changes in tho itemsasadvertised, but amended programmes will be found in the room. The following applications were granted tit the Trust Commissioner's Court before James Booth Esq Lease of Ohahuatni No. 2c from Amiria Tipcki to Pirinika Tukamoana, conveyance trom Tamati Terangi to Allan McLean of Okirau Noo, also a transfer of Takopa In from Terangi Tu.waru to Allan McLean. The Salvation Army had a great " go' yesterday. They started at 6 a.m. with their band playing through the town. At 7 o'clock they " Sharpened Uattleixes," from 10 to 12 a Solemn Assembly" was hold, a " Glory Meeting" at 3 o'clock, and "Casting out Devils" took place at 7 p.m. To-nighfc a private soldiers' meeting will be held. The following is tho New Zealand Loan and Mercantile Agency Company's London market cablegram, dated 14th August;, 1891 : ', — Tallow : Tallow is re.uly of sale. Fine mutton tal'ow is worth 2Ss 3d per cwt. Good beef 26s 3d per cwt. Frozen meat : Mutton market chili. Canterbury mutton is worth 4^l per lb, W«llington 3§d per Ib. Lamb m rkcfc unchanged, Supplies of American beef are heavy. There 13 little demand. Sew Zealand bcof (forcquartcrs)is worth 2^d per Ib. New Zealand beef (hindquarters) 4jtl per lb. Quotations nominal. The football match Waverley v. Wae-rcnga-a-hika was payed at tho College ground at Waerenga-a-hika on Saturday afternoon. The match was a good one, and, although the Maoris were too heavy for the Waverloys, tho latter several times worked the ball close up to the Maori goal lino, but did not score. When time was called tho score was : Waorenga-a-hika, 6 points ; Waverley, nil. The best players on tho Waverley side were MoKenzie and GoldSmith. Footballer writes:— Now that the Cup matches are all ovor, and the football season is rapidly drawing to a close, I would like to suggest that a fool ball match be played for the benefit of tho Hospital which is Rolely dependant on public subscriptions. A match, say between tho old rivals, Gisborne and Turangamii, would be sure to attract a large i attendance, and for such a good cuuso it commends public sympathy. Perhaps the secretaries of the two above mentioned clubs will take the matter in hand and try aud aivange a match for next Saturday. lv the civil action T. J. Sfceele v. C# Rumloae, claim damages L 282 8s Gd, before a special jury of four, consisting of R. Barker (foreman), G. Humphreys, D. Reed, and D. Kirkpatriclr, Mr Cooper appeared for plaintiff and Mr Sainsbury for defendant. The wholg of this morning was occupied in taking tho evidence of the plaintiff, which was very lengthy. The case was gone on with aftor tho adjournment, and was proceeding when we went to press. The verdict in this case will facilitate the result in tho aotion T. J, Steole v. C. M, Christiansen, claim damages L2OO. A lad named Parsons, i» lha employ of Mr Pollock, grocer, was (his afternoon given in charge. It appears that while on an errand on Saturday to Messrs Clayton and Sawyer'ss ofiica, seeing a cheque book lying on tho table of tho office ho abstracted a blank cheque, and thig afternoon pro' scnted it at the Bank filled in for the sum of L 4 10s with the name of the /inn from whose office ho had taken tho form, and had endorsed it with his own. It was n cUimsy attempt, the name of the firm boing spelt "Chiton and Sawyder." The Times disoredits the statement that Russia will prohibit the export of wheat, and believes thftb tho order will apply only to lye,