CHEAP MONEY

Poverty Bay Herald, Volume XLIX, Issue 16174, 10 July 1923, Page 5

CHEAP MONEY

PREMIER PROMISES AMPLE SUPPLY.

(Parlininentarv Reporter.) WELLINGTON, this day

The Premier informed the House last night, on tho second reading of the State Advances Bill, that last year tho Department had advanced £827,750 to 1580 applicants, while local bodies borrowed £191.565, There were repayments amounting to £1,000,000 annually, and this money went out again, but what had been done would be small compared with what it was hoped to do when the Bill passed. Within the next twelve months lie saw no difficulty in bringing the capital of the Department up to £20,000,000. Mr. Wilford : Another £5,000,000?

Mr. Massey : Yes, and I have £4,000,000 in sight. Before the Bill passed lie intended asking Parliament to give further borrowing powers, if it became necessary, though personally he thought it would be unnecessary, but he would take no risks. Even if they borrowed at the rate recently paid they would be able to lend at a rate which would mean no loss to tho State, which only wished to make ends meet, desiring no profit. Two factors made him anxious to extend the operations of the Department: One the housing shortage, which was specially serious in Wellington, Auckland, and other towns, and the moratorium ending in December, 1924, though in view of the facilities for loans to repay mortgages through the Department he though there would be few left when tho moratorium ended.