Advances to Settlers’ Act.

Southern Cross, Volume 4, Issue 2, 11 April 1896, Page 8

Advances to Settlers’ Act.

The deliverances of responsible Ministers are at all times the subject of much criticism, and the speech of the Colonial Treasurer has been no exception to the rule. It seems to be a never-ending dispute whether his ■visit to London helped the three per cent loan or not. The real explanation of the success of the loan was the fact that the British investor believed in the way the money was going to be used, and so considered the investment a very satisfactory one. So far so good, but now comes the strange part of the business. The money was borrowed to lend to farmers, bnt it has not been so lent, or at least only a small portion of it. Don’t the farmers want the money ? Yes,

of course they do, bat they cannot get it,; and, the Govern meat appear to be open to blame for the, trouble. Talk about putting more life into the lending department! What is really wanted is the exercise of a little more common sense in the administration of the Act. For years past, indeed for the whole term of their office, the Government have discouraged the freehold tenure, and by the superior inducements, held out in the shape of perpetual leases and leases in perpetuity have made the freeholder a man of the past, and having done this, they allow the officers of the department to put every possible difficulty in the way of a leaseholder getting a loan, so that settlers who take up land under the only tenure that they cam get it on are punished for doing so. The Government have one policy, but the department has another, and that is to lend only on freeholds. Now and then they give a loan for a reduced amount to a leaseholder, but their objection to leaseholds is nevertheless as strong as that of any private money lender Granted that the value of the improvements offered as security for a loan is sufficient. The leaseholder should be held |in the same respect as the freeholder, but such is not the case, or before now a very much larger portion of the million and a half loan would have been out of the hands of the Government. If the Advances to Settlers’ Act is to be of the advantage to the country which we believe the Government desire it should be, the best thing they can do is to make a purely commercial department of it, and get rid of the redtape element. The Colonial Treasurer is perfectly justified in saying that the advent of the Advances to Settlers’ Act has brought down the rate of interest. There is no doubt about it. It is the beginning of a great movement in the right direction, and it is a pity that the members of the Government should waste so much of their time in disputatious politics when there is such a great field before them. It is possible, under more favourable circumstances, to make the Advances to Settlers’ Act a great success, when the old order of things would give place to a new. Communities of small proprietors producing more plentifully and making agriculture more remunerative, would spring up in all directions, and, as a natural consequence, the higher value of the land would make the repayment of a loan doubly sure. If the land is to be peopled, and peopled successfully, it must be done in what, the world over, has been found the most satisfactory way, i.e., by means of small holdings, the productiveness of which would add greatly to the wealth of the country, and enable the State to largely increase its taxpayers, for the thrifty settler is the country’s best customer.