STATE ADVANCES.

Taranaki Daily News, 20 March 1924, Page 7

STATE ADVANCES.

STATEMENT BY PREMIER. “DEPARTMENT MUST SLOW DOWN” ARREARS MUST BE OVERTAKEN. An important statement was made by the Prime Minister on Thursday with reference to the operations of the State Advances Department, in the course of which he intimated that the department must slow down until the present arrears have been overtaken. VWhen applications are received (tsaifl Mr. Massey) the first thing done with them is to refer them to the Valuation DejMrtment so that the value of the securities offered may be. reported upon. When such report comes in. it is referred to the board set up under the Advances Act. who consider each report exhaustively and recommend accordingly to the superintendent of the State Advances Department, with whom the responsibility for granting the loan, or any part of it. rests, OVER 5% MILLIONS. “L’p to March 6 there have been granted during the present year loans tn 6.358 borrowers amounting to £5,306.982. There f are still a large number of loans authorised, where the amounts have not yet been paid over; and behind the latter, some thousands of applications waiting to be dealt with. Applications for loans will be dealt with in the order in which they have been received, but the department have sufficient applications on hand to occupy their attention for some months to come. “The object of the amending Act of last year was (I) to assist settlers who. though possessing sufficient security, had difficulty in obtaining the loan money they required to enable them to develop their holdings; (2) to assist workers to become the owners of their own homes; and (.3) to make as much provision as possible for the term of the moratorium coming to an end next December.

•PRESENT RATE CANNOT CONTINUE.”

“I think it must be admitted that a very great deal has been done to comply with those objects, and the department will carry on: 'but it must be obvious that the present rate of lending cannot be maintained, and for more than one reason. The Government will not be a party to creating 1 anything in the w<ay of a boom, and there is a tendency in that way at present;. We have enough money to go on with for some time; but I have already stated that the financial outlook is not good, and money in large sums is much more difficult to obtain than was the ease «six months ago. i REPAYMENTS TO BE RE-LENT. “The public scarcely need to be told that lending must be in proportion to the supply of capital: and taking the facts I have mentioned into consideration, the department must slow down until the present arrears have been overtaken. When that has been done i fresh applications will be entertained. ' “I may point out that from the adi ditional capital that has been lent out

recently, there will be a considelabX • amount of money coining in from repayments and interest, which will be re-lent to those requiring borrowed capital for the purpose mentioned in the Act. The latter will, of course, be supplementary to the moneys which we have in hand, and any other moneys which may from time to time be raised for lending purpose!.”