LOANS TO PERPETUAL LEASEHOLDERS.

Timaru Herald, Volume LIII, Issue 5194, 15 July 1891, Page 3

LOANS TO PERPETUAL LEASEHOLDERS.

(Press Correspondent). A deputation waited on tbo' Premier on Monduy,gconsisting of Meo«rs Qui'ihickk, O. j H. Mills, T. K. Maedouald. R-. H. J. iteeves, W. Kelly, J. Kelly, Fiuknrton, Pnlmor, Earnshaw, W. Hutchison, and others Mr Guinni ss introduced the deputation. Its object wus to request that the fcloverninont would introduco legislation providing that perpetual leaseholders and deferred payment solectors miglit borrow money on the security of thoir holdings from the Public Trust Offico and Government Insurance Office. Ifc was pointed out that whilo those offices woro authorised to lend their trußfc funds on freehold scurities they woro not empowered to advance money on loufloholds. iho doputation asked that tho Trust aad InsiiraDCO Oißc-es should be authorised to mako advances up to ono half tho valuo of tho improvements upon tho land They urged that this chould be done, as it would remgvoa disability which now attached to perpetual leaseholders, nnd would render their tenure m^ro nearly equivalent to freehold. Tbcy contended also that by thus aiding their tenants tho Government, would be dome much towards facilitating and encournging tbo (settlement of tho iund.

Tho Premier, m reply, stated that ho was moat, olronuous'y oppoa»d to sanctioning tho investment of trust moneys on uny aecuritiea which wore not beyond all question as to their soundness and sufficiency. Ho promised, howovor, tn cjnsult competent ndvisors as to whether tho concessions sought could with safety und proprioty be granted.

Whan I epoke to ono of tho deputation, Mr Mill?, or. this subject, ho said he favoured the proposal to allow settlers lo borrow monoy m the way suggested. I asked if ho thought it would be wieo for suoh a power to be given them, nhon !:o argued that tho pnrpetual louse eystora was m itself a mortgage, and th'ifc it was only an extension ;of tho pi'inoiplo. So snid, moroovor, that the Trust Boards would tuke care monoy was not lent on uusound security. On tbo othor hand Mr Hichardeon,ex-Miuistor of Lands, firmly onpoeo.i tho suggestion lo give this borrowing powor. Ho says— "One of iho beauties of the perpetual loaao systom is that tho Government have a Jfirst mortgago oyor iho property." i