Thames Star. WEDNESDAY, JANUARY 27, 1932. STATE ADVANCES OFFICE.

Thames Star, Volume LXIV, Issue 18402, 27 January 1932, Page 2

Thames Star.

WEDNESDAY, JANUARY 27, 1932. STATE ADVANCES OFFICE.

“With malice towards none; with charity for all; with firmness in the right, as God gives us to see the right.”—Lincoln.

The Official Year Book for 1932 contains a report on the operation of the State Advances Office. From it we gather that, at the end of March, 1931, outstanding advances to settlers amounted to £24,619,486, owing by 31,967 individuals. Interest receipts for the year ended March last totalled £1,161,820, while interest payments on borrowed moneys aggregated £989,740, leaving a gross profit of £172,080. The cost of management and expense totalled £32,854. Losses no the realisation of securities, together with the writ-ing-down of doubtful securities and of office equipment, accounted for £102,470; the writing-down of loan flotation charges for £12,931, and £Bsll was paid on income-tax. This left a net profit of £15,314, Avhich was invested in the Advances Sinking Fund Account. Since the inception of the scheme in 1894, the advances to settlers (excluding rural advances) have aggregated £41,689,625. During the whole period losses are said to have totalled £300,644, or 14/6 in every £IOO of the amount advanced. Turning to the Advances to Workers’ branch, we find that since its inception in 1906, a sum of £21,112,477 has been advanced, and £5,715,237 repaid, leaving £15,397,240 outstanding at the end of March last, Many of the loans were granted when land and house property were at fictitious values, and the margin between advances and values was usually narrow, especially in the case of advances to workers, where it was generally only five per cent. In some cases, perhaps, a substantial portion of the original loan had been repaid, leaving the mortgagee with a fair security for the balance, but, in most cases, it is to be feai;ed that considerable loss will he sustained, which will not be disclosed until the property is sold again. In the case of advances to settlers, many of these have been made on valuations which cannot now be sustained, nor are likely to be regained for some years, if ever. Where default is made and the property falls into the hands of the mortgagee, many heavy losses are likely to be sustained, to be disclosed only when the properties are again disposed of.