The Waipa Post. Published on Tuesdays, Thursdays, and Saturdays. TUESDAY, JUNE 26, 1923. STATE ADVANCES.

Waipa Post, Volume XXIV, Issue 1410, 26 June 1923, Page 4

The Waipa Post. Published on Tuesdays, Thursdays, and Saturdays. TUESDAY, JUNE 26, 1923. STATE ADVANCES.

riiU important extension of policy of the State Advances Department which Mr .Massey further elaborated in the House of Representatives last week constitutes a proof of the Government’s anxiety to help producers and to assist, workers to procure homes 'or themselves. The producers have passed through an exceptionally critical period. The set of circumstances p; ext:ntod in the boom prices of the war period and the consequent, inflation of land values being followed by a fall in the prices of primary produce on the world’s markets created grave difliculties which in part were met by the moratorium. In the general interests of the community, however, the operation o ft he moratorium must in due time he ended. The Government has now decided to increase the amount which an individual borrower may secure from 'he Advances Repairmen and also ;e diminish the margin of security required by the Department, This represents a considerable enlargement of the principle upon which the system of Stale advances was established. For a conshierabl. period the maximum amount of an advance was t; 1 AOt) while at. the present time the statutory limit i. •..TbiiO. iii ;a _• n. v . e.,,ion : 1:e Government. proposes to increase the sum to £351>0 and to allow the settler to borrow up to To per cent of his se | curity as against ;lie present limita- | lion of 60 per cent. The Prime Alin - lister suggests tiial this latter proviI sion will meet the difficulty arising cut of increased valuations. This opinion is however, not shared by Mr Wilford. It will he interesting to learn how much further the Leader of the Opposition would 1,0 prepared to go. for we believe that all prudent members will agree that the proposals of the Government are exceedingly liberal. not to say highly generous. A further extension is proposed with regard to the Advances to Workers Act. At present the maximum advance is 75 per cent of the value of the building. It is proposed to increase the amount to 95 per cent, (t may he presumed that this increase has been decided upon in the light of experience, but it certainly appears to contain a serious element of risk. It is claimed by the Prime Minister that the risk is covered by the character of the borrower. That is. however, a claim of uncertain quality, serving to illustrate, as much as it does anything else, the extent to which the Government may depart from the ordinary principles of business when it engages in business dealings. An advance of 95 per cent of the value of a section and building, however plausibly it may be defended as an expedient desired to promote a solution of the housing problem, cannot be regarded as a perfectly sound business transaction. The policy which the Government has felt impelled to adopt in this relation may he compared to that forced upon it in connection with the demand a few years ago for land for soldier settlement. In its endeavour to comply with the demand for farms for settlement by soldiers the Government purchased land at the top of the market, and made considerable advances. Now that values have receded it is faced with the need of revaluation as well as that of | a large remission of rentals. The j housing difficulty 'has created a strong j public sentiment in favour of increased State effort, but, while it is true the Government must use its endeavours to provide a sufficiency of accommodation for the people, il is still import- j ant that care should lie exercised by j it to protect the Stake against the dan- I ger of heavy loss