CHEAP MONEY.

Wanganui Herald, Volume XXIX, Issue 8542, 9 May 1895, Page 2

CHEAP MONEY.

• . ♦ The Yew Zealand Loan. Australian Press Criticisms. , (By Xl«ctrio Telegraph— Copyright ) (Per United Press Association.) BsiSßjuni, Hay 8. ' Tha Courier, commenting on the Advances to Settlers Act of New Zealand, considers it a good thing for the borrower but strongly savouring of injustice to lending institutions and private mortgagees who have advanced loans on values whioh how leave them no margin. The A«t, it says, seems adapted to trans* fer to the Government Lending Board all gilt-edged securities in New Zealand, and leave tke ordinary money lenders such properties as are mot good enough for the Board. This is calculated to extinguish, the money lending industry altogether. However, adds the Courier, the ingenuity of persona whose interests are menaced are likely to be equal to the exigency, and there is a probability that some of the existing mortgagees will discover meanu of foisting doubtful securities on the Board. Sxsrit, Mar 9. The Daily Telegraph, referring to the Brisbane Courier's article on the Advances to Settlers Act. of New Zealand, says it hardly thinks so much gilt-edged securities will go to the Government Lending Office as the Courier imagines. It is quite possible to plaoe flrst-olass mortgages at six percent, or even below that at the present time, and therefore it is probable that the more doubtful securities will be transferred to th» State Lending Ofßoe. The effect will bo to level down all rates to the offioial rate, and lending companies will only take tho best properties on suoh terms. Bates are slowly Coming down, and they would be lower even than they are now if it were not .that the reconstructed institutions have to pay 4$ per cent. The banking aud mortgage companies will be conducted more economically aad on a different basis m future, but still it is quite likely that the Government Department will supplant a' good deal of oapital now employed. In the" Advances to Settlers Aot of New Zealand the politioal aspect of the whole proceeding is very serious, and the result of the expertmen* can only bs tested by time, and strictly non-political and oapable administration must be eeiectial to its suossss.