XII

8.—6

Discharged Soldiers Settlement Account. The following statement shows the extent of the financial operations in regard to loans authorized and advances made under the Discharged Soldiers Settlement Act up to the end of the financial year : — Advances Section 6, Discharged Soldiers Settlement Act, 1915: Authorized. made _ Advances on current account: — £ £ 3,326 returned soldiers .. .. .. 3,206,674 2,390,740 Section 2, Amendment Act, 1917 : Advances towards purchase of farms, market-gardens, orchards, &c, and the discharge of mortgages : — 5,331 returned soldiers .. .. .. 8,512,874 8,280,037 Section 2, Amendment Act, 1917 : Advances towards the purchase and erection of dwellings, and discharge of mortgages thereon : — 9,196 returned soldiers .. .. .. 6,222,432 5,586,009 17,853 returned soldiers .. .. .. £17,941,980 £16,256,786 Repayment of principal . . £904,313 Transfers to Realization and other Accounts —securities in course of realization .. 15,996 , 920,309 Balance out on mortgage .. £15,336,477 The gross receipts for the year amounted to £1,229,492. Of this sum. £726,172 represents repayments of loans, while receipts in respect of interest and sundries total £503,320. Owing to the large number of applications received last year from returned soldiers for loans to assist them either to purchase and farm their properties or provide them with residences on easy terms, the financial authority under section 3 of the Discharged Soldiers Settlement Loans Act became exhausted, and Parliament passed legislation enabling the Government to raise an additional amount if required. In order that funds might be conserved the granting of loans for the purchase of single farms was restricted to cases where the withholding of the same would have caused serious financial embarrassment, with possible loss of capital to soldiers. In order that the Government might afford relief in the matter of houseshortage, loans were granted to applicants for the erection of dwellings and, where necessary, the purchase of building-sites. In a few cases of distress loans were also granted to assist in purchase of dwellings. Where it is abundantly clear that soldier settlers are deliberately evading payments under their mortgages and are neglecting their properties, steps are taken to either arrange for transfers to other suitable returned soldiers or to realize by exercise of power of sale. Swamp-drainage Reclamation. Considerable progress has been made with the various operations necessary to adequately drain and road the various schemes in hand, and as soon as areas were prepared for settlement they were opened for selection. Continued attention is being paid to the improvement of the areas selected in the past, this being necessary as consolidation takes place. Active work will be undertaken shortly in connection with reclamation of Hikurangi Swamp, as the plant is arriving from overseas. The possibilities of reclaiming large areas in Southland and Westland are being now, examined by field parties. In accordance with the policy of the Government, standard - type. machines, comprising floating dipper dredges, dry - land dippers, walking and caterpillar