THE OTHER SIDE.

Dominion, Volume 2, Issue 481, 14 April 1909, Page 8

THE OTHER SIDE.

AN ADMISSION AND SOME REFUTATIONS. THE DEPARTMENT IN REPLY. The matters mentioned by Mr. N. Kettle, Napier, were submitted to tho head of the Advances to Settlers Department (Mr. P. Heyes) by a representative of Tin; Dominion in an interview yesterday. In reply to a question, Mr. Heyes said that it was quite true that applications for advances to settlers had been refused. Tho demand for loans had been greater than the resources of the Department had been able to cope with. " During tho last 12 months," ho explained' "something liko £2,000,000 has been advanced, principally to struggling settlers in tho baekblocks, who are regarded by us as our best. assets. Wo aro less likely to bo duped by tho man who is earnestly endeavouring to make a homo for himself, than tho man in better circumstances." Referring to Mr. Kettle's statement concerning tho graduated tax on capital invested in buildings, Mr. Heyes said that there was no such thing in New Zealand, nor were shareholders in public companies taxed on their interests. It was wrong to say that thoy were. On tho question of mortgage taxes, the speaker said that tho system adopted in New Zealand had in practice boon found to bo much simpler and more effectivo than the Australian system. It was based unon the principle that where land was held on mortgage the mortgagor and mortgagee wero conjointly land-owners, and liable, proportionately, for what was in effect payment of land tax. This system allowed of a more effectivo chock than if the mortgage© was made to pay income tax.