ADVANCES.

Dominion, Volume 6, Issue 1822, 7 August 1913, Page 4

ADVANCES.

to SETTLERS, WORKERS & LOCAL AUTHORITIES. IMPROVED POSITION. The amount* lent during tin year w«ro as follow.— -C Settlers (including loans from Public Debt Sinkiuit Fund) 937.435 Workers 440.200 Local authorities 547,295 The report and balance-sheet of the Advances to Settlers Branch shows a profit for the year of £7.1,864, and that of tho Advances to 'Workers Branch a i profit of <C11,2G3. • These profits are mora 1

than absorbed by the sinking fund con* tributions. Tho Local Authorities Branch shows a less of £035, which is very tmall compared with tho losses of tho previous years. During tlio two previous years the less amounted to .£22,557, and this will be provided for out ol' tho surplus in tho Consolidated Fund <it March 31, 1913. Since tho introduction of last year's legislation tho business lius undoubtedly been put on a bolter footing. Amended legislation is being introduced which will consolidate and simplify tho present law regarding Stale advances. Tho existing to'slem, under which tho Superintendent is required to raise tho money for ccrtain other Departments with tho administration of which ho has no .connection, has proved cumbersome and inconvenient, and it is intended to provide that in future tho Treasury shall raiso all moneys required for such purposes as land for settlement, Nativo land settlement, opening up of Crown lands, ctc., instead of tlio Superintendent. The amending Bill will also mako provision lor bringing tho sinking funds of all new loans of tho Advances Offico under tho operation of the Public Debt Extinction Act. With regard to existing loans tho Superintendent litis hitherto been required to pay each year 1 per cent to tho Public Irustoo for investment as a sinking fund. To do' this, capital moneys had to lx> encroached upon to sonic extent. It is proposed that, with resard to these loans, tho Superintendent shall himself invest tho sinking fund in loans to settlers, workers, or local authorities instead of- paying it to tho Publio Trustee for investment. The Improved Position,. Previous to tho dato when tho present Government took offico tho Advances Board found it impossible, owing to financial stringency, to entertain applies , tions for loans to repay existing mortgages. The board also then found it necessary, for tho samo reason, to limit tho loans under tho Advances to Settlers Branch to sums not exceeding £500. Recently, I am glad to say, the board has lieen ablo to relax this stringency somewhat, and loans aro now bcinq granted for the purpose of repaying existing mortgages in tho case of Crown leaseholders, ana limit of loans to settlors has been extendod from £500 to £750. In 'November, 1912, it was also found ncocssary to limit tho loans granted under tho Advances ,to Workers Branch to sums not exceeding £300. In May last this limit was raised to £400, an<l loans up to that amount are now being granted to workers by the board. The following tables will show tho greatly improved position of tho Depart*, ment's funds at June 30, 1913, as compared with Juno 30, 1912:— June 30, June 30, 1912. 1913. , Advances to settlers— £ £ Total commitments .... *73,142 1154,221 Total funis fG14,739 813,043 Advances to workersTotal commitments ... 1559,891 63,775 Total funds 655,166 158,978. Advanoes to looal au- j - thoritice— . . ' Total commitments ... 711,820 §488,170 Total funds 96,783 428,980 'Includes £34,680 temporarily transferred from Public Debt Sinking Fund Branch. tlueludes £360,000 temporarily transferred from Settlers Branch to Workers Branch. Uncludes £10,000 temporarily trans-, ferred from Guaranteed Mining Advances Branch. £151,840 temporarily transferred from Settlers Branch. 1 All loans granted by tho Advances Of-1 fice aro on what is known us tho instalment. system—that is, each half-yearly instalment paid by tlio borrower for tho, loan is comprised partly of principal and partly of interest. 1 • Tho proportion of these half-yearly m-, stalinents which represented' repayment of capital during tho year was as fol-, 1 lows:— £ Advances to settlers 111,431 Advances to workers 35,410 Advances to .local authorities ... 20,121 It litis beijii'thti ptittitio ilithbrto, when '' quoting figures repressnting repayments of .capital, to include all mortgugos repaid, even where a mortgage is repaid by tho granting of an increased mortgage to tho samo mortgagor. As this practice • \ is misleading, it has been decided for tho future to publish in this tablo only tho repavmcnts of capital which aro included in the ordinary instalments of interest and principal. ! Local Bodies' Loans f A'ct. An amending and consolidating Act relating to tho raising of loans by local , bodies will be introduced. 'This measure will contain provisions which will remove ccrtain restrictions now imposed on local authorities in connection with, raising loans. It will also mako proyision forlocal authorities to borrow moneys undci. tho guarantee of tho Government. Local Government Reform. Further information has been obtained concerning local government in some States of the Commonwealth. I his has been considered by tho Govornmont; but, in view of tho very heavy programme or legislation provided for this year, it is doubtful if Parliament will haw time this bossion to adequately consider this important subject. It is intended, however, that proposals dealing with localgovernment relorm will, it possible, bo circulated this session for tho, consideration. of members of Parliament and lo«\l, bbdies. Post and Telegraph Department. Tho business of the Post and Telegraph Department continues to show a steady, and gratifying improvement. Tho receipts during tho year amounted to £1,167,977, au increaso of £78,169 over the previous year. The expenditure amounted to £1,066,772, an excess of £5871 beyond tho amount votod, and .£50,245 over tho previous year. It will be realised, how* ever, that tho expenditure of this Donwtment must necessarily incrcaso with tho expansion of business a.nd consequent increase in revenue. The Savings Bank business shows that the public confidence in the Department is unabated, tho deposits having amounted to a total of £11,725,183, a higher amount than ever previously received m olio voar. The deposits wero ill excess of withdrawals, and the amount; standing at crodit of depositors on December 31, 1912, iwas £1(i,330,257, an increaso of £rS7,Oi() over tho amount at credit on tho corresponding date in 1911. Owing to tho increaso in the ruling rato of interest obtainablo for ordinary investments tho withdrawals from tho Post Office [savings Bank wero unusually heavy during the year. Tho nioiioy-ordei l and postal-noto business also shows a very considerable increase, the orders and notes issued exceeding in value tlioso of the previous voar by well over half a million sterling. Tho inauguration of tho party-lino system has helped to increaso very largely tho number of tclephonc-exchnngc subscribers, and this lias necessitated s heanor expenditure on tho construction of lines than was anticipated. The revenue derived from this class of business is, howover vcrv satisfactory, and is sufficient to meet all inteveit charges oil tho capital borrowed as well as the working expenses. ]t amounted to no less (linn during tho venr. The net expenditure out of Public Works Fund for telegraph-ex-tension was £231,375. Railways. Mr. lliley, late of tho North-en stern, and Great Northern lfailways of Great Britain, has l been appointed General Manager of the New Zealand railways. He will take up his duties on his arrival in Now Zealand. I oni plelisoi lo bo able to announca flint, tho interest earned by (lie N'w £ealnnd railways on the cost of during tho year ended March 31, 1913, is tho second highest oh record— namely, £4 os. 9d. per ccnt., notwithstanding l»rK« increases in tho wages of the stall in accordance with tho provisions oi ™ c " tion 22 of tho Appropriation Act, IJI- - Department. For tho first limo in the history of tho Stamp Department, which has been in exist«nco since 18G7, the r«venuo tor tho financial yoar has oxce.-ded one n 1 " 1 "" 1 pounds sterling. Tho revenue of the Department, which was formerly shown in conjunction with tlio Post and lelegraph revenue, has during tho last three years been shown separately, tho gross i*. ceipla being i\s l'ollcw: 1910-11 872.562 lflll-12 952,033 I 1912-13 1,062,457