The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. THURSDAY, DEC. 13, 1894. ADVANCES TO SETTLERS BILL.

Feilding Star, Volume XVI, Issue 143, 13 December 1894, Page 2

The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. THURSDAY, DEC. 13, 1894. ADVANCES TO SETTLERS BILL.

As the Government is now prepared to receive applications for loans on mortgage under the provisions of the " Government Advances to Settlers Act, 1894," it may be of service to many of our subscribers to give a short summary of the provisions of the Act, that they may be ablo to judge of the advantages offered to those wbo may : desire to avail themselves of it. Advances are made on freehold lands (not being town or suburban) registered under the Land Transfer Act, or the Deeds Registration Act, and on crown leaseholds, whether held on the deferred payment system, on lease id perpetuity, on perpetual lease, or as small grazing runs. Loans will be granted up to the maximum amount of £2,500. Tbe interest which includes sinking fund Jb fixed at 6 per cent payable half yearly, for tbirty-six and a half years, at the end of which term the capital sum borrowed will have been repaid and tho property freed. Schedule No 2 of the Act clearly shows the position of the mortgagor on the payment of each half-yearly instalment This position is constantly changing as each half yearly payment is apportioned partly in payment of interest and partly in teduction of the principal Bum borrowed, want of space preventing our reprinting the whole schedule but the progrossive character of tbe arrangement by way of reduction of the borrowers liability will be seen by the fact tbat tbe liability on every £100 borrowed is reduced.

Provision is made in tho Act for 1 the reduction of the principal by sums of any amount not less than £5, which are held, by tho Government, witb accumulation of interest at 4 per cent., in reduction of the mortgage debt. Or if a happy windfall enables the borrower at any time to do so, he can discbarge his mortgage by paying the " balance of principal " shown to be owing ar the time as por the schedule referred to. From tbe borrowers point of view the provisions of the Act are eminently favorable by comparison with any private money-lending system which has hitherto obtained in the colony It is, of course, to be deplored thai any settler should find it necessary to take a burthen on his shoulders, which, like Sindbad the Sailor's •' old man of the sea," is apt to make his lodgement a fixture for ever on the borrower's back. But by this Act the inevitable burthen is made qb light as it is possible t'> mako it, and tbe power to lighten tbe load by degrees and to throw it off entirely at any moment, should the bearer be able to do so, is one of the most valuable provisions of the Act. From the point of view of the colonial taxpayer, who assumes the position of the money lender under this Aot, we cannot make so favorable a forecast of results. We fear the narrow margin left to cover contingencies and expenses of administration cannot fail to leave a deficit to be charged on the Consolidated Fund. But the experiment is worth a trial, even at a contingent small cost to the colony and in the interests of progress aud of that most useful and deserving class, who will be the boirowers, we sincerely hope that the experiment will prove an entire success to both the parties concerned.

£ s d At the cad of 10 years to 87 4 7 20 „ 66 6 10 25 „ 51 5 1 „ 30 (/ 82 0 1