The Feilding Star, Oroua & Kiwitea Counties Gazette Published Daily. WEDNESDAY, AUGUST 19, 1896. ADVANCES TO SETTLERS ACT.

Feilding Star, Volume XVIII, Issue 43, 19 August 1896, Page 2

The Feilding Star, Oroua & Kiwitea Counties Gazette Published Daily. WEDNESDAY, AUGUST 19, 1896. ADVANCES TO SETTLERS ACT.

Although this Act has much to recommend it as a matter of sentiment, yet there are piactical men who do not look on it too favorably. A writer in the Melbourne Argus commenting on tbe Act says : — ** The New Zealand Government bas placed itself in the position of the ntushroom institutions of the Victorian boom. They took money freely, and having: to pay heavy interest upon it they were compelled to rush it out. There was an eager demand for securities, and inflation followed as naturally as daylight accompanies the sun. So in New Zea land, where the Commissioners found that in the first instance they could only place, out a third of the borrowed money ou first-cla3s securities, and tbat time would be required to prudently invest the balance, the Government, in order to earn the interest which they were paying, directed in effect that second-class securities should be taken, and possibly thirdclass will come into favor later on. When the pressure is to put money out, values are necessarily forced up. Thus tho curse of over-borrowing is inflation, while the danger of large local operations is that they unduly affect a circumscribed money market."