LOANS TO NATIVES.

Gisborne Times, Volume XXIII, Issue 1871, 28 September 1906, Page 2

LOANS TO NATIVES.

CHARGES OF 50 PER OENT,

ese-^a ((Special to Gisborne Times,

Wellington, last night. In the oourse of a discussion in the Legislative Counoil this afternoon the Hon, Mr Oarnorosß called attention to the high rates of interest charges to natives by a money lender on the West Coast of the North Island. The rate, he said, was as high as 50 per oent, and in oertain cases it was even higher. In some instanoes, he said, the native borrowing £lO was charged 10s for 11 writing out doouments.” He received £9 10s in cash, and beoame liable for £l2, which brought the interest up to over 26 per oent. for any period not exceeding six months. Tire man in question, he said, was a J.F. and a licensed Maori interpreter. Judge Seth Smith, who recently inquired into the matter, has supplied a report giving partiouiars of the charges made by the man in question. He suggests as a remedy that money lending to Natives be prohibited by Statute, or failing that, the rate of interest be limited. As both these courses would, he said, be easy of evasion, he suggested that the Fublio Trustee be empowered to guarantee payment of debts inourred by natives for necessaries, and then deduot from rents the amounts due to the borrowers.