The Gisborne Times PUBLISHED EVERY MORNING TUESDAY, AUGUST 20, 1907. ADVANCES TO SETTLERS.

Gisborne Times, Volume XXV, Issue 2163, 20 August 1907, Page 2

The Gisborne Times PUBLISHED EVERY MORNING TUESDAY, AUGUST 20, 1907. ADVANCES TO SETTLERS.

An important point in the administration of tho Advances to Settlers Act lias been drawn attention to by tlie Lyttelton Times. It appears that an idea has got abroad that persons borrowing money undor tlio Advances to Settlers Act for tho purpose of building homes for themselves or effecting improvements to the homes they already possess cannot obtain progress payments as the work proceeds. Under this erroneous impression a number of people wlio have required larger loans than are authorised by the Advances to AVorkers Act, or who have been ineligible for. the benefits of that measure, have turned to private lenders for the money they liavo required, and so have lost t-lie advantages of tlio “cheap money scheme.” Several cases of this kind were reported to Mr. Davey, tho member for Christchurch East, and that gentleman promptly communicated with the Premier about the matter. Sir Joseph W T ard has now replied that it is a mistake to supposo that no part of a loan granted under the Advances to Settlers Act can bo paid over until the work upon which it is to ho expended is completed. Such a restriction would, of courso, very seriously impair the usefulness of the measure. Progress payments can bo made under the Advances to AVorkers Act. The difference between tho two measures is that one is intended for tlio small borrower and the other for tho larger borrower. Tho applicant for a. loan under tho Advances to AA r orkers Act, whoso income must not exceed £2OO a year, may obtain £350 on highly favorable terms, while an applicant under tho Advances to Settlers Act, whose income is not taken into account, may obtain up to £2OOO. There have been complaints that tho Advances to Settlers Department has discouraged borrowers taking advantage of the measure is was created to administer, but it is probable that these, too, must have been founded on some misapprehension. No intelligent officer would he likely to drive profitable business from his doors.