The Chronicle, PUBLISHED DAILY FRIDAY, SEPTEMBER 8, 1911.

Horowhenua Chronicle, 8 September 1911, Page 2

The Chronicle, PUBLISHED DAILY FRIDAY, SEPTEMBER 8, 1911.

! THE STATE AS LENDER. A good deal of local and genera interest attaches to' the operation i. -of the State Guaranteed AdvanceOffice, which nas done so much t facilitate the settlement and devcl opment of both country and tow lands in New Zealand. Regan-din, that office's Advances to Settler.' Branch, which has been opera tin, for the past seventeen years?, tli .superintendent reports, in a Pai lianientary paper dated May last ( L-li'at -Ji)7o applications for loans • amounting to £2,122,749, were re : ceived during the year. Tlio m:" , ranees actually granted nunibere .■',18:3, amounting to £1,204.310 which exceeds those of the previou year by 438, and the amount b ' .£109,190. The Board had iron the commencement of its business ni lo the 31st -Unroll, 1911, authorise! ■32,30-j advances, amounting to £11, 528,145. Applicants to the nnm.be of 3,415 declined the grants offeree I Llipm, amounting to £1,347,910 \ making the advances authorised t< the 31st March, 1911, 28,891, an< the amount £10.180,235 net. Tin total amount of advances actuall; naid over during the year for hot! the Advances to Settlers and Ad vancos to "Workers'branches was £1, 012,070. For the year the average I freehold advance was £377, the aver j age leasehold advance £379, and tin | average freehold and leasehold: com i bin<?d £-105. The total sum raisec by the Government on debenture ■ for investment on mortgage since | the, Department was stnrtcd is £7, , 094,935. Sixteen thousand and live j j mortgagors are'now indebted to the j Department to the extent of £6, j 145.229 Is 3d in respect of principa moneys, an increase during tho veai | of 1,497 mortgagors, owing £477, J595 13s 4d. Th e g rosfi prcmts ! the year ended 31st March. 1911 i were £71.324 10$ scl. and the cost 'of management and expenses of th< | Department £10,830 18s 6d. heinr I 0.15 per cent., or 3s per £100 or j capital employed the same" as the previous year. The net profits amounted to £60,440 10s. A sun of £70,949 7s has been added to the sinking fundi established under secI tron 30 of the State-guaranteed AdjvancerAct, 1909 which, with £3,j73t 9.-. interest earned and added tc j the fund held by the Public Trustee, | bring the total Amount standing tr j the credit of that account to £176,- ; 311 14s Bd. Nineteen freehold and j thirteen leasehold securities have foi i various reasons, during its existence, ; been realised by the Departmnct.' [Tins year losses to the extent of £53 Is 9d have been made. There are. however, on the Department's | hands two securities which are not I satisfactory. At present they are leased at a- nominal rental, awaiting a favourable opportunity for realiza° tion. Mortgagors continue to meet their half-yearly payments of interest and principal in a manner satisfactory to the Department. The j total amount 0 f interest collected ( for the year amounted to £272,320 6s Bd, an increase -previous year of £30,855 4s 9d. The total amount of interest collected from the time advances were first made up to the 31st March 1911, amounted to the simn of £1 ,'930,104, in addition to J4ie repayments of -principal £4,402.740, making a srrand total of £6,338,844. Applications are now being carefully examined .when first [received (before a, valuation is ordered. If the grant of a loan is con* ■si'iered doubtful, the facts are sub""tteato the Board for preliminary consideration. When the property offered is not considered satisfactory' for ,a loan>4he application is declined and the.valuation fee returned. ■ n this way delays are avoided, and loss of the fee-which to a, polar man is. considerable-prevented. The term for repayment of small loans has been found to he too long, and short- term loans -have now been provided for. Advances , a ,re grantedor; first-class recurities for a term of thirty-six years and a half on second-class securities for a term of thirty year's, and on third-claw secnmtjcs for a term of twenty « These terms have found favour . wMi .46rww«rs f and there

have been few complaints about the change. In some instances borrowers have asked that-the loans be grouted fen- tonus, not exceeding twenty years, although entitled to the loans for longer terms. An Inspector of Securities has been appointed to the stall' of the office'/ an.d lias now taken up his duties. Already good work is being done by him, and as time goes on a- considerable benefit must accrue to the Department from his periodical inspection of securities and districts. Jfho , volume of business transacted during the year has Again been very large and thanks are due to the stafT for tho znal shown in the discharge of their duties and their devotion to the Department's interests. ' From the foregoing facts il; seems clear that this branch of the Department is doing -a continuously valuable work, and one that Jims contributed very materially to the state of comparative success at whtob. this country has arrived.