The Chrønicle LEVIN. MONDAY. JULY 17. 1916. THE STATE AS MORTGAGEE

Horowhenua Chronicle, 17 July 1916, Page 2

The Chrønicle LEVIN. MONDAY. JULY 17. 1916. THE STATE AS MORTGAGEE

A sum of money amounting to nearly fight millions of pounds sterling j.,njo been advanced by the New Zealand Government to settlers, through the State Advances Office, since passing of tlie State Advances Act. The mortgagors total 19,890, and between thini tliev are Viable for £7,912,397. In return for this money, an<l quite apart from the low interest charged on the loans, the State must have benefited to the extent of £2 lor every £1 lent, by reason of the increased productivity of the land tihat was opened up for pro fitable farming through use of ihe borrowed moWy. Tt is of passing ,n_ terest to note that over fmvsev.vithe of the total borrowings were sac against freehold securities. The figures are: On freeholds £5,656,680; on leaseholds. £2,117,06.3; on freeholds and leasooids combined £168,653. We have condensed the information foregoing from the annuel report of tho Superintendent of the State Advances Office (Mr G. F. C. Campbell). In a note accompanying his. report tho Superintendent chows that the gross piofite for t!he year ended Slut March, 1916, were £73,766, and tho cost of management and expenses of the branch £9,727, beingO.lo4 per cent or 2s ild per £100 of tße capital employed. The neit profits amounted to £62453 of which the Bum of £30000 has been applied in writing down loan charges. The sinking fund established under section 26 of the State Advances Act, 1913, amounts to £571,630, inclusive of the amount held by the Public Trustee (£302,901). One leasehold and four freehold securities were realized by the Department during tho year. Losses debited and unpaid instalments in 'Tespect of mortgaged properties written off amount to £584.

Regarding the Advances to Workers Branch of the office. the superintendent reports that a sum of £2,562,904 h«s been advanced, only £106,286 of which was not on freehold security. The advances to workers actually paid over during the year ended 31et March, 1916, on freehold end leasehold are a« follow-*x On freeholds 802 £269,690 On leasholde 23 £5.990 Tlie gross profit® for the year ended .list March, 1916, were M <17 :md the cost of management and expenses of the brandh £3.141, being 0.155 per cent or 2s 6d per £100 of the capital employed. Tlie nerfc profits amounted to *£12,1(19. of which sum £11,108 has heen applind in writing dowm loan chinrgec. The sinking funs established under section 26 of tlie iState Advances Act, 1913. amounts to £73.767, inclusive of tlie amount held hv the PubTTfl Trtts-

tee (£2715). Four freehold and four leasehold securities were realized by the Department during the year. Losses debited, amd unpaid instalments in respect of mortgaged properties written off, amount to £126 18s '3d.

The least-satisfactory of the office's activities—that of tiie Advances to-Local Authorities Branch—is thus referred to by the superintendent:—"The amount actualiy paid over to local bodies during the year was £115,820. Local bodies are now indebted to the Department to the extent of £2.181,989, in respect of principal moneys. The. result of the year's operations shows a net loss of £9164, which is due to the unremunerative rate of interest at wlhieh the earlier loans were granted. It is gratifying to notice that the lose this year is only half of that which occurred tiie previous year. Owing to the fact that loans are now being granted at a. rate of 1$ per cent, I anticipate t'hat -this branch of fhe .Department's operation should soon begin to show a. fsmall profit. The sinking fund established under section 26 of the State Advances Act, 1913, amounts to £114,712, inclusive of the amount held by the Public Trustee (£48,151).