THE SOLDIER SETTLER.

Hokitika Guardian, 15 August 1923, Page 1

THE SOLDIER SETTLER.

WESTLAND BAND DISTRICT. The following is a summary of the reports of the Inquiry Board relative to the soldier settlers of Westland Land District:— The soldier settlors in this district took up and bought their stock in most cases (luring the period of high prices. Generally speaking they had little or no capital of their own, and all their operations were carried on with borrowed money. So long as the high prices lasted they were able to pay their way. but the slump of two years ago made it difficult for them to carry on. On the whole they have come throgh the ordeal as well as could be expected ,and, given fair prices in the future, 75 to 80 per cent, of them should win through. The inflated prices excited every one. and there was no sufficient realization that this good time could not last. This has caused less prudent management of their farms by the .settlers, who in many cases have incurred monetary obligations without sufficient regard to the fact that interest and repayments have to be met. Tin* Department's valuations of land arc in general very sound and not inllated. but many of the settlers who are now in difficulties bought their land at high prices above the Department’s valuation and against the Department’s advice, and gave second mortgages for the balance of the purchase money. Tn these cases the second mortgages, owing to the drop, have ceased to have any value.

The rise in the price of dairy-pro-ducts, wool, etc., has greatly improv'd the prospects of those settlers who have in any degree been holding their ovn, and if the present values are maintained we would expect a 75-per Mil. to SD-per cent, number of successes. The Board was asked lo state what action should be taken in regard total Those settlers who have proved themselves capable, industrious, and faithful in the ohservame of tln ir obligations so far as their resources perniii.ted : HA those settlers who have failed to make the most of their opportunities > The reply in the case. of Westland was: (a) In our opinion those -.('tilers whose finances are not equal to their obligations would he best assisted by reducing, according to their t ircumstancos, the rate nl interest. either for a term or permanen • | v . basing such reduction upon the present value of their land, stock, etc. I he chief dillieidty will he the s.aund mortgages. as il cannot he exp -eted that tin- State should make sacrifices to make them good. In many cafes the amount of tin' second or third mortgages must be regarded as wholly lost, as the drop pi price of land has extinguished their value. In others The second mortgagee should co-opera it- in reducing his. interest or principal, or both whine necessary.

it would he better for the State to make some sacrifice in preference tu realizing. A good settler will lie put olf his farm; realisation may probably le.-ult in a loss, which had better he mode for a proved settler, who. with reasons tor assistance in the maniici above outlined, might become a success. and who otherwise will be thrown on the world to start nlrosh.

(b) We cannot see that the Government should do otherwise than realize their securities to the best advaiil.ige.

On the subject of u lint form of assistance (if any) financial or otherwise which should be given, the reply nilectmg Westland was-Wo are of opinion that in place of money advances it would ho better to help by remission nr suspension and postponement of payments accruing due. according to the circumstances in each case. We think the settlers are not sufficiently conscious of the fact that every additional amount burrowed has to be paid back with interest, thus adding to their a initial burden. B.v rendering assistance in the way indicated the settler would realize that it is out of his earnings that lie must meet his obligations. and we feel sure that this course would result: in mure eniviul expenditure and better management. Hverv case has its own peculiar feature. and it would be impossible to devise a rule that would meet every condition. Me suggest that the Latin Board should be given wide discrctiunarv power to enable it to deal satisfactorily with the eases entiling before

We slowest interest instead oi capital reductions, lor the ioilov.mg reasons: (T) It would discourage second mortgages and preserve the States capital value: <2! it is a flexible and ensilv :*.(!jiistoti irift!m<l of jissista net*; (3) protect tlic Stnic’s interest in of sale hy the settler; (!) can he capitalised and final payment postponed when Lin- prospects justify such a

coin's*. . Writing <m M:ii*<•!» !•)-•». l- I '-' r • umissicuiT : I ( mu II I .Minis at lloiii iik:i. in forwarding hit rc-pn c to t ltf Ir-S.iTcliii'v ::l I .Minis, says—ln ne- (.(■ ftlf- iir-o wit ii instructions received hiTC (111 tiu> 3Hth.' O.'lulkt. 1 !*-!-• i i'oi'v.iril herewith tin.' Hoard u) liu|!iii y report. , Tin* vcymi was ilisciissi'rt »iv t*u* id with tin' Board of Inquiry ;,i the Land Roanl's meeting on the 21st. ultimo mill finally c■onsidered at ill!' moilt lll v meeting "•) tlu- '2lst. mst. Tim | ii<,iiirv Board, as yon will sir. Inis investioato'l ami reported on t'.vent v-foiir individual oas.es. Hi'' '“'in nailv ion. ill's willi the report.. Lilt in Casas of the following soldier sett let's it makes the special ret oinmeiidntions given opposite ear i snl«lit*r settlor's nsinu* (not printed). \ schedule numbed to tin- report, shows that the tase of '->•> sohliei settlers wore enquired into in "e. land. In these cases there was a present loss of £335 owing to the land lanip; bought nnder the Unsh and Nwamj.Land Act. and in addition t.noii^. postponements of install,tents there '••’' ’ further loss involved,,. di". Jgarding the eases ul M soldun m • • in Westland who did not male an.' >' o't Tr l.y tIK- Imm L, r ,l .lK,e i» ... "™“i'iff revenue hy way ol tent ol in ■ nt the end of the form ~ total loss of £2.SfM.