STATE ADVANCES.

Hokitika Guardian, 14 March 1924, Page 1

STATE ADVANCES.

MR MASSEY OX THE POSITION. WELLIXGTOX, March If! The following statement was made by the Prime Minister to-day regarding the operations of the State Adi antes Department. ••When applications are received the first thing done with them is to refer them to the Valuation Department so that the value of the securities offered may be reported upon. When such report comes in it is referred to the hoard set up under the Advances Act. The hoard considers each report exhaustivclv and recommends accordingly to tin* Superintendent ol the State Advances Department, with whom re-

sponsibility for granting a loan or any part rests.

Dp to March ii in the present iinancud war have been grained loans

to icpys borrowers amounting to L'o.:>i)(-,i:-:!. Tlvrc arc still a largo number of hums authorised Where amounts have not yet been paid over. 'Mine thousands ol applications are waiting to be dealt with. Applications for loans will be dealt with ill the onler in which l bey have been received, but the department- have sufficient applications on hand to occupy their intention for some months to come. The object ol the amending Act of last vear was

■]) To assist settlers who, though possessing suHieienl security had difli- .■ >; IVy iu obtaining the loan money they ivquircd to enable them to develop tlcir holdings. (g) To assist workers to become owners of their own homes.

Hi) To make as much provision as lu-sible lor the term of the luornmium coming to an end next Decent-

I think it must he admitted that a vcrv great deal has been done to comply with those objects. The Department will carry on. hut it must be obvious that the present rate of lending cannot lie maintained, for more than one reason. The Government will not not be a party to creating anything in the way of a boom. There is a tendency that way at present. Wo have enough money to go on with lor some time, but I have already staled that the financial outlook is not good. Monev iu large sums is much more difficult 'to obtain than was tin* case even six months ago. The public ,cam ly need be told that lending must lie in proportion to supply ol capital. Taking the facts I have mentioned into consideration the Department must slow down until the present arrears have been overtaken. \\ hen ihat lias been done fresh applications will be entertained. I may poinL out llint from additional capital which lias been lent out recently there will be a considerable amount of money coming from repayments and interest, which will be re-lent to those requiring borrowed capital for the purposes mentioned bv the AH:. The latter will, of

miirse, be supplementary moneys which we have in band and any other moneys which may.from time to time h,. raised for lending purposes.