ADVANCES TO SETTLERS

Hokitika Guardian, 1 September 1924, Page 1

ADVANCES TO SETTLERS

COYERN.MENT’S PROPOSAL. ADDITIONAL 000,000 PER -MONTH. WELLINGTON, August •_>!>. The following statement dealing with the provision of extra linanec for the State Advances Department was made by the Prime Minister in the House of Representatives this afternoon . “On account of the extraordinary demand by country settlors for money by way of mortgage on security ol their holdings, and also on account of the term of the moratorium coming to tin end in the not far distant future, the Government have come lo tlie conclusion that it will he necessary to render additional financial assistance to what lias been done during the last twelve months by the Advances to Settlers Department. I have therefore, arranged for an additional £ I00,(l()!) per month to lie made available for settlers from, September 1 until the end of the financial year. This will not interfere with arrangements already in existence for lending money by the department. Advances will go mi just as at present and at about the same rate. There will be no overlapping as between now what is proposed and what the department are doing now, except that we shall he able to clear off arrears of arrangements already entered into very much sooner than would otherwise be the ease. “As Finance Minister I have sufficient statutory authority to enable me to raise the additional capital. T propose to raise the money (L 100,000 per mouth) by way of revenue bills at comparatively short dates, intending to include the amounts ill tlie next loan which New Zealand will require to raise in the first quarter of next financial year. I have consulted our financial advisors in London, and they consider that with our credit so good its it is the scheme upon which we are working is quite feasible and presents no difficulties.

“Members will understand the purposes lor which this money is intended —the redemption of existing mortgages, assisting settlers to meet the moratorium, completion of purchases or ell'eetin.g improvements. By the arrangements that will he made, so far as it is humanly possible to judge there will be no loss to the Stale, and 1 am glad to think our credit will not be seriously affected.

“Then l is just one tiling that I do not quite like, though it seems to be impassible to avoid it, and that is by borrowing so much money in London for these purposes we are transfering the ownership of New Zealand lands to people outside our own country.

By the end of the financial year the position from the point of view of mortgagors ought to be considerably improved, especially if this season lullils its promise of being a particularly good one.”

Mr Harris (Waitemata) asked whether the new money would lie tinsel tiers iiiil.v.

The Prime Minister replied in the affirmative. The money was intended to get over the difficulty of the moratorium, and to provide more money for those who wanted more capital. Mr Ransom (I’ahiatua) asked whether any of the bills were to apply lo the New Zealand market.

.Mr Mas.-.'.' !•> id t bis wen Id n-t be so because to do so would-mean putting up the rate m interest, lie would prefer to borrow all the money they could gel in New Zealand only lor the reason he had mentioned.

“There was one point raised in connection with advances which I want to clear up.” said Mr Massey, “I have noticed several statements in the last dav or Iwo about Auckland being favoured in connection with loans. That is absolute nonsense. Loan- are granted not in proportion to population, but in proportion to the requirements of the population, which is quite a different tiling. It has to lie remembered that .Auckland provincial district is developing at a tremendous rale, and consequently more money is required tin there than anywhere else. As a matter of fact the population of Auckland represents a third of the population ol New Zealand as (ho present time. There is no lavouiitism and there cannot possibly lie favouritism. Anything of the sort could hardly be done without my knowledge, and il I beard ol any such thing it would, be slopped without further delav.”