STATE ADVANCES

Hokitika Guardian, 7 May 1929, Page 2

STATE ADVANCES

PREMIER'S PROMISE. (By Telegraph—Per Press Association.) NEW PLYMOUTH, May G. A reduction in the near future of the rate of interest to he charged for advances to settlers, from five and a-lialf per cent, to live per cent., and later m reduction from five per cent, to four'and a-half per cent, was forecasted by the Prime Minister to-night, when dealing at his civic reception in New Plymouth, with the Government’s policy. Sir Joseph Ward said that it was evident that the country still wanted a lot of capital 'for land development, and the intention was to push steadily on with his party’s project of obtaining sixty million sterling over a period of years, and of making this monel available for settlement at the cheapest possible interest. While the 'Government was still pursuing its election policy of lending money to the settlers, lie hoped before long, that the rate of interest would lie reduced to 5 per cent., and later to 4?, per cent. Had it not been 'for the misfortune of such a large sum of the public debt requiring conversion when the United Party came into power, the money would have been lent out at four and a-quayter per cent from the start. He said that a sum of £1,700,000 was available at the present time at 5i per cent, to settlers who had security and who had their valuation fixed up. During the twelve months prior to the present Government coming into power, the sum of £8,000,000 was advanced to settlors and workers, hut the arrears of applications had amounted to many millions. During the past fortnight, lie added, it had been disclosed that all of those arrears were now overtaken.