Manawatu Herald. SATURDAY, JAN. 27, 1894. Cheap Money.

Manawatu Herald, 27 January 1894, Page 2

Manawatu Herald. SATURDAY, JAN. 27, 1894. Cheap Money.

♦ - The Government are making a great blow about their intentions of securing cheap money for fanner*. It is not only fanners who need cheap money just now, for though wo have a Liberal Government very capable. in talking and promising we are never-the-less experiencing particularly hard times, with an outlook, for the next few months, of as bad if not worse than the present. During the period needed to con vince capitalists that it is safd to lend their money to a socialist Ministry, it is probable the farnur will have obtained money at any price, as, so our leading men tell us, ;he land should pay all taxes. The difficulty in paying these amounts demanded from time to time by the Government would not be so hard if money could be obtained cheap, but the fact really is, owing to th> peculiarly one sided legislation of our Liberals, that money is dearer and scarcpr now than it has been for some years. The G >vernmpnt know not what they purpose doing, bowever much they may say, for though it is, at present, to their interest to cheer the small farmer up with visions of large loans at small interest, the result will be as nothing. If, as they assert, they desire cheap money to lend to farmers who are to receive it without further safeguards than the balance of the value of the freehold, we cannot j undei'stand their selecting farmers only for their philanthropy, as others have plenty of margin as security in other walks of life : the trader has his stock, the townsman his dwelling, and so < n, for which undoubted value could be secured : why should these men be debarred from obtaining cheap money ? The business of State aid to settlers has been acknowledged long before now, but only given as a means to an end. As we understand the proposals of the Governraenfc any land-owner ought to be able to secure a loan upon his property at a low rate of interest provided he can show double the value of the amount of loan required. If this is correct we unhesitatingly say that the Government are not only improperly interfering with the laws of supply and demand but they are doing the settler but little kindness. To tax the land up to the hilt and th<>n offer the land owner cheap money on mortgage of his piopprty to ray it with may be business, but to the farmer it will be bad business, as, should he take the loan he will not so quickly appreciate the diifc of the present ruling politicians. Direct taxation is much the healthier | system as it brings the charges I | clearly and nnnvstakably before the taxpayer, nnd in just ths same l manner a little difficulty rxperienc d in scraping the charges levied upon I the land will mnke the farmer a little more cautious as to whom he ; intrusts the guidance of his affairs. ! Cheap money is a blessing when properly lent and used, and in ! England land-owners have for years j obtained cheap money, secured by i Acts of Parliament as first mortgages upon their property notwithstanding the fact that prior mortgages were already registered, when such advances have been nped solely in ' improving the value of that pro- ; perty. The many land drainage companies in Lmdon were worked under these Acts and were the source of very much advantage to the land-owner, bis tenant, and the

district. It is possible to work the advances to colonial farmers in tho. same .manner and the money advanced on the* security of the land, at a low rate of interest, should be used simply for improving the value of that land. This would not necessitate the objectionable principle of only advancing up to half value of the land, as the "loan would, meA iti developing the land, become a further increased asset of the whole security. Making ad vances for improvements only, would be oi' the greatest help to settlers, as !it would compel them to Make the j | best Use of the money obtained, and j ) instead of causing- them to' create aj j burden for after years, it would en- ! I able them to secure an earlier return ! from their property. It might be possible, if loans are granted without j restrictions, that the sums so ob- 1 tained might be used, as we have suggested, in paying taxes, or in building mansions, in travelling, or actually chucked away in gambling. We may be accused of taking an unpleasant view of what a farmer might do, and w^ do not desire to sugggest that he would be* generally, guilty of waste, but we do think it very possible that he would not use it to the sole advantage of the land, which should be the only excuse that the Government of any couutry -hould go out of their way to treat him exceptionally to other taxpayers. The Government must insist on a proper expenditure and supervision on loans to farmers or they must be in a position to treat every borrowing colonist alike. When the public get down to these points it will be wise to still urge that cheap money, if it is possible, be obtained, but "it will take a great deal of the gilt off the utterances of our politicians. So may it be.