Manawatu Herald. THURSDAY, MAY 28, 1895. Advances to Settlers.

Manawatu Herald, 23 May 1895, Page 2

Manawatu Herald. THURSDAY, MAY 28, 1895. Advances to Settlers.

JVluoh grumbling has been heard from those who sought advances from the Government and obtained them not. This was almost bound to be the case, and if all applications have been treated on the same lines we Are able to agree that the caution was advisable. Until time has past it will not be known whether the same consideration has been shown to those of the right " colour- "-as to those of the wrong colour, but we hope it has. We have always doubted, and still doubt, the advisability of the Government interfering i in'thfa direction, when the advances are to be made without stipulations. : It is always precarious work lending | money to near the value of the security, and the interest obarged by | the Government permits of little; or no margin for losses. If the Government persevere in advancing money to settlers on the security of their property, permitting them to use the sums so obtained in paying old debts, taking a pleasure trip abroad, or backing the favourite at any racemeeting, then no more than fifty per cent on the value is safe for the State to lend at such low interest, We have been told by the Treasure* that settlers want a larger percentage advanced than this margin. It i« on this point we wish to place our views before the public It is very often that a settler can tea his way to improve his holding if bibid

capital, but without capital he is unable to carry it out. He may possibly have a mortgage already, and in these cases the supplying of the money would be both adviseable and justifiable, if, which is everything, the improvements were carried out in a satisfactory manner. Wa can see no reason why the settler need disturb the existing mortgage, the expenses of exchanging it for a Government one would almost swamp any profit derived from lessened interest, but the settler would prefer to have further sums advanced at the lowest cost. The existing mortgage was entered into with the knowledge of the value of the property at the time the loan was made, and if further money was advanced and spent properly in lasting improvements, the original mortgage would not be harmed, and therefore there could be nothing to urg« against this second mortgage, the money from which was used on the land, becoming a first mortgage and placing the State in an unassailable position. A little difficulty might arise at the introduction of the scheme, until the first mortgages found their security was really improved by giving place to these State loans. The whole secret in the working is that the money must be spent in improvements under proper supervision when the whole amount applied for could be loaned. If the Government introduced such a Bill they would find an outlet for very large sums of money the securities for which would be undoubted. This is no new scheme, or the pet proposal of some colonial legislator, a similar law having been in force for the last forty years or more in England, and enormous sums laid out in under-draining land and erection of farm buildings. The utmost care would have to be taken that the work was advisable and properly carried out, but then in opening up new country the cases are so well known where earlier extra developement of a section would make all the difference between the settler making a comfortable living or starving. In such cases as these State loans at low interest would be of immense^ advantage and would materially assist in opening up our waste lands, and would afford a marked contrast to the present proceedings where it means only the small difference of two or three per cant interest the less to pay per year, gained to the borrower.