HOUSES FOR COUNTRY WORKERS.

Manawatu Herald, Volume XLI, Issue 2054, 13 November 1919, Page 3

HOUSES FOR COUNTRY WORKERS.

Mr E. Newman, M.P., has received the following letter from the Minister for Finance: —“Dear Sir.— With reference to the notes .you recently left with me in connection with the Government granting to local bodies in the country equal, if not better, opportunities to obtain money than the cities, I have consulted the Superintendent State Advances Office "in the matter. There are two questions involved in your notes: Firstly, the limitation of the rate of interest which local bodies are allowed to pay' for loan moneys; and secondly', the question of financing local authorities under the housing scheme.

“With regard to the first, the Government has power to fix conditions regarding the raising of money, and they have fixed 5j per cent, as the maximum rate. For'the Government to raise it to 51 would hot be advisable, as it would lead generally to the rising of the rate of interest throughout the Dominion.

“As far as the State Advances Office is concerned, the limit of their advances to local authorities is £IO,OOO in any year. They can lend that sum at 41 per cent, at present, but I know of no means, by which large sums of money can be raised at 4J per cent. “Two applications have already been received from local authorities up to the limit, £IO,OOO, under the Housing Bill, and there is no doubt the Board will grant these applications, or any others that may be made within the limit —41 per cent. When the present sums arc; exhausted, it is possible that the money market may be easier, but it is very much doubted. —Yours faithfully, J. Allen, Minister of Finance.”