LAND BANK FAILURE.

Shannon News, 23 February 1923, Page 4

LAND BANK FAILURE.

PREMIER MAKES A COMPARISON. •'.9 .

EASY. LOANS FOR SMALL SETTLERS.

I WELLINGTON, ast Niglit. I After referring, to the failure of the ! Danish Landmanclsbank (Land Bank), J "which information Mr. Massey said; t came from the journal’ bt the Empire * Association, the Prime Minister went ion to say: “ Front other sourceb, I j learn that the principal business of l thi§ bank was in connection with mart. { gages on land, hence the.name “ Land; mandsbank.” It may not be put of place if I. mention avhat, as Minister of Finance, I have arranged for lately, by way of increasing'the usefulness of, the* State the Advances Department.. Capital has been increased by

’£2,000,000, and a. branch has been es_

tablished for the. purpose of lending ! to. small settlers; on chattel security, and is now in operation. I have given instructions to the head of the department to increase the amount, Avhich may be advanced on mortgage to set. tiers from £IOOO to £2OOO, and this is now being acted upon, the .rate' of interest will be as low as it is possible to lend it, without causing loss to the State, and so far as the mort gages are concerned, in-no, case will it exceed 51 per-cent. It will mostly be 5 per'cent., with a 1 per cent, rebate for prompt payment.. The rate of interest will, of course, depend on the , rate which we have to *pay for bor_ rowed capital. I expect very considerably to increase the capital _ during •the next financial year.. With the enormous amount of lending which is done by the Public Trust Office and the . Government Insurance Office, along with the State Advances Depart.' •ment, matters _should be very much easier for the "bona fide settler, who' lias satisfactory security to offer for the amount which he may require to raise in connection with his business.”