The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGM0NT SETTLER. THURSDAY, JULY 10, 1913. LOANS TO FARMERS.

Stratford Evening Post, Volume XXXVI, Issue 55, 10 July 1913, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. THURSDAY, JULY 10, 1913. LOANS TO FARMERS.

A report on State loans to farmers recently presented by the Wisconsin -Board of Public Affairs, i s of rather special 'interest to New Zealand, as indicating that the progressive American people have not yet successfully reached the stage of finding State money lor loans to farmers, while the principle of Government rural loans has been in operation in this Dominion—and, lor a lessor time, in every State of the Australian Commonwealth. Wisconsin, it appears from the report of Commissioner Duffus, has attempted to lend money to farmers through the county administrations, but the scheme lias been futile. In the State referred to there a're great tracts of timber-country Ipft by the lumber-men, cut out and ugly, but good country for the right sort of farming if only capital is forthcoming to assist the would-be settler to stump and clear up the land. When the Wisconsin Legislature dealt with the position, it evolved the “County Stump-Bond Law,” which handed matters over to the county boards.

Among the vulnerable points is a provision prohibiting the county from assuming a general county liability for the loan money raised, and this is "here it differed from the New Zealand Advances to Settlers Act. The principle, in our method is that the guarantee of the whole State is behind the loan, while Wisconsin does not even offer the guarantee of a county district. Mr Dnffns’ report has something in say a hour the New! Zealand system, and quotes the totalj advances to settlers in Australia, up! to 11)10. as woven millions sterling, ami in New Zealand, up to 31st March, 11)1-2, as twelve millions; am!, thinks that the greater use of the j system in New Zealand may he par-i tially explained hy the fact that the, Australian States founded their lend-1 ing institutions from two to seven years later than New Zealand, and|

that populous States like Now South Wales and Queensland were the most dilatory. Duo emphasis is placed on the smallness of the losses under the Australian svstems. When a sys-

tem of State loans to farmers is suggested for Wisconsin, the usual object ion offered hv critics is that it

would 1)0 impossible to prevent unscrupulous borrowers from misusing them oney loaned to them. “Experience in New Zealand and Australia lias proved that this objection is mainly theoretical.” Air Duli'us pays this Dominion the compliment of remarking. The trouble in the American State is that the expense of securing a loan is stated to amount to more than 8 per emit. ;> year, and sometimes 10 per cent., and payments at these rates include no part of the principal of the indebtedness, and this, of course, is quite prohibitive.