INTEREST WILL BE LOWER

Sun (Auckland), Volume III, Issue 656, 7 May 1929, Page 10

INTEREST WILL BE LOWER

STATE ADVANCES PARTY’S ELECTION POLICY Press Association , NEW PLYMOUTH, Monday. A reduction in the near future in the rate of interest on advances to sellers from 55 per cent, to 5 per cent., and later from 5 to 45 per cent., was forecast by the Prime Minister, Sir Joseph Ward, this evening when dealing at the civic reception in New Plymouth with the Government's financial policy. Sir Joseph Ward said it was evident that the country still wanted a lot of capital for land development and the Government’s intention was to push steadily on with the party project of obtaining £60,000,000 over a period of years and making the money available for settlement at the cheapest possible interest. While the Government was still pushing its election policy of lending money to settlers lie hoped before long the rate of interest would be reduced to 5 per cent, and later to 45 per cent. Had it not been for the misfortune of such a large sum of public debt, requiring conversion when the United Party came into power money ■would have been lent out at 45 per cent, from the start. The sum of £1,700,000 was available at present at 55 per cent, to settlers who had the security and had the valuation settled. During the 12 months prior to the present Go verm,3i) t coming into power £BOO,OOO was advanced to settlers and workers, but arrears of applications amounted to many millions. During the past fortnight it had been disclosed that all those arrears were now overtaken.