ADVANCES TO SETTLERS.

Taranaki Daily News, Volume LI, Issue 173, 13 July 1908, Page 4

ADVANCES TO SETTLERS.

A SUCCESSFUL YEAH. Interesting information concerning the operations of tlie Government Advances to Settlers Office for the year ending ilarch 31st last, was presented to l'ar-1 liament on Friday. The year proved a record for business transacted. 8183 applicants asking for £1,685,135 as against 2420 applications, amounting to £999,461 last year. This is an increase of 763 applicants and £0118,674 respectively. During the vear 2371 advances, representing £1,197,416, were made. Up to March 31st last 22,456 advances had been authorised, representing £8.003,930, but 2573 applicants had 'declined grants offered to them representing £1,065,980. 'Sixty-seven per cent, of the advances made during the year wen' for loans not exceeding £SOO. The net profits for the twelve months amounted to £51,385, an increase on the previous year of £641!), despite large concessions granted to mortgagors. The item, "Loan flotation charges," has been written off out of profits. Sixteen freshold and eleven leasehold securities have for various reasons been realised by the Department up to the present, and in no case has a loss been made. There arc no securities on hand at present, but there is one small loan, which is not satisfactory, and may ultimately lead to a loss for the first time. The interest collected for the year showed an advance of £20,088. The advances to workers branch shows that for the year 1170 advances, amounting to £206,305 were authorised. Forty-five applicants declined grants, the net advances authorised being 1134, representing £285,760. Seven hundred and seventy-seven inort-' gagors were now indebted to the Department to the extent of £203,155 in respect of principal moneys. The profit and loss account showed a debit balance of £661, an increase on the previous year of £228. This is accountable for by the fact that of the money advanced on mortgage during the year C 7y 2 per cent, was issued during the last six months, with the result that the source ffom which the Department looked for revenue was considerably curtailed. At the end of the financial year, however, in addition to interest received and accrued from investments made during the year, the Department will have *eceived a full year's interest on the sum advanced, and at the same time the management and office expenses would not be increased. This would enable the income to cover the expenditure and yield a profit.

ADVANCES TO WORK EH B. THE FIRST YEAR'S OPERATIONS. The first annual report of the Advaices to Workers Office states that the net advances authorised up t'O March 31, 1908, numbered 1134. The total advanced is £28,576. The average freehold advance is £265, and the average leasehold advance £l7l. The great majority of the advances are on freehold security. The total number of advances outstanding is 757, involving €203,155. This is divided as follows: Freehold 729 (£198.285), leasehold '8 ( £4870). The total sum raised by the Government in debentures for investment on mortgage is £205,000. The profit and loss account shows a debit balance of £228. This is due to the fact that over 67 per cent, of the money advanced has been paid out during the last six months, and all the preliminary expenses of the new venture have had to be met. At the end of the current financial year the office experts to show a profit.