RETURNED SOLDIERS' LOANS.

Taranaki Daily News, 8 October 1920, Page 4

RETURNED SOLDIERS' LOANS.

The statement made in the Home on Wednesday by the Minister of Lands (Mr. Guthrie), relative to the new instructions in connection with advances to returned soldiers, shows that the Government's policy is profiting .by the experience gained in the past, and that an attempt ie being made to apply sound business principles to the work of settling the returned men. The decision to cease making grants for the purchase of houses, save in exceptional cases—and these should be very exceptional—is tardy, but none the less commendable. The previous policy whereby applicants were granted •» larger loan on the purchase of a house than for building one was incomprehensible to ordinary minds, , besides which it intensified the acuteness of the housing shortage, while the new policy will help to relieve that shortage, afford; employment to workers,'and make the available funds go much further if watchful care is exercised and only essential needs met, the Government taking care that the economical methods will be adopted. Another lesson the Government has at last learned is that the practice of purchasing aingle farms has led to the inflation of land values, which seriously handicap the soldier settlers and fail to increase production. It is now proposed that two or more returned men may join in purchasing land suitable for subdivision, thereby making for greater production, although in cases where a single applicant can satisfy the Department that he .-possesses sufficient private capital to provide the necessary margin of security, ho can apply to purchase a farm. All things considered, it would certainly be advisable to discourage, as far as possible, this competition for single farms, and to encourage the subdivision of large holdings, a policy that should have been vigorously pursued by the Government long since. Until this urgent requirement is systematically taken in hand on compulsory lines, the end in view will not be attained. The Government has undertaken to find land for the returned soldiers, yet the trend has hitherto been in the direction of the soldiers finding the land—at very high prices—and the State has merely financed the operations, with the result that the available funds were speedily depleted. It is quite conceivable that thp Government is reluctant to adopt a thorough policy of compulsory subdivision, but unless this is carried out there will not be enough land for the returned men. The regulation as to mortgages should meet with approval, and it is reassuring to find that advances for stock, implements and improvements are to be dealt with as usual. The Minister stated that everything possible is being done to stop speculation or trafficking in land held by returned soldiers. This is a matter on which the Department cannot be too strict. iSoldier settlement bids fair to be an important 'State asset. The men are meeting their obligations very satisfactorily, and if the proper steps are taken to obtain the land still required at reasonable prices, the asset will be all the greater.