The Temuka Leader TUESDAY, MARCH 30, 1886. LOAN COMPANIES.

Temuka Leader, Issue 1486, 30 March 1886, Page 2

The Temuka Leader TUESDAY, MARCH 30, 1886. LOAN COMPANIES.

A correspondent, who signs himself "Tapu” and dates his letter from North Canterbury, has brought under our notice the report of the annual meeting of the New Zealand Land Mortgage Company, held under the presidency of .Edward Stafford in the Cannon Street Hotel, London, on the 15th of January last. This Company had then been only 23 months in existence. For the first 11 months they lent on land in New Zealand at the rate of £29,162 per month, and for the past 12 months at the rate of £29,635 per month. At that rate, they must have by this time invested about three quarters of a million in New Zealand, and evidently they are well satisfied with the result. In this colony if we attempt to start any industry we must wait between three and five years before we can get any return for our money, but the institutions established in London to lend us money pay from the very start. This Company, which was established less than two years ago, has been able to declare a dividend of 7 per cent., place £SOOO to the reserve fund, and carry £3OOO forward to next year’s account. Sir Edward Stafford said they could have easily paid 10 per cent, if they had deemed it advisable, and without doubt they will be able to pay 15 per cent, next year. For the first 11 months the people of England lent on the debentures of the Company £19,627 per month, and for the past 12 months £21,579 per month. Thus more than

two-ihirds ot tno vtonuiany s money lias been borrowed, and on ibis, by a system of thimble-rigging, they amass wealth. Sir Edward Stafford was a wise man in abandoning sheep-farming in New Zealand for such a profitable business as , this. The report of the New Zealand Loan and Mercantile Agency Company’s annual meeting shows still a better state of things for the shareholders. At the meeting held in London on the sth of February last, Sir James Ferguson presiding, the following resolution was carried ; —“ That the report and statement of accounts be adopted, and that a dividend ot 10 per cent, for the halfyear, with a bonus of 5 per ct-nt., be declared, which, with the interim dividend of 10 per cent, paid in July last, 1885, will make a distribution of 15 per cent, for the year; that £15,000 be added to the reserve fund, thereby raising it to £250.000, and that the balance of profit, £14,965 Is sd, be carried forward.” A dividend of 10 per cent, and a bonus of 5 per cent, equals 15 per cent,, and then theie is nearly £30.000 to spare. These are the profits of the year after paying salaries and allowing for bad and doubtful debts, and it must be admitted that they are very fair. Tim poor, unfortunate farmers of this colony are working themselves to death and denying therasulves many of the necessaries of life, while all the fruits of their labors go to swell the revenues of such institutions as we have referred to. According to the report of the N.Z. L. and M. A. Co., they can borrow money in England at from 4 to per cent, on their debentures ; the people ot this colony know the rate at which they can lend it here. There are some interesting facts connected with these companies which we ought to study. First, it is most remarkable that the Directors of all our monetary institutions live, and hold their meetings, in London ; it is there the head offices are, and of course it is there the money accumulates. We could do what these Companies are doing by means of a National Bank, and keep the money in the colony. Another thing which must appear to the reader as very remarkable is that these Companies, by means of debentures, which are only pieces of paper, can get any amount of money at 4 and 4£ per cent. Those who object to paper money would find it difficult to explain how the paper of these Companies is good, while paper having the whole colony as security would be bad. At any rate it is much better for anyone to invest his money in shares in these Companies than in New Zealand real estate. AROWHENUA TOWN BOARD, Bellgrovb Cottage and its proprietor have risen suddenly into greater pro* tninenco than all the letters of the alphabet could have given. Few of his neighbors would have looked to Mr Edgeler as their leader, yet he has Jed them successfully. It has been the dream of his life for some time past to bring Arowhenua under (he operation of the Town Districts Act. He tried it when Temuka was proclaimed a Town District, and got laughed at, but that did not daunt him ; he has been fishing up facts and putting them together since, till at last his labors have been crowned by making the discovery that £842 15s 5d belonging to the settlement is in the hands of the Government, and that it can he had for the asking. But this is not all. In many ins'ances only one instalment has been paid on the sections, a great deal of the money is yet due on them, and as fast as it is paid one-third of it will be given back to the Town Board. There is also a large number of sections yet unsold, and one-third of the price of them wiM come back to the Board. Thus the Beard is bound to have a permanent revenue coming to it independent of the rents of reserves, rat»s, dog-licenses, ote. With regard to the statement made in the letter which we publish elsewhere, to the effect that the money is lying to the credit of the Road Board, it does not appear to us that that body can touch it. Clause 127 referred to in the letter is as follows :—“ One-third of the price of any block of land disposed of on deferred payments under this part of this Act shall be handed over to the County Council or Road Board of the district within which such land is situated, to be expended in the construction of roads within, or to open up the blocks for the benefit of selectors. And one-third of the payments made from time to time by the selectors shall, as the same arise respectively, be paid over to such County Council or Road Board, as the case may be. The plans of proposed roads shall in all cases receive the sanction of the Land Board of the district.” It is evident the Road Board could have received the money long ago, if they had looked alter it, but it would have been only on condition that it would bo spent in the area comprised within the Arowhenua township. The Boaid will cease to exercise authority in the district as soon as the place is brought under the provisions of the Town Districts Act, and cons>quently could not spend the money there, even if it got it. The County Council would be in a better position to step in than the Hoad Board, because while a Town District ceases to be a part of a Road Board the moment it is proclaimed, it slid remains a part of the County. The authority of the County Council, however, appears to be limited to main roads and levying rates, and would not embrace the expenditure of the money referred to. It appears to us obvious therefore that though the Road Board and County Council are mentioned,

wliile such an nstitulion as a Town Board docs not appear to be contemplated, the local governing body must get the money. The Town Board will lake over the unctions of the Road Board, and will be entitled to the funds. It is evident the Road Board could not appropriate the money to any other nee than to make roads in the Arowhenua township, and consequently it would be no use for it to get it. There can be very little doubt but that the Town Board, as soon as it comes into existence, will receive the money, although it is not mentioned in the Act, However, there may be some regulations or laws bearing on village settlements will) which wc are not acquainted that might throw impediments in the way, and it would be well for those interested to sift the matter out, and be sure of what they are doing.