THE Wairarapa Age MORNING DAILY. MONDAY, NOVEMBER 1, 1909. ADVANCES TO SETTLERS OFFICE.

Wairarapa Age, Volume XXXII, Issue 9637, 1 November 1909, Page 4

THE Wairarapa Age MORNING DAILY. MONDAY, NOVEMBER 1, 1909. ADVANCES TO SETTLERS OFFICE.

The fifteenth annual report of the Advances to Settlers Office emphasises in a most striking manner the great value of that institution to the country as a whole, and more especially, of course, to the struggling settler. A further record was established during the past financial year in the amount uf business transacted, the applications numbering 4,471, amounting to £2,050,252, as against 3,183 applications, amounting to £1,668,135, for the previous year - an increase of -1,288 applications for i £382,117. The advances actually granted during the year numbered '3,043, amounting to £1,493,835 12s, which exceeds those of the previous year by 672, amounting to £296,419 2s lid. The Board had up to the 31st March. 1909, authorised 25,534 advance?, amounting to £9,206,925. Applicants to the number of 2,794 declined the grants offered them, amounting to £1,139,810, so that the advances authorised to the 31st march,, 1909, numbered 22,740, and amounted to £8,067,115. The total amount of advances actually paid over during the year for both the Advances to Settlers and Advances to Worl*ers Departments was £1,792,019 18s sterling. The report of the Superintendent states that for the year the average freehold advance is £sll, the average leasehold advance is £446, and the average freehold and leasehold (combined) is £1,114. . Eighty-five per cent, of the advances made during the year was for loans net exceeding £SOO. The total sum raised by the Government on debentures for investment on mortgage is £5,158» 800 out of £6,000,000 authorised under the Act. Thirteen thousand one hundred and ten mortgagors are now I indebted to the Department to the extent of £5,118,041 4s 4d in respect of principal moneys, an increase during the year of 1,397 mortgagors, amounting to £932,021 Is Bd. The gross profits for the year ; ended 31st March, 1909, were £74,679 18s Bd, and the cost of management and expenses of the Department £9,969 lis 7d, being 0.19 per cent., or 3s lOd per £IOO on capital employed (the cost of the previous year was fl.lß per cent., or 3s 7d per £100). The net profits amounted to £63,835 19s 3d, an in crease on the previous year of £12.450 16s lid, notwithstanding the large concessions granted to the mortgagors. A sum of £20,530 18s i 8d has been added to the sinking i fund established under section 27 of ] "The Government Advances to Sett i

lers Act, 1908,'" bringing the total amount standing to the credit of that account to £44,189 18s Bd, appro-

priated out of profits. Mortgages under "The Land Transfer Act, 1908," and further charge mortgages are prepared and completed in the office at the nominal cost, including disbursements, of ss. About 3,219 mortuages have been so completed. This effects a large annual saving to mortgagors, and avoids a very considerable loss of valuable time for settlers, owing to the money being paid over at the nearest moneyorder post-office free of exchange. Seventeen freehold and eleven leasehold securities have for various reasons been realised by the Department up to the present time. In most cases fairly good surpluses over and above the advances owing to the Department have been obtained and refunded. In one case this year a loss of £92 has been made. It is the fiist since the inception of the Department. There are, however, on the Department's hands two securities which are not satisfactory and may ultimately prove a small loss/ but it is not possible yet to predict what may be the final result. Mortgagors continue to meet their half-yearly payments of interest and principal in a manner crertitable to themselves and highly satisfactory to the Department, the stringency in the money-market apparently not affecting 'their ability to meet their payments to any noticeable extent. The total amount of interest collected for the year amounted to £206,388 Is lOd, an increase on the previous year of £34,327 14s lid. The total amount of interest collected to the 31st March, 1909, amounted to the sum :>i £1,422,319, in addition to the repayments of principal £3,130,498. making a grand total of £4,552,817, besides a large sum for insurance premiums, fees, etc., only a very trifling loss hiving been incurred; at the same time the amounts collected average only about £l2 of principal and interest combined per annum from each mortgagor. The vol'ime of business transacted during the yea% including the Workers Branch, has, like the preceding tew years, been very larg», and a word of praise is due to the staff and to the Valuers for the care and attention given by them to their work, which has contributed largely to the very satisfactory results of the operations ot the year.