SECOND EDITION Wairarapa Daily Times. [ESTABLISHED 1874.] MONDAY, SEPTEMBER 1874.

Wairarapa Daily Times, Volume XV, Issue 4821, 10 September 1894, Page 2

SECOND EDITION Wairarapa Daily Times. [ESTABLISHED 1874.] MONDAY, SEPTEMBER 1874.

Tub Government Advances to Settlors Bill lias been published, and is perhaps less black than it has been painted, but still shows a dark side, First in irapovtauce is the clause for raising a million and a half per annum, This is not held to be borrowing by the powers that be, Of course the settlers will borrow from the Government, and the Government will—we wero going to say borrow—but as this is objected to, we will say find the money, The key-note of Mr Ballance's finance was non-borrowing. His Treasury Hunipty-Dumpty sat on the wall, and was respected by the Monarchs of the Loudon money market, But now Humpty-Dumpty is going in for a big fall, and the result must be a depreciation of New Zealand securities in the London money market. This is one of the pains and penalties attached to the Bill in question.

Of course the Government contend that this bonwini? is not exactly borrowing, that it is only a new kind of financing. This loan animal is a horse of another colour to tho prancing steed of old time Ministries. But will the gentlemen who lend out money discriminate between the millions wanted for public works and the millions demanded for advances to settlers. From their point of view the latter will be borrowing pure and simplo as much as tho former, They will realise that tho non-borrowing policy (lied with Mr Ballauco, and that so far our present rulers have been merely trading on his reputn. tion without following out his principles.

Wn heard of a man who, with i some ostentation, took the pledge in this town, and who is still regarded as a hopeful case, and a credit to the Temperance Party-but rumour 6ays that now and again ho has been seen to emerge quietly from a publichouse by a back entrance. Ho is, before the world, an abstainer; but apparently takes a little on the sly, The Government is in much the same position. They borrow—not a bit of it! but still they are getting where money is by a back entrance The mora} is, in ioth instances, the same! The man is -''an )he burst," and the Government is" on tho buys)," We need have no illusions, for the Government, like most people who have broken a pledge, will be worse than if they had nover taken it.

Tup new lending bureau is to be worked by Boards. The Centra) Board, consisting of high officials, will probably be' effective. The district consisting of officials of lessstanding,mnyflrni.aynotti;roout a success. It has been said that tho Minister of Lands himself made a bad bargain over a certain estate owned by a personal Wend dpar to himself. If Jupiter nods, how can we expect small local officials, whose promotion will probably d»pond upon their making advances to settlers of the right colour, and'.who will be amenable to very strong local influences to be virtuous,,

Tnvi part of the Bill whichpleases .us most is that which makes advances for. 3G£ years; repayablein,

half yearly instalments, with interest at 5 per cent, This we take to mean that a borrow will pay about 7j per cent, per annum, and this payment will in 36| years clear off all principal and interest,; This really will bo a boon to prudent men, and it will be possible for such persons to reap a decided benefit from sncli a. measure, Unfortunately the majority of settlers' are imprudent, and to such the facility given for extinguishing their loans will bp of little use.

Most men as long as there is any surrender Take left in their properties will mortgage or sell them even though they have given the State a lien, No man can be" tied to any laud or estate when once he gets sick of it by any law other than that of self-will and self interest. • The prudent man will do well to avail himself of the Government advances and will never regret his bargain, but other men will borrow up to the hilt as usual, get beliiud with their payments, and sell or clear out as may best suit them,

Win, the Stuteforeoloso when payments of interest fall in arrear ? If it does, the Act will become unpopular, and if it does not the Act will have to be worked at a heavy loss to the community. The present Government is unlikely to foreclose, and for this reason we may look forward to the measure being worked at the expense of the taxpayers of the Colony., Of courso, if one borrower bo allowed latitude, borrowers will generally claim and demand- it. Prom this point of view the advantage will bo all on the side of the I borrowers and dead against tho I State.

Lakgk numbers of settlers who have taken up laud, are charged a higher rental by the Government than their land is worth, Even a 36| years' loan at 1\ per cent, will be of little real use to tlie borrower who has to pay a comparatively heavy rental, Sooner or later, such imposts must kill him, He will not hold on to reap the good fortune which awaits him in his old age, but will "gounder" longbeforehis36| years aro up, The Government will take from him 5 percent, for a loan, 21 per cent, tor a sinking fund, aud quite 5 por cent, for a rental. His yearly dues to tho State will, after all, bo no light matter. He will be a serf with emancipation in tho very far distance.