8.—13 a

1896. NEW ZEALAND.

"THE GOVERNMENT ADVANCES TO SETTLERS ACT, 1894 " (REPORT RELATING TO THE ADMINISTRAT ON OF).

Presented to both Houses of the General Assembly by Command of His Excellency.

Mr. J. K. Warburton, the Superintendent, to the Hon. the Colonial Treasurer. Government Advances to Settlers Office, Sir,— Wellington, 15th June, 1896. In my first report, that of the 6th of July, 1895, on the administration of the Government Advances to Settlers Act, I stated what had been done during the first seven months after it came into operation. I then fully explained the purpose of the Act, the arrangements for the conduct of the business, and what the progress had been. There is very little to add, beyond the information which may be gathered from the returns which are appended. These returns are : — (1.) The advances authorised to be granted, the applications refused, the advances sanctioned to but declined by applicants, and the amount of valuation-fees received from unsuccessful applicants up to the 31st March, 1896, classified according to the electoral districts in which the relative securities are situated. (2.) The valuers employed, number of valuations ordered, the fees paid by applicants, and the fees allowed to the valuers. (3.) The applications received for loans. (4.) The applications on which no advances were authorised, classified according to provincial districts. (5.) The advances offered of less than the amount required, and declined by applicants, classified according to provincial districts. (6.) The applications classified according to the purposes for which the relative advances required, and according to provincial districts. (7.) The advances authorised, according to provincial districts. (8.) The applications upon which the amounts granted were less than the amounts required, classified according to provincial districts. (9.) The value of the lands, buildings, and other improvements comprising the securities for advances authorised, classified according to provincial districts. The principle of the Act, that the value of the property which may be offered as the security for a loan, and the risk of any loss from granting an advance, must determine the result of the consideration of every application, continues of course to be the strict rule of the administration ; and if the disappointed applicants are less numerous, or less clamorous now than formerly, the reason probably is that the principle of the Act and its provisions are better understood by the settlers. It is now, however, the rule of the Board to resolve that the value of the security offered for an advance should be communicated to the applicant when the required advance cannot be wholly granted, or to state any other reasons which can be disclosed for declining to sanction an advance of the amount of an application. Through the agency, not only of postmasters and officers of other departments of the Public Service, but of the valuers employed by the office, a wide distribution has been effected of pamphlets and circulars explaining the provisions of the Act, and instructions have been given orally to those who desired to be shown how to proceed in applying for a loan; and the applications have since I—B. 13a.