STATE CREDIT IN NEW ZEALAND.
[To the Editor of the SPECTATOR.] SIR,—It would appear (from Louis Pearson's letter to you in the Spectator, April 28th) that questions of statecraft lack not only a specialized Chair in one of our Universities, but with regard to the urgent questions of the day our Departments of State have no system of publishing facts with regard to experimental trials elsewhere which might be a guide in the right direction. Here in New Zealand since 1894 there has been a State Department of Advances, which was first started to help finance small farmers at a low rate of interest, with sinking fund, and later developed, in 1913, to include advances to workers for home building up to 75 per cent. of the value of the holding. The class of people who make use of it are such keen home makers that very little loss has occurred, and the general result has been excellent. During the War period the State here interfered se seriously with tenant rights and rents that building houses as a business proposition almost stopped. The shortage became so acute that Parliament was induced to authorize the building of many workers' homes by a branch of our Public Works Department. That failed to fill the want.
The weight of overhead expenses and officials, without a very personal interest in working economically, seem to be the reason of its failure. Mr. Massey has just announced his inten- tion still further to enlarge the successful older scheme of advances for home building by making advances up to 95 per cent. of the value of the holdings, the security, of course, increasing as the advances are made as before. It sounds a little rash, but in my opinion is a far sounder proposal than for Government or local bodies to build and act as landlords. A careful study of the New Zealand work in this matter would, I feel sure, show it to be well worth a trial on your side of the world.—I am, Sir, &c.,
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