STATE ADVANCES.

Manawatu Standard, Volume LIII, Issue 265, 6 October 1933, Page 7

STATE ADVANCES.

LOSSES BY DEPARTMENT,

DIFFICULTIES OF MORTGAGORS

(By Telegraph—Special to Standard.) WELLINGTON, Oct. 5. The heavy losses disclosed in the annual report of the State Advances Office, the. largest lending body in the Dominion, throw into high relief the difficulties of mortgagors. The office collected in interest during the year £2,222,626 and mortgages anu instalments of principal repaid amounted to £1,362,776. but the long continued depression sliows its result on the bal-ance-sheets of the separate branches which have been obliged, during the year, to -write off losses on the realisasation of securities and doubtful securities written down, as follows: £ Advances to Settlers branch 92,743 Rural Advances 40,647 Advances to Workers 50,670

Total 184,060 OVERDUE INTEREST.

The interest accounts of these branches include the following figures of interest on mortgages overdue as at March 31 £ Advances to Settlers 700,178 Rural Advances 231,789 Advances to Workers 517,396 Total 1,449,363 Taking the accounts generally, it is shown that the percentage of arrears to the balance of advances outstanding is 4.19 per cent., and the office has advances on mortgage current to the extent of £43,834,387. It is stated by the superintendent that in some cases realisation of securities has been necessary, but in the main a policy of “nursing” securities against better times is followed. The ultimate losses of the departs ment due to the prolonged economic depression will not, adds the report, be ascertained until prices and wages are stabilised. Unless the price levels of primary produce substantially increase, the losses will be considerable. The report also stresses the necessity for further provision in the Advances Office sinking fund for the redemption loan liability, though no accretion to this fund was possible last year. The profit and loss accounts disclose that the three principal branches of the office niade losses which aggregate £242,869.