11

H.—3o,

they are also, in many cases, personally acquainted with the applicant, it is felt that they are peculiarly qualified to judge the ability of the grantor to repay. Frequently terms are arranged for the first twelve months, when the position is reviewed. Strict supervision is kept upon repayments, and the latest return of arrears shows that out of 1.2,267 soldiers who have received loans from the Department there are less than 5 per cent, in arrear with their repayments. Included amongst the latter are a number who require a certain amount of latitude in this connection owing to the fact that they are in indifferent health as a result of disabilities contracted in military service. The chart given below shows the amount expended on behalf of soldiers each month since the inception of the Department, and the amount repaid on loan accounts : —

EXPENDITURE ON SOLDIERS.

A glance at the chart shows that the expenditure is gradually decreasing, and it is anticipated that in the near future the monthly repayments will exceed the monthly advances. The amount repaid to date is £206,585, and during the month of June, 1920, the Department collected no less than £33,419. This represents a repayment rate of over £400,000 per annum, and augurs well for the success of this section of the Department's operations. There is no doubt whatever that the provision of advances for the acquisition and establishment of businesses and for the purchase of furniture and tools of trade has proved an inestimable boon to thousands of discharged soldiers, who are now showing their appreciation by the prompt and loyal manner in which they are meeting their obligations. Many instances of the quite remarkable success achieved in business by assisted soldiers could be cited, of which the following are examples : — A and B. Grocers. After seven months' trading the stock had increased from £250 to £1,000, and was insured for £940. Loan instalments and all merchants' accounts have been paid regularly, and the business is expanding rapidly. C. Cabinetmaker. This business has increased to such an extent that the grantor has more work on his hands than he can cope with, although he is now employing five tradesmen. D. Baker and pastrycook. Business has been established for twelve months, and during that period the soldier has, in addition to paying loan instalments, put in extra plant to the value of over £100. Has also a large quantity of butter in cold storage and paid for. Business is increasing so rapidly that the grantor is contemplating opening a branch shop.