e current rates of interest have been before the public in more
than one colony. The scheme of the New Zealand Government is contained
in the Advances to Settlers Act, 1894. Under it a State Board may lend
Government money on leasehold and freehold security, but not on urban
or suburban land, unless occupied for farming or market-gardening.
The loan may amount to three-fifths of the value of the security when
freehold, and one-half when leasehold. The rate of interest charged
is 5 per cent., but the borrower pays at the rate of 6 per cent. in
half-yearly instalments, the extra 1 per cent. being by way of gradual
repayment of the principal. Mortgagees must in this way repay the
principal in 73 half-yearly instalments, provided they care to remain
indebted so long. If able to wipe off their debts sooner, they can do
so. The Act came into force in October, 1894. Machinery for carrying
it out was quickly set up; applications for loans came in freely, and
about a million has been lent, though the State Board, in its anxiety
to avoid bad security, has shown a proper spirit of caution.

With one exception, the constitutional changes of the eight years may
be dismissed in a very few words. The Upper Chamber, or Legislative
Council of New Zealand, is nominative and not elective, nor is there
any fixed limit to its numbers. Liable, thus, to be diluted by Liberal
nominees, it is not so strong an obstacle to the popular will as are
the Elective Councils of certain Australian Colonies. Prior to 1891,
however, the nominations in New Zealand were for life. This was
objected to for two reasons. A Councillor, who at the age of sixty
might be a valuable adviser, might twelve years later be but
the shadow of his former self. Moreover, experience showed that
Conservatism was apt to strengthen in the nominated legislator's mind
with advancing years. So a seven years' tenure has been substituted
for life tenure. Then, again, in 1891 the Liberal majority in the
Colony was scarcely represented in the Council at all. In important
divisions, Government measures passed by decisive majorities in the
popular Chamber could only muster two, three, four, or five supporters
in the Council. This not only meant that a hostile majority could
reject and amend as it pleased, but that measures were not even fairly
debated in the Upper House. Only one side was heard. In 1892 the
Ballance Ministry, therefore, asked the Governor to call twelve fresh
Councillors