The unexampled and, till 1895, continuous fall of prices in the European markets made it hard for colonial producers to make both ends meet. The cultivator found his land depreciated because, though he grew more than before, he got less for it. As the volume of produce swelled, so the return for it sank as by some fatal compensation. To pay the old rates of interest is for the mortgaged farmer, therefore, an impossibility. Various schemes for using the credit of the State to reduce 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.