RURAL FINANCE

Dominion, Volume 21, Issue 127, 27 February 1928, Page 8

RURAL FINANCE

LONG AND SHORT-TERM SCHEMES A REFERENCE EXTENDED In the course of his address at Te Awamutu last week, the Minister of Lands (Hon. A. D. McLeod), when mentioning the assistance granted by the Government to primary producers, made brief reference to the Rural Advances Act, 1926, and the Rural Intermediate Credits Act, 1927, in the following terms: —"In addition to the ordinary advances the taxpayer has also been asked to become finally responsible for a further £1,000,009 as a guarantee for the long term rural bonds and intermediate credit bonds now being placed upon the financial market.” In conversation with a Dominion representative after returning to Wellington, the Minister stated that in view of the fact that rural advances bonds for the long term mortgage system are now on public offer to investors, his remarks might well have been extended. "The position is,” said Mr. McLeod, “that since April 1 last loans totalling about £1,900,000 have been authorised by the board for these purposes under the Act of 1926, and the monevs up to that amount are, as required, supplied bv the Government temporarily out of other accounts pending receipt of the proceeds of the bond issues which are based on . the registered first mortgage securities lodged. As stated in the prospectus the bonds are not a charge on the public revenue. The present issue is the first public offer, and the Government hopes that all interests connected with the nrimarv industries wi.i assist in providing the capital for the man on the land.”

"The Intermediate Credits scheme, added the Minister, "is under another Act, and being a short term scheme, is a fund quite distinct from the R'-ral Advances scheme. The Act which was passed last session came into operation last month, and its initial funds are furnished by a Government advance up to £100,900,' and loan issues are not required until these resources are exhausted. T wish to make it quite clear that Intermediate Credits finance is not included in the present public issue, as might have been inferred from my brief remarks at Te Awamutu.”