RURAL ADVANCES ACT

Hokitika Guardian, 3 February 1927, Page 4

RURAL ADVANCES ACT

TO OPERATE ON APRIL 1. WELLINGTON, Feb. 1. To-day the A! mister of Finance (Hon F. J. Rolleston) announced that the Rurfil Advances Act passed last session would be put into operation on April ], and that the State Advances Department and Treasury were preparing for this event. The Act, which was passed after receipt of the report of the Ruml Credits Commission (Messrs AV. J. Poison. P. Cox and Colonel Esson), which made a world tour to study systems of farming finance, provides for loans of an aggregate amount of £5500 to settlers on approved security, as against the limit of £3500 under the State Advances Act. AYhilo in both cases an extra '£soo may Tie lent on stock, the Rural Advances Act has this disadvantage, however, for the small farmer, that while he may borrow more on production of approved security he may not raise a larger sum than one which reresents two-thirds of the value of his security. Under the State Ad vances Act he can obtain a loan up to 75 per cent of the estimated value of the security. It is understood that financial arrangements in connection with the commencement of operations are now being made. The Act empowers the Superintendent of Shite Advances to issue bonds against the security of properties which he holds, but the Treasury must find the money for loans. Once the State Advances Department moves, money must he raised, probably on the I/mdoti market, unless it can be found in the Dominion. For initial loans the State Advances Department possesses auth-

' oritv to transfer the necessary funds j for 'some other section of its nnderj takings, and should it not be in a possi- [ tion to do this it is announced that | the Treasury will Arrange finance in I order to enable the Department to i commence without delay, j It is understood that Colonel Ksson, j who was the Government's represen- ! tative on the Rural Credits Cornmisj sion, has assured the Government that i there will lx> no difficulty in marketing j bonds in London should this he neces- | sfary.