STATE ADVANCES.

Auckland Star, Volume LV, Issue 168, 17 July 1924, Page 10

STATE ADVANCES.

I CRITICISM OF DEPARTMENT. ! MR. MASSEY'S DEFENCE. (!\v Telejrnrph.-Specin] to "Star."') WELLINGTON. Wednesday. I Tlip Premier to-day gave the House replies to various criticisms levelled against the State Advances Department lin the form of <|uestions which members ■ put to him as Minister in charge. "No "amendment of policy in connection with ! State advances is necessary.'" declared • Mr. Massey, in reply to Mr. de la i I I'crrelle. who had asserted that persons •: in pood circumstances were petting ad- ! i values while small farmers and workers Ii in sore need of assistance were being i I refused ordinary and urgently required I i advances. ■ j Mr. de In Perrelle repeated his state- • j muni about a Devonport resident who is i in receipt of a. thousand a year, and who obtained a loan of two thousand to build J v residence. I Mr, Massoy: Give mc his name. , ; Mr. dc la Perrelle: You can easily find ! from your Department whether my statement is correct or not. Doctors have . J been receiving £2000 to build residences •I in the city. They borrow at a low rate ' mid lend their owu money at a high ! rate of interest. Tlip Premier's written reply was that the Department was not aware that hirge advances were being made to persons in good circumstances to the j detriment of small farmers and workers Jin sore n&jfl of assistance. On the contrary, experience was that borrowers i wore more or less in necessitous circurn- ! stances when they sought assistance of I the office to obtain money at low interest. Following upon Mr. W. J. Jordan's ■ statement that certain families in j Manukau are living in tents, the Premier ' stated that the Advances Department would (leal with urgent and necessitous cases without delay. Replying to the Hon. D. Buddo, wh,o also thought the Department seemed [quite unable to give any substantial i assistance to the money market to enable I applicants for mortgages on farm land jto renew loans,. the Premier declared that it had rendered substantial aid to farmers to repay mortgages on farm I lands, and would continue to do so to relieve any stringency which might exist. Replying to a suggestion by Mr. G. W, Forbes (Hurunui) that as the Advances Department had failed to meet the pressing financial requirements of settlers, agricultural banks should be established, Mr. Massey said it could j not be admitted that the Advances I Department had failed to meet pressing j requirements. The Government was not i standing in the way of the establishjment of agricultural banks, but it could not accept the financial responsibility (attempted to be placed upon it by the I bill of last session, j It was pointed out by Mr. Buddo that • good chattel security offered to the I State Advances Department by farmers 'on leaseholds had been rejected. I Mr. Massey in answer, pointed out that it was not considered that stock on land under lease from a private individual afforded sufficient and satisfactory security for an advance. ! V