RURAL ADVANCES

Evening Post, Volume CXXI, Issue 84, 8 April 1936, Page 12

RURAL ADVANCES

NO INTERFEEENCE

MR. SAVAGE'S ASSURANCE

Interviewed today regarding a fear that, has been expressed that the Government's policy of guaranteeing prices and also adjusting mortgage liabilities on the basis of prices prevailing during the last eight or ten years might interfere with the security of current advances made by stock firms for the coming season, the Primo Minister (the Hon. M. J. Savage) stated that there was no ground for any such fear. , "The Government is aware ot vie fact that it is the general practice for stock firms and financial organisations dealing with farms to grant seasonal advances for the purchase of manures, seeds, replacements of stock, and for other working and living expenses," said Mr. Savage, "and for these to be recovered later in the year as the seasonal revenue comes to hand. This practice has been recognised in the existing mortgage relief legislation, and it is part of the working policy of the Adjustment Commissions and the Court of Review for such advances to be regarded as a first charge against the year's revenue. "Those concerned may rest assured that there is no ground for any apprehension that such advances will be imperilled by any Legislative or Governmental action. It is true that the Government intends to guarantee prices on^.the basis of the prices prevailing during the last eight or ten years, and it is also true that this will enable mortgages to be stabilised (as it is the Government's intention to do) without waiting for the" expiration of the next five years, but there never has been any intention on the part of the Government of prejudicing accounts of the sort concerning which question is now raised. In any amending legislation, care will be taken that advances made on a sound basis in anticipation of next season's income are not prejudiced/