RURAL CREDITS

Evening Star, Issue 19550, 7 May 1927, Page 11

RURAL CREDITS

MINISTER ANSWERS CRITICISM [Per United Phess Association.] . . WELLINGTON, May 8. A reply was made to-day by the Minister of Finance (the Hon. VV. Downie Stewart) to Mr W. J. Poison’s criticism of the administration of the Rural Advances Act. “Mr Poison’s criticism,” said Mr Stewart, “ means that as a member of the Rural Advances Board he contradicts most of what he said as a. member of the Royal Commission on Rural Credits. He says that the department insists on getting mortgages before advancing the money, and that the Act should be altered to provide that bonds can be issued against the assets of the branch, and the advances of the Government, instead of against mortgages until the mortgages are available, but the only assets of the branch at present are £500,000, which has been lent to it to make advances to farmers. When these advances have been made either for the whole or part of this amount a bond issue can be floated, secured on the mortgages. This is the procedure recommended by the Royal Commission on Rural Credits, of which Mr Poison was a member.

“ ] do not know why Mr Poison should suggest that the scheme will drift ’hto stagnation when the £500,000 has been advanced,” said the Minister in conclusion. “If he and the members of the Farmers’ Union help to sell the bonds as the farmers’ organisations do in other countries. I am very hopeful that they# will sell. It looks as, if Mr Poison is beginning to have doubts as to the scheme which he himself recommended, and which he has been asked to help to administer.”