ADVANCES TO FARMERS

Hawke's Bay Tribune, Volume XXVI, Issue 101, 9 April 1936, Page 7

ADVANCES TO FARMERS

Not Prejudiced by Government Action PREMIER’S ASSURANCE By Telegraph —Press Association WELLINGTON, April 8. The Prime Minister, the Hon. M. J. Savage, in a statement to-day regarding the fear that had been expressed that tho Government's policy of guaranteeing prices and also adjusting mortgage liabilities on a basis of prices prevailing during the past eight or ten years might interfere with the security of current advances made by stock firms for the coming season said that there was no ground for any such fear. “Tho Government is aware of the fact that it was the general practice of stock firms and financial organisations dealing with farms to grant seasonal advances for the purchase of manures and seeds, the replacement of stock and other working and living expenses,’’ said the Primo Minister, “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 Commissioners and 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 a 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 tho part of the Government to prejudice accounts of the sort concerning which the 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.’’