STATE ADVANCES DEPARTMENT

Marlborough Express, Volume XLVII, Issue 138, 13 June 1913, Page 5

STATE ADVANCES DEPARTMENT

CRITICISM REPLIED TO.

WELLINGTON, June 13. The Hon. James Allen, replying to recently published criticisms regardr ing the State Advances Department, said that it had been suggested that the Government altered the proportion a man could borrow.. This was altogether wrong. It was also suggested that because the reform party was in power certain men who applied for loans had been offered less than they applied for. The administration of this mo/ney was in the hands of the State Guaranteed Advances Board ; the Government did not influence it in any way. Some of the applications had been rejected and some reduced. This had been the practice before the present Government came into power, and must of necessity be the practice now. It was incompatible with safety to lend everybody whatever they asked for. When the Government came into office the commitments amounted to £770,000, and the provision made for them was less than £20,000. The position to-day was that the commitmeiits had! been reduced to £516,000, to meet which the Department had £352,000.