STATE ADVANCES.

Northern Advocate, 17 October 1923, Page 3

STATE ADVANCES.

UNPRECEDENTED DEVELOP MENT. PAYMENTS AT £110,000 A WEEK. An unprecedented rush of business is reported from the State Advances Department,. following the extension of the provisions of the Act in the amending legislation recently passed. Payment are being now made at the rate of £11!),000 a week. A country member of Parliament informed a representative of the "Dominion" that he was handling an enormous amount of business on behalf of farmers in the way of applications for loans under the new law. In response to a request, the Acting-Minister of Finance made an interesting statement on the position.

"The work which the State Advances is called on to do at present is unprecedented," said the Minister, "and it is quite impossible to cope with the applications as quickly as desired by those applying for loans, even though the utmost expedition is shown-.

The staff has been substantially increased to overtake the extra business, but over one hundred applications for loans are received on the average every day. Complaints about delay can hardly be well founded when it is stated that payments arc being made to borrowers at an average rate of £119,000 per week, and this amount tends to increase.

"A few further figures will indicate the immense task with which the Department is faced. During the last two months over '.>OOO applications have been received and the needs of the applicants have exceeded £7,000,000! The loans authorised for the last six months amounted to £4,025,607, whilst the amount actually paid over amounted to almost £2,500,000.

"With reference to loans for the same period for housing purposes, over £500,000 has been paid foi the purpose of erecting homes, whilst over lias been advanced for the purchase of houses already erected. In addition, the sum of £.">4,200 has been advanced to local bodies for the purpose of erecting workers' dwellings.

"For the six months ending September .'3O, the large sum of about £SOO,000 has been paid over for the purpose of repaying existing mortgages. There are also other advances made on chattel securities, etc. It is obvious that, if applicants will only exercise patience, ami recognise the pressure of work under which the Department is carrying on, in due course their applications will be dealt with. But it is impossible to deal with every application immediately on its receipt, as the valuers of the Valuation Department and the officers of the State Advances Office are working under the utmost, pressure, even although the staff has been enlarged in both Departments. Hut all applications, including those from outlving parts, will in due course receive consideration. But the more

borrowers try to rush matters, the more inflation will tend to take place in land and building costs, and theit own interests will be served if they will await their turn with as much patience 'is possible.''