ADVANCES TO FARMERS

Northland Age, Volume II, Issue 36, 10 September 1930, Page 6

ADVANCES TO FARMERS

CRITICISM OF DEPARTEENT INADEQUATE AMOUNTS OFFERED Strong comment on the administration of the State Advances Department was made at the meeting of the Te Awamutu branch of the Farmers’ Union on 30th ult., especially in regard to advances made for farm improvement. One speaker asserted that it seemed to be the policy of the department to offer only an amount that an intended borrower must decline as totally inadequate. “The whole thing is a farce,” he declared, “and the present Government is trying to make slaves of us.” He added that the politicians were urging the farmers to increase production yet the low advances offered curtailed production. “There is no finer institution than the State Advances Department if you can possibly get the money,” said another member, but he admitted that it was extremely difficult to get a sufficient loan.

Comparisons were made by members between the State Advances Office, the banking institutions and private lending institutions, and it was stated that the private institutions, although their charges were higher, invariably gave a greater percentage of the amounts applied for. One member said the department advanced only up to 75 per cent of the value of farm improvements, whereas a town worker could obtain up to 95 per cent, on a house loan. He could not say how many town people got the 95 per cent advance, but all his inquiries resulted in the conviction that very few indeed of the farmers got 75 per cent, for farm improvements. The position was entirely unfair, and the proportions should be reversed.