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DEBT ADJUSTMENT
The adjustment of the debts of Vic
torian farmers whose assets were
almost swept away in the depression,
is proving a much more difficult job
than was expected by the Common
wealth and State authorities. It is
not being made any easier by differ
ences between Federal and State Gov
ernments regarding the fiancing of the
terms of settlement arranged between
farmers and their creditors. When
the plan was first propounded, it was
proposed that a total of £ 12,000,000
should be spent, and that settlements
should be spread over about three
years . The whole of the capital was
to be provided by the Commonwealth,
and the details of adjustments were to
be the responsibility of the various
States.
Victoria, which is far ahead of the
other States in dealing with the pro
blem, and which prefers a cash basis
to the mortgages system favored by
some other State governments, ap
pointed its board for four years, al
lowing a year for m eliminary work
and the winding up t)f its operations.
In the -first year operations proceeded
easily, but last year the Common
wealth upset calculations . by an
nouncing that it would not finance set
tlements from its surplus revenue, in
sisting that all funds necessary should
be obtained by loans, which meant
that the amount available for works
and unemployment relief was corres
pondingly reduced. Now, after the
Victorian board has been in' exis
tence-for two and a half years, only
one-half of the cases presented to it
have been settled. Further adjust
ments are dependent upon the amount
that is made available in the next
financial year, and, because of the de
mands of the defence programme,
coupled with the extensive conversion
operations that have to be undertaken
in 1938-39, this is likely to be less than
the total provided in the current year:
The indications are, that
the settlements will not be completed
in less than five years, and may take
even longer.
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