b— n

to meet the requirements of applicants seeking loans within the normal lending limits T the main restriction operating against prospective borrowers at present being the continued shortage of labour and certain essential building-materials, and high costs. When these problems are solved there will undoubtedly be heavier calls on the Corporation's funds, especially for the erection of homes. The Corporation will continue to play its part in this sphere in the future as it has done in the past. Rural Intermediate Credit (Stock) Loans Although the Rural Intermediate Credit Amendment Act, 1946, amalgamated the system of short-term loans with the Corporation's other lending operations, it in no way lessened the availability of funds to those farmers who desire to borrow money in this way on the security of their stock and plant, and applications are still being received both through the various associations and by the Corporation direct. The demands for accommodation increased during the year, but are still not extensive, due no doubt to favourable seasons and prices resulting in most farmers being able to meet their requirements from revenue without recourse to capital borrowing. Loans totalling 106 (as against 64 in the preceding year), involving £115,840, were granted on applications made direct to the Corporation, whilst 37 loans, amounting to £21,613, were made available to farmers on application through the associations. The comparative figures for the past two years and the total amounts outstanding under current loans are illustrated in the following tables :

Rehabilitation Agency : General The investigation of new applications for loans from ex-servicemen and the administration of loans already granted continues to form a large part of the Corporation's functions. The responsibility for making decisio'ns on these applications rests with the Rehabilitation Loans Commitee, and, under delegation from that Committee, with the District Loans Committees functioning in the various districts. These Committees in turn depend upon the Corporation's staff to make the necessary investigations and reports, and generally to assemble and explain the data where necessary to enable decisions to be made. It is worthy of note that all the District Loans Committees have paid tribute to the work of the Corporation's staff, which they regard as particularly important to the consideration of loan applications.

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Loans Granted by— For Year Ended 31st March, 1948. For Year Ended 31st March, 1940. Number Amount. i | Number Amount. Corporation direct Corporation through Associations Outstat 64 30 £ 82,727 21,392 106 34 £ 115,840 21,613 Totals 94 104,119 140 137,453 Total Amounts Corporation direct Corporation through Associations ding on 216 206 Loans Our 132,752 46,630 rent 279 229 175,152 39,347 Totals 422 179,382 508 214,499