VPRS 10192 Case Files

Full description

Records in this series are case files created by the Farmers' Debts Adjustment Board under the Farmers Debts Adjustment Act 1935 (No. 4326), relating to farmers' applications for Stay Orders and plans of debt adjustment. The Act came into effect on 24 December 1935 and remained in force until 26 April 1950 when Section 50 of the Rural Finance Corporation Act 1949 (No. 5414) cancelled all existing Stay Orders and ceased the issuing of any further Stay Orders or plans of debts adjustment. It is likely that files were created in this series until March 1950. Correspondence continued to be added to the files until at least 1956, as farmers repaid monies owing to the Board. It is likely that control of this series passed to the Rural Finance Corporation in April 1950 when the Board was dissolved, although this is subject to further research. This series was previously registered with the title Settlers' Files.

Under Section 12 of the Farmers Debts Adjustment Act, farmers were able to apply for an adjustment of any debts to a local Conciliation Officer. On receipt of an application, the officer issued a Stay Order [S12(3)] that protected the farmer from any action, execution or proceeding in respect of any debt of the farmer [S15(4)]. Once the Stay Order was issued, the Conciliation Officer considered whether or not the application should proceed to a debt adjustment plan [S12(4)]. If not, the Conciliation Officer notified the Board, which could then cancel the Stay Order. If the Conciliation Officer considered that a debt adjustment plan was appropriate, the officer was to arrange for a valuation of the farmer's assets [S17] and to call a meeting of creditors [S19]. The Conciliation Officer was responsible for working with the farmer and the farmer's creditors to develop a plan for debt adjustment [S21], taking into account the farmer's prospects and the interests of all parties concerned.

After agreement had been reached the Conciliation Officer submitted the plan to the Board for confirmation or refusal. If the Board refused the plan there were provisions for a modified plan to be developed [S26]. In some circumstances the Board's refusal meant that the Stay Order was also cancelled [S25(3)]. Otherwise it seems that Stay Orders stayed in effect until cancelled by the Board at a date after the plan had been confirmed. Dates recorded on the files indicate that there could be a long period of time between the Stay Order being issued and cancelled (eg. Stay Orders No. 4414 or 4381). Throughout the operation of the Stay Order, and during any deliberations by the Board, the farmer was required to supply to the Board information on receipts and expenditure [S37] and was also required to seek the Board's approval in the disposal of assets including property [S49].

Stay Orders issued, re-issued or cancelled were published in the Government Gazette, with the farmer's name, address, the date of issue or cancellation, and the Stay Order Number (from 1938 - 1950). Cases considered by the Board were recorded in minutes of Board meetings (see VPRS 10195) however the Stay Order Numbers are not given and the names are not indexed.

Plans of debt adjustment could include the cancellation of Crown debt, or the Board consolidating the farmer's debts and paying creditors [S22]. Any monies paid by the Board on the farmer's behalf were repayable by the farmer over a lengthy term, and could be secured by a mortgage on the farmer's property (see for example, Stay Order file No. 6). There was a requirement that consent of the Governor in Council be obtained for any adjustment or reduction of debts to the Crown, or of debts already adjusted or reduced under the Closer Settlement or Cultivation Advances Acts [S25]. Confirmed plans were binding upon the farmer and all creditors who had agreed to the plan [S25(2)].

Under Section 46, Stay Orders could be issued to farmers holding protection certificates under the Farmers Relief Acts or orders under the Financial Emergency Act 1931 (No. 3961). However such certificates or orders ceased to have effect once a plan of debt adjustment was confirmed. Farmers with a confirmed plan of debt adjustment were not eligible to become the holder of a protection certificate under the Farmers Relief Acts. Under Section 43, the Board was able to recommend to the Closer Settlement Commission (see VA 2268) that advances be made to enable a farmer to continue farming operations. Subsequent Acts which provided for advances to farmers made reference to Section 43, thereby enabling the Board to recommend advances under those Acts (eg. the Drought Relief Act 1940 (No. 4782)).

It is likely that these case files were not created at the time the application was first received, but at a later date, possibly when the documentation was forwarded from the Conciliation Officer to the Board. Typically these case files contain the farmer's application for adjustment of debts, various forms relating to the process (eg. proposal of debt adjustment; statements of receipts and expenditure), and correspondence between the farmer, the Board, and creditors. For some cases there are also Security files which seem to relate specifically to the repayment of debts owing to the Board. Often the Security files cover a much longer date range than the Application files, as the farmer was repaying debt long after the Stay Order was cancelled. Correspondence within the file is not necessarily filed in date order.

Information relating to the progress of the case was recorded on the file cover. The file covers were pre-printed with areas for information such as the date of issue or cancellation of a Stay Order, and the date of creditors' meetings. Files were stamped to indicate the status of the case, for example 'Confirmed', 'Reject', 'Liability Repaid', or 'NL' (probably No Liability). Each cover is stamped with the relevant district. When the debt was discharged or the Stay Order was cancelled, the cover was marked or crossed through.

The bulk of these case files relate to Stay Orders issued up to 24 December 1937, the initial cut-off date for applications. A later legislative amendment (No. 4681) extended the application date to 30 June 1944, and then in 1943 the end date of the Act was repealed (No. 4987). According to entries in the Government Gazette, the final Stay Order was numbered 4448, issued on 9 March 1950. Of these 4448 Stay Orders, there were no more than 33 issued after December 1937.