MONEY FOR FARMERS.

Press, Volume L, Issue 14887, 29 January 1914, Page 10

MONEY FOR FARMERS.

A ROYAL COMMISSIONER'S VIEWS. CREDIT FONCIER SYSTEM • ADVOCATED. . About tho middle of last year there visited the Dominion Mr Alexander Lucas, a member of the Royal.Commission -_et up by th© Provincial Government of British Columbia to enquire into systems of giving financial assistance to farmers. Mr Lucas visited Canterbury and amongst those he met was Mr C. H. Ensor, president of the Executive of the North Canterbury Farmers' Union. At yesterday's meeting of the Executive Mr Ensor reported having received from Mr Lucas a newspaper containing reference to the Commission's report. Referring to- the Advances to Settlers system in New Zealand, the newspaper " report stated that New Zealand headed ail countries in its export of produce, and that Mr Lucas argued that the system would prove beyond peradventure to bo of immense value to any country which has any ambitions towards tho promotion of agriculture. "I find it to be the. almost unanimous opinion of those whom I met," Mr Lucas was quoted as having said, "that the Advances to Settlers and the Stateguaranteed loans to farmers on the security of their lands for, the purpose of improving and developing the same and increasing their output, was the most beneficial legislation ever passed in New Zealand." Mr Ensor, referring to Mr Lucas's remarks regarding the influence of the Advances to iSottlers Act on the prosperity of New Zealand, said that he thought that tho fact should be kept in view that the freezing industry had been the greatest factor in New Zealand's prosperity. The time had arrived when the assistance of the State Advances to Settlers might, with advantage ,be supplemented by agricultural-, or credit 'foncier banks for tho purpose of supplying further loans at a cheaper rate of interest to farmers. This system was designed to secure that small men by combining and guaranteeing each other should obtain temporary loans, on stock, crops, etc. These formed groups, in connexion with each of which there was a committee before which all applications went. The committee included the guarantors, and consequently thero was seldom any trouble.. The ordinary banks at first discouraged these agricultural banks, but they now encouraged them, as they gave the banks increased security. Now Zealand might well get full information on the subject, as with the increased number of small holdings and the extension of the co-operative principle, the farmers wanted the best financial arrangements procurable. If farmers were able to finance amongst themselves thero would be fewer bound over to sell their stocks and produce through the firms which finance them. Better security would also bring about a lower rate of interest, and by cooperation it would be possible for farmers to arrange their loans with less legal expense and avoid the payment of procuration fees. Mr F. G. Horreli congratulated the president in suggesting the adoption of tho credit foncier system, but if his remarks were to be published, they should go forth as the president's own opinions, and not those of the Executive. Mr Ensor said that it would go forth 6rmply as a suggestion ho had brought forward.