INTERMEDIATE CREDIT

Press, Volume LXXI, Issue 21415, 6 March 1935, Page 12

INTERMEDIATE CREDIT

SYSTEM PRAISED BY MR POLSON PROTEST AGAINST PRESENT PROPOSALS [From Our Parliamentary Reporter.] WELLINGTON, March 5. "Regret that the Rural Intermediate Credit Board should lose its identity in the Mortgage Corporation was expressed by Mr W. J. Poison (C, Stratford) in the House of Representatives to-night, when the Mortgage Corporation Bill was in committee. Mr Poison spoke oC the co-operative nature of the rural intermediate credit system, and of its successful working over a short period of difficult years. Although the prganisation had had a chequered career he said, farmers looked on it as the most successful money-lending institution in the country. Its total losses had been only £2OO. Now, however, this institution was to bo put under the control of a joint slock corporation, and since it was impossible to carry co-operative and joint stock business, it must lose its idenlily. "This is the most vicious proposal in the whole bill," said Mr Poison. "It means a death-blow to co-operative effort. I cannot understand why. in view of the success of the board, it is to be taken out of the hands of the men who have controlled it. I do not know if the Government's attitude is incomprehensible, because this bill seems to aim at the tying of farmers' finance, not only 1o the corporation, but to Iho financial control so apparent in this country.

Minister's Keply The Minister for Financ <Mr Coatesi said he could not let Mr Polson's remarks pass unchallenged. Mr Poison had discussed the matter publiclv. Mr Poison: In the House. Mr Conies: And in other places. Mr Poison: T expressed these views in the see'ond-"oaeiiug debate. Mr Coatcs: Why does the lion, member sav il ends tlw co-operative movement''" Docs hj" suggest: lhat the present position is entirely satisfactory willi ruial credit'.' Mr Poison: 11. is a great deal better than il will be. Mr Conks: But how do you arrive at thai'' You should at least give . nine reasons for your belief. Hoard Congratulated Mr Cnates said lie agreed that the Rural Intermediate Credit Board and associations deserved congratulation for the work they had done; but he considered that intermediate credit, could be made a most important factor in the Mortgage Corporation. Was shareholder capital the enemy of intermediate credit? Mr Coales said he was f.'.st coming to the conclusion lhat because lie said a thing Mr Poison must op>ise i'. Mr \V. A. Vcitch (bid., Wanganui >: You are paying him a great compliment. Mr Coafos explained that rural credit would not be handed over to the corporation except after careful consideration. The Government certainly would not agree to the destruction of the present system.