FINANCING THE FARMER

Dominion, Volume 12, Issue 78, 27 December 1918, Page 8

FINANCING THE FARMER

| A paper read by Professor Irvine, of Ihe Sydney University, at the recent Primary Producers' Conference in Sydiey, has caused some stir in financial jfrcles, says an Australian paper. The imrfessor devoted most of his paper to She main question of loans to people on ihe land. There were a number of farmers prasent, nnd also some pastoralists, ivho had close knowledgo of the phases through which the settler passes, who iwgins with small capital, and has to lie financed to the stage where he lias a, jood margin between the load his pro-

perty carries and the value of his land and improvements. Professor Irvino touched on the uncertainty from which settlers have suffered- whu havo had recourse to the regular banking systc-m. Ol course, the old point, ns to whether it is better for the tanner or pnstoralist to place hia securities in a bank and draw against them on current account, with a stated limit, or to raise 11 fixed loan and work on that, was discussed. Some of the sudden changes in the value of securities for loan purposes, which have given thousands of settlers sleepless nights, were talked of, and the views of Professor Irvine on tho question of the State endeavouring to provide 41 mora stablu system, were applauded. He naturally scored a popular jxiint by putting forward the view that, instead of the borrower being regarded as being under an obligation to the lender, the parties should be considered as. being on at least an equal footing with respect to obligation. Co-operation was suggested, and the professor made a strong point of the necessity for organising'among the settlers and producers. ;, S.oinc of tlie views expressed in the paper have, as might have been expected, found little favour in financial circles. But all the-same, the settlers' .will .consider that there was much food for thought in the propositions put forward.