STATE-GUARANTEED BANK

Dominion, Volume 15, Issue 14, 11 October 1921, Page 6

STATE-GUARANTEED BANK

FINANCIAL ASSISTANCE FOR PRODUCERS NEED FOR BETTER PROVISION j A scheme for the establishment of a State-guaranteed bank was submitted to yesterday’s meeting of the Dominion executive of jthe Farmers’ Union by Air. J. H. Joll (Hawke’s Bay), on behalf of the Hawke’s Bay- branch of the union. In 'outlining the schenWi, Mt. /Toll said that his union had carefully- considered tho advisability of establishing a State-guaranteed bank, and had come to the conclusion that the time was opportune, and ihat tho proposal should be put into operation without delay. There was a real need that better pro-’ vision should be made available to financially assist the primary and secondary producers of • the Dominion. Jn order to provide) a solid foundation ! upon which to build up the banking business, it would he necessary to establish the commercial value of 'the land of tlie Dominion, to be determined by- agreement betw-een the owners and the Government Valuation Department, and to remain as assessed for periods of not less than five years. It was also considered that there could be no security of ownership if the commercial value of the sovereign was a fluctuating quantity. It' was therefore sound policy- to maintain that the commercial value of land ' should be established otherwise. A further proposal was ihat the bank should at all times, when called upon, advance to applicants on production of their paper three-fourths of the commercial value of this land. The president (Mr. AV. J. Polson) said the scheme was more or less crude, and would require to be entirely remodelled before it could be, seriously considered. In referring to the alternative scheme, brought down by himself, for a producers’ co-operative bank, Air. Polson said that this provided a means of securing the finance that producers needed. There was therefore no need to launch any experiment of their own. The projected producers’ co-operative bank was largely- based on the agrarian banks in Europe, which were built up by the best brains of the Old AVorld during tlie last 200 years. The system embodied banking arrangements which were the admiration of the Old AVorld. and with slight modifications could be made to suit the requirements <;f the New Zealand producers. In reply. Air. Joll said that the abject of his union was simply to afford the executive a- basis to work upon. Further -consideration iof the proposals was deferred.