INTERMEDIATE CREDIT

Evening Post, Volume CIX, Issue 41, 18 February 1930, Page 13

INTERMEDIATE CREDIT

■MEETING OP THE BOABIJ

The monthly meeting ol the Rnrai Intermediate Credit Board waa held to Wellington, the following members being presenti" Colonel J. J. Essoa (chairman), Messrs. J. W. Macdonald (Commissioner of Bural Intermediate Credit), Norton Francis, T. E. Corkill, John Brown, W. Waddel, and R. B. Hayes. The last-named member took his seat for the first time on the board as Financial Adviser to the New Zealand Government

The board confirmed the loans grant* ed by the local committee, composed of certain members of the board resident in Wellington, which meets at weekly intervals, or more frequently it necessary, to deal with loan applications and other matters affecting the board's lending business. In his report to the board the Commissioner stated that the business waa expanding at a satisfactory rate, and that considerable further progress was anticipated as a result of the introduction of the recent extended system for the benefit of sheepfarmers and those engaged in the growing of crops. The report referred to the fact that the registration of the Eural Intermediate Credit Associatioa recently formed in the Botorta district has now been effected; that the statutory meeting has been held, and that the association is now in a positon to deal with applications for loans. It was also reported to the board that the formation of an association in the Whangarei district was practically completed, and that application for the board's consent to registration was expected at an early date. Inquiries ac to the formation of associations had also been received from the Blenheim, Oamaro, and Balclutha districts. As a result of the recent action taken to raise the limit of loans to £2000 to any one borrower, and the application of the "overdraft" or "limit" system to sheep-farming acoounts, applications for substantial amounts were beginning t» reach the board, both through rural injtennediate credit associations formed !in sheep-farming districts and by way of direct applications, supported by guarantees under Part HI. of the Act. A statement was presented to the board showing the amount of arrears outstanding as at tho 31st January, either on account of interest or on account of principal repayments, in terms of the Act. Tho amounts owing Under both headings were practically negligible, and the board expressed its gratification at the very satisfactory position revealed. It vras reported to the board that the repayments made by borrowers had been very substantial, and that the moneys repaid had been utilised for advances to other farmers requiring financial assistance. The board was advised that full and comprehensive supplementary instructions for the guidance of directors and secretary-treasurers of rural intemediate credit associations had been prepared and were being printed for distribution. These instructions deal fully with the method of making advances to sheep-farmers and grain-growers, and also deal with other incidental matters requiring the consideration of I secretary-treasurers and directors. i It was mentioned at the meeting that the board has ample funds in hand to meet its immediate commitments, and that advances are still available to farmers of all classes at the very moderate rate of 6} per cent.