RURAL FINANCE

Evening Post, Volume CX, Issue 137, 8 December 1930, Page 13

RURAL FINANCE

BELIEF WITHOUT DELAY

CHRISTCHURCH SUGGESTION

(By Telegraph.) (Spcoial to "The Evening Post.") CHRISTCHURCH, This Day. Discussing tho present difficulties in regard to rural finance, the Christchurch "Times" advocates greater use (Of , tho long-term mortgage scheme, .frith provision for a gradual reduction Sn the principal, and suggests that a reduction in the taxation oil income jfrom these investments should maks it easier for the man on the land to obtain financial assistance. Approval of the idea has been expressed by Mt. Norton JTrancis, a memtier of the Rural Intermediate Credit Board. Begarding the urgent need of temporary assistance in order to keep production going, the "Times" states editorially to-day: "According to a deputation that waited on Ministers of the Crown last week, there is quite a probability that somo of the dairy farmers, for instance, may have to abandon their farms. There must be a practicable method of obviating disasters of that kind, and it is the duty of the Government and the people 10 co-operate in finding it. We have not seen any recent statement relating to the financial position of the bodies specially created to control tho provision of rural credits to farmers, but assume that the sale of bonds to provide necessary capital will not be an easy matter, indeed, the policy of issuing these bonds within the country 'at the present time would be difficult to defend. Conditions in London are such that a further reduction of the bank rate in anticipation of a huge conversion transaction iB being discussed, and if, a.s is thought probable, the market should come to a 4J per cent, basis, the time should be opportune for the placing of our rural bonds. If, however, the credit boards have not sufficient funds available for their purposes, it might be possible for them to issue certificates to those whose applications had been approved after the usual investigations, so that they could be lodged with banks or firms as security for temporary assistance. The rate of interest, of course, would be that now current, but as the security would be undoubted, and practically tantamount to a Government bill, it should be possible for the borrower to secure tho money required to tide him over a period of difficulty until tho seasonal returns were available. We suggest this as a possible expedient, as it would have the great advantage of affording some relief without undue delay."