FARMERS’ FINANCIAL AGENCIES.

Franklin Times, Volume 9, Issue 625, 19 April 1921, Page 7

FARMERS’ FINANCIAL AGENCIES.

CO-OPERATIVE AGRIC ULT U UAL BANKS. Agricultural banks as co-operative institutions to aid agriculture are no new thing, having been started nearly 70 years ago, and having been uniformly successful have spread to most countries. The benefit of a cooperative agricultural bank is that it reaches those needs in farming no ordinary financial institution can reach, and can do what no other trader can do. To quote Wolff, the great authority;—“They sequre to farmers the invaluable power of helping themselves; they provide the use of money without stint or limit, in respect of both amount and time for any productive work; they make combination easy for every purpose, whether it be supply, production, insurance, co-operative disposal of produce, or common work and find the means in which to carry it out. ’ To quote Desjardins, the great Canadian expositor: —“It is of the highest importance that the farmers should be organised, as are other classes of the community, and the first step towards this end is an institution that wfil afford the tillers of the soil the capital they need to improve thenindustry. They should not be frightened at an innovation by those socalled wise men who exaggerate prudence, but who as a matter of fact are the victims of their own intellectual deformity, or of a deplorable professional prejudice which causes them to look at a new step with fear or bias. Obviously, wisdom is necessary, but audacity coupled with thoughtfulness and progress is also the key to progress. These men always want to see ‘how the enterprise will turn out’ before taking part in Ulny movement, even if it has sustained the test of experience. We have met a good many of these unfortunate human beings who are always behind the rest of the population, but believe themselves to be leaders.”

How to Start an Agricultural Bank.

The farmers in each district should form themselves into a union to get funds. I consider in New Zealand, seeing - agriculture is the basis of our existence, that the Government should guarantee at least £2,000,000, and each branch of the Farmers’ Union should be a Farmers Financial Agency. The following extracts from Leaflet 18 of the Agricultural Organisation Society of Great Britain, show the main plan followed in other countries, (1) The Union borrows money on the joint security of its members from any ordinary bank or private person. (2) Deposits are received and lent out. The security of all loans is the unlimited liability of all membeis of the Union. To safeguard members it is necessary that each bank should know its borrower personally, and operate only in its own district. A committee elected by the i branch conducts the operations. | Leans are granted only to members j of the Union, and solely for t ep.ro- ; dnetive purposes, such as the purI chase of seeds, manures feeding. I Stuffs, sh'" p, rows, pigs, poultry etc. | Ample time is ailowed ,bortw< is to ) make the profits out ox loans before ; ! it-payment. livery applicant Tor a. . ; loan must offer, inaddition to his ova; | 1 personal security, that of one or two i friends who are willing" to guarantee to repay the ioan in full, with interest, tot lie Society should the applicant, himself fail to do so." In ether words it is “the capitalisation of, personal honesty,”