AGRICULTURAL BANK

Hokitika Guardian, 31 July 1925, Page 1

AGRICULTURAL BANK

AIM, COATES PROMISES AN INVESTIGATION.

WELLINGTON. July 29

Addressing the Farmers’ Union Conference, the Prime Minister said that to farmers finance was absolutely essential. They heard a lot about mortgage- and some people said the whole country was plastered with mortgages. All he had got to say was this, that we would never have got the dcvolopinen which had taken place in this country if it had not been for the mortgagee. There was no use talkin;. about it., That was the position. AA > recognised that if wo wanted progress ami to be able to compete with other countries our farmers had to occupy profitable conditions and tlmt could not be done without money. How were they going to get money for that ?

Air AY. Ib Afatlioson: An agricul it ml bank.

The Prime Minister replied that he was not going to argue against an agricultural bank. (Applause.) Bui he diil sav this, and ho said' it very definitely. that whatever wo did let us do the right- thing and not undertake experimental legislation which was going lo let everybody down, disturb existing finance and disturb numbers of farmers who were now responsible for money they had raised. Mr Poison (president): AVo are in entire agroment on that. Air Coiites remarked that the flow of money must he directed hack to rural securities. The Government had endeavoured in suggested legislation which would come in due course before Parliament to even up tho state of interest between municipal and loeai body debentures and ordinary investments. Tie did not say there was much advantage in that, because he know an advantage still existed to investors with regard to local body securities. There was some small concession from the point of view of the man wlio wanted to borrow and it would do away with a certain amount of irritation. He referred to the mortgage duty tax. He, could say that several institutions had considered the question of table mortgages and were going to lend in future on that basis. He was sure they would he patriotic and they must recognise that the whole prosperity of the country rested on the primary producers. He was pleased (o say that in every instance there had been a ready response in this respect. There was plenty of money in New Zealand, and, if wo could set tho flow back, wo would have accomplished something. As to whether that money would bo cheap enough lie was not. disposed at tbe moment to say or discuss that question. He announced that ho proposed to send two competent gentlemen to make full inquiries in regard to the question of agricultural banks and to report upon the whole subject and lie bad already asked the president of Hie New Zealand Farmers’ Union (Air Poison) if ho would go. (Applause.) Air Coates added that a thorough investigation would lie made on the question in this way before anything was done in New Zealand. Before (lonite action was taken wo must bo assured that what was proposed would be thoroughly sound. They did not

want anything that would be likely to prove detrimental in years to conic. He might say that as a young New Zealander ho "as very jealous of the position he held and whether he field his present position for a short or for a long time he hoped to !>o able to maintain tbe great name New Zealand bad already won. (Applause.)