The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, AUGUST 3rd. 1925. FINANCE FOR THE FARMER.

Hokitika Guardian, 3 August 1925, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times MONDAY, AUGUST 3rd. 1925. FINANCE FOR THE FARMER.

Cast session Mr Wilford, Leader of the Opposition, offered suggestions with regard to the much discussed question of agricultural banks. This session he has gone a step further, and the hill dealing with the question was read a first time in the House last week. The need for better and more assured finance for the farmer is very pressing. It was in 1894 during the early period of the Liberal Government under the late R. J. Seddon. that Sir Joseph Ward introduced the important measure styled Government Advances to Settlers. That act provided money at a much lower rate for mortgages and provided the means for settlers to develope their holdings. Incidentally, also, it reduced very greatly the legal costs incurred in connection with mortgages. It is significant j that the Reform party of those days, ' strenuously opposed the measure. But the Liberals had right and might

with them and the bill heeame the law of tin' land. It was a great blessing to the farming community, and when in due eourse il. had justified iLself. the principle of cheap money was extended practically to all. and workers and holders of town properties participated in the benefits ol the legislation, which PeliTin in the end also took up. Tho system inaugurated by the Liberals has lawn most succc.v>lul, and an enormous sum lias been handled, running into millions. The general effect of the cheap money scheme on the prosperity of New Zealand it would be hard to estimate. Nowadays the present Government is not able to raise the money equal to requirements, while tho cost of the money to the State is higher than the lending rate. There is thus a shortage of money for tlie needy settlor. Agricultural hanks have been suggested to meet the situation. This is a co-operative form ot borrowing and lending by organising existing capital, with the addition of a State guarantee. It is proposed to he placed on lines similar to other countries where the system is held to he successful. The tip .Mr Wilford gave last session on the matter was enough to stimulate Government action though for some Lime the Reform administration strongly opposed the proposal. The Prime Minister proposes now to set up a special committee of enquiry of which the President of the Farmers' K n inn is to he one. Mr Poison has been a strong advocate of the banking system suggestion, and his appointment is a political sop lo the farmers, and this being election year, it cannot be said it is otherwise than well timed. The report can hardly lie available before the election, so that the party in power can lie* noncommittal on tlw subject till after the election, when the report has to he dealt with. Mr Wilford has well anticipated the position, and has indicated that his party is priuticaßy considerate of the interests of the farmers. It is highly essential to keep up the output of primary products so as t > assure the national prosperity. And it is essential to help farm production whence comes so much of the direct prosperity New Zealand enjoys. Mr Willords' bill while modelled on the legislation of other countries, cannot be regarded as a new or untried system. The State guarantee is not considered unreasonable, for again in 1895 the Liberal party gave a State guarantee to the Bank of .New Zealand, and that endorsement still stands, and tho country lias done exceedingly well out of the transactions. Finance is always a subject more or less delicate ami in the new proposal there is a large interest involved. The fuller dismission to take place in Parliament on the second reading of the hill, will probably disclose just how .sincere the Government are, and the farmers will see who are their best friends in thihighly important matter.