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Hokitika Guardian, 11 February 1928, Page 2

Aiiuhvr.n tin- Piesidcoi ol tin- FarmUnion ha.' to s.-i\ afoot rural .ntairs naturally carries a great deal ot weight, and therefore, says an Auckland paper, the comments offered by Mr W. J. Poison on the Rural Intermediate Credits Bill is lertnin to command widespread attention. Moreover. Mr Poison lias devoted a great deal of time and trouble to this particular subject, and can claim to speak with authority upon it. The main point of Mr Poison’s attack is his allegation that in drafting the new scheme the eii-operative principle has been largely ignored, and that advances are to he made by the Credits Board not to groups or associations, but to individuals. Everybody who has any detailed acquaintance with this subject Is of course aware that the co-opera-tive principle is the groundwork of the system of Rural Credits now at work in many European countries, and the secret of its greal success. The surveillance exercised by each member ol the group over all (lie others in defence of their joint credit; is a potent safeguard, and without this no such system is likclv to prove financially sound. Air Poison’s attack has had at least; the effect of drawing a long and vigorous reply from Mr Coates. The Premier, in a statement made through the “Dominion.” repudiates Air Poison's suggestion that the co-operative principle has teen neglected In framing this legislation. On the contrary, be asserts that every facility is provided hv the Act for the formal ion of the requiste eo-operatve groups, which secure loans on the basis of a joint guarantee. But to complete the scheme it- seemed that provision was also necessary for advances to individuals on other security, and tills was arranged hv an amendment to the Bill whe.s it was returned to the Lower House. Assuming that Air Coates has given a full and accurate account of the scheme. Mr Poison’s apprehensions would seem to lie groundless. But we have still to hear what the President ■if the Farmers’ Union has to sa.v in reply to the Prime Afinister.