RURAL CREDITS

Hokitika Guardian, 20 November 1928, Page 3

RURAL CREDITS

ADMINISTRATION OF THE SYSTEM.

WELLINGTON, November 17

At a meeting of the Rural Intermediate Credit Hoard, a statement presented hy the Commissioner (Air J. W. MacDonald) showed that good progress had been made in connection with the administration of this new system of rural finance, and that a satisfactory volume of business had been transacted hy the hoard under all headings. At the meeting, consent was given to the registration of Rural Intermediate Credit Associations formed in the Weirarapa district and at To Amlin. U was also reported to the hoard that a further association had been formed at Wright’s Rush in the Southland district, and would shortly be approaching the hoard for consent to registration as a preliminary to commencing active lending operations.

Information before the hoard as to the personnel of the Wnirarapa and To Aroha Associations indicates that the associations are composed of a very satisfactory type of farmer, and it may lie expected that the operations ol these associations will reach substantial dimensions upon a sound basis. The total number of associations formed throughout the Dominion is now twenty.

Applications hy dairy companies aiid other guarantors for acceptance of their guarantees in support of loans granted under Part 111. of the Rural Intermediate Credit Act. and lor the increase of the limits already imposed hy the hoard in regard to guarantees previously accepted, were dealt with at the meeting, in addition to proposals involving the utilisation ol the discounting method of granting advances. Up to the present, thirty-four companies and linns have concluded arrangements with the hoard to guarantee loans to clients or suppliers, of which twenty-six are dairy companies. In all fifteen concerns have completed arrangements to discount notes and hills.

A considerable number of applic"tiriis for loans were considered hy the hoard. These apnlieations are additional to those which are dealt with hy the district hoards under the powers delegated to them hy the board. Notwithstanding the tact that at this peiiod of the farming season the demand for financial accommodation on the n•• rt of farmers is usually less marked, a steady volume of applications of a satisfactory nature is being received, and it seems, before next farming season eomniences. that, a substantial sum will have been lent out hy the hoard upon rural securities.