RURAL FINANCE

Hokitika Guardian, 7 February 1929, Page 2

RURAL FINANCE

OPERATIONS IN AUCKLAND. AUCKLAND, February 5. Since tlie inception of the new system of rural finance a substantial volume of business lias been transacted !>y the board in Auckland province and many small farmers have benefited financially. The first issue of £200,000 debentures lias been taken up. In a review of the system’s operation in Auckland the Commissioner of Rural Intermediate Credit says: Ihe provisions for the lornmlion of cooperative rural intermediate credit associations among tanners have been extensively availed of and twenty associations have been formed throughout the Dominion. Eleven are in Auckland province. The majority of the associations are in lull operation and are dealing with applications from their members, are obtained on loan ironi the board. Ail applications made by members for accommodation are considered in the first place by the directors of the association and then submitted to the hoard. In regard to applications direct to the board by farmers wM> are not members of co-operative rural intermediate credit associations it is necessary for any loans granted in this manner to be guaranteed by a com pany or person approved by the board for not less than 20 per cent of the amount of the loan. Several companies, mainly dairy companies, have undertaken to guarantee loans granted by the board to suppliers, and up to the present .the board has agreed to accept the guarantees of twelve companies up to the limit agreed to in each case between the company and the board. . . . , “ The hoard has borne m mind that applications should be considered as expeditiously as possible, and it has delegated to district hoards constituted throughout the Dominion power to grant loans up to amounts not exceeding £250. Applications exceeding tins amount are forwarded to Wellington for consideration by tbe board. In order that there may he no delay m connection with these applications a committee of members of the board resident in Wellington meets weekly between board meetings to deal with applications for loans and other matters requiring attention. The mam source on which the board relies for its lunds for making advances to farmers is the issue of debentures to the investing public. The first issue of £2(10,000 has already been made and lias been I idly taken up. This issue was a private one. and the money was obtained without any expense to the board other than the cost of printing the debentures. It is anticipated that when these funds are exhausted the board will have no difficulty in obtaining additional funds by issue to the public of further debentures.”