INTERMEDIATE CREDIT

Hokitika Guardian, 25 January 1930, Page 6

INTERMEDIATE CREDIT

MONTH BY MEETING OF BOARD

At the monthly meeting of the Rifral Intermediate Credit Board, the following members were present. Coloijel J. J. Esson (chairman), and Messrs. J \V. Macdonald (Commissioner of Rural Intermediate Credit),' Norman I‘rafi•cis, J.N. Massey, M.P., John Brown, T. E. Corkhill and AY. Waddell. An official report of the proceedings has been issued as under:—

A report as to the applications and other matters affecting the board’s lending business dealt with by the local committee of the* board was receive ed and the action taken .by it confirm-; ed'. This committee): which is comprised of three members ( of the board, resident in Wellington, meets weekly or more frequently if required to ensure that loan applications and other matters arising out of the board’s lending business are dealt with promptly. The board approved the appointment of additional valuers in the Waikato district whose services are required in view of the formation of additional cooperative rural intermediate ciedit associations at Te Piike and Whakatane (the Rangitaiki Association.) In each case the valuer was nominated In the directors of the association and his appointment by the .Waikato District Board.

LOANS ON DAIRY SECURITIES

jin the case of loans on dairy securities the payments on account of inter-j est and principal in respect of bans granted hv the Board are secured by orders on the borrowers’ cream cheques. The practice hitherto adopted ha's been to take an order for a fixed per centage of the monthly cream cheques and once the requisite payments have been made the operation of the order is suspended for the balance of 'the season. The hoard, however, has approved of orders being taken for fixed sums out of the monthly cream cheque sufficient to cover the required payments during the farming season, if that course is preferred by borrowers. With a view to providing further elasticity in the administration of the loan accounts the hoard has given important decisions regarding the readvancing to. ’borrowers of sums received out of the realisation of. stock subject to the securities, either by the District Intermediate Credit Supervisors in case where the loans have been granted direct by the board, or by the directors in the case of loans granted through the-intervention of associations. lii addition, provision has been made for further advances within the limit originally approved by the board to he made locally, without reference to the central hoard, in case where the loan has been substantially reduced. The; hoard; gave approval to a suggested arrangement as between the hoard and an important dairy comnany in the Rangitikei district for utilising the intermediate credit system for providing the company’s suppliers with financial accommodation. It is anticipated that, as a consequence,,;a considerable volume of business will he transacted in the district. yThe proposal involves both the utilisation discounting system .bv stock mortgages supported by tlie) company’s guarantee. ’Hie Act of last session amending the Rural Intermediate Credit Act provided for the increase of the maximum amount of the loan which could be obtained from the, hoard by any one!)borrower from £IOOO to £2OOO, and as ftliis increased limit resulted in the system being more suited, to the needs!,., of sheep-farmers and. grain-growers than was the case under the original limit the hoard gave consideration to the setting up of a special system which provides the faciliies required by these classes of farmers. The details of the new system have been finally approved by the board and) the system is.'|lready being availed' of by farmers. *