INTERMEDIATE CREDIT

Hokitika Guardian, 26 November 1930, Page 2

INTERMEDIATE CREDIT

thirty-eight associations

FEW BORROWERS IN ARREARS

Further progress lias been made in various parts of the Dominion with the formation of co-operative rural Intermediate credit associations with the object of facilitating the submission by loans according to- statements at the monthly meeting of the Rural Intermediate Credit Board ill Wellington this week by the Commissioner or Rural Intermediate Credit, Mr J. W. Macdonald.

Colonel J. J. Esson presided, and there were also present Messrs J. \Y. Macdonald, J. Brown T. E. Corkhill, Norton Francis. J. H. Massey, M.P., and W. Wad.de!.

Since the previous meeting of the board the Northern Hawke’s Bay Association, with headquarters at Hastings, had been registered and the statutory meetings of the associations formed at Papakura and Pnhiatua had been held.

Definite progress had been made toward the formation of an association in the Utaniatea district (North Auckland) The existing proposals to form associations in Mangonui (North Auckland) and in the Thames Valley, Central Hawke’s Bay, Marlborough and Banks Peninsula districts have also continued to receive attention, and it is anticipated that associations will sliorly be formed there, The total number of associations formed up to the present is 38, The commissioner reported that the annual meetings of the majority qf the existing associations had been held recently, ' The accounts presented to the meetings indicated substantial increases in the business recorded by many associations, although in some cases the farmers in the districts have not taken full advantage of the benefits of the system. General appreciation was expressed of the advantages conferred by the system, the consideration given by the hoard to the recommendations jof -directors of associations and the relations existing between the associations on the one hand and the board and its local ■officers on the other. The board received a report as to the cases in which borrowers, either direct from the board or through associations, were in arrears with their payments. Despite the adverse economic co-n----ditions prevailing and the fact that prevision is made in the ease of every loan for a substantial annual reduction of principal in addition to the payment of interest, there were comparatively few cases in which arrears of payment existed. This position was considered by the board to be extremely satisfactory. The hoard confirmed the action taken by a local committee in regard to loan applications and other matters dealt with since the previous meeting of the board,

Although the period of the year during which farmers as a rule arrange for their financial requirements for the productive season is now past, applications continue to he received steadily, this indicating an increasing tendency on the part of farmers to avail themselves of the intermediate credit system. It is anticipated that a subsantial volume of applications will continue to be received throughout the summer months.

It was reported to the hoard that sufficient funds were avilable to meet the requiremnets of applicants for some considerable time.