The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, NOVEMBER 9, 1932. RURAL CREDITS.

Hokitika Guardian, 9 November 1932, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, NOVEMBER 9, 1932. RURAL CREDITS.

The annual report of the Rural Intermediate , GVeuit ’ : Board shows ‘ that lor the year'ended on' June 3jth.'‘Wt, loans paia out totalled £127,034, as against £317,711 for the previous year, inis' decrease’ was due to the policy of caution which the board thought it prudent to adopt under the present unsettled conditions. The board states, however, in the report which it has presented to Parliament, that it aid not decline any account where it appeared that the applicant would have reasonable prospect of meeting liis commitments. The board begins its new financial year .with an adequate -supply of available funds which will not only enable it to meet all legitimate requirements by way of new loans or by further advances to existing borrowers' for productive purposes, but will also permit it to relax to ia certain extent the restrictions hitherto imposed, afid to accept a limited number of good' accounts having as their object the discharge of existing liabilities to other financial institutions. In the previous report it was stated that tho Government had made available to the board for administration a sum of £100,060 to assist farmers to purchase. fertiliser on easy terms, and the conditions upon which loans were to be made were set forth. : The demand for assistance was not as great as had been expected; and' from July 1, 1931, to March 31, 1932, loans totalling only £11,034 were made from the fund. The fund was made available only for the financial year ended March 31, 1932, and the Government having informed the board t that no further moneys were to be made available after that date, the granting of loans .was .suspended. ' The’ sum of £782 was advanced by the board prior to July T, 1931, so that the. total advances from the fund amounted to £11,816. The total number of cooperative rural intermediate credit associations formed and' in active operation at the' end of the year was forty-one. Since the end of the year two-further associations had been formed'—the Central Hawke’s Bay Association, with headquarters at "Waipukurau, and the MiercCmß Bay ' district. Proposals are on foot to form further ir.sscciations in' other districts throughout tho Dominion, The method of adbancibg money direct to farmers under Part 111. of tho Act, by which a guarantee acceptable to the hoard is required as collateral-security in iaddition to « mortgage on the borrower’s stock and chattel's, had/ proved of benefit to numbers of farmers. The position of the loans thus granted was generally satisfactory, though some individual accounts were causing concern. In only two oases during the year were realisations of securities necessary. The board expresses appreciation of the action cf dairy companies in supporting with their' guarantees apiplications for loans made by their suppliers. The accounts to June 30 last reveal an increrise in the gross income cf the hoard from £28,916 in the preceding year to £31,890. The expenditure totalled £24,716, compared with £20,579 for the ; previous year. The interest profits for the year totalled £7174 2s sd. The total .investments amount to £710,200, an increase of £39,647 on the previous year’s figure. The redemption fund totals £161.675. Bearing in mind the' exceptionally difficult conditions' which have prevailed throughout the period under review the hoard feels that the result cf the year’s working must he /regarded ais satisfiaefioky. The organisation of tho board is completely established, the relations with borrowers, directors of rural intermediate credit associations, and guaranteeing companies have generally been excellent, and the fact that the board has be'en able in a time of unusual difficulty to transact business amounting in all to close on £1,000,000 with negligible' loss is a testimony to the care and attention which have been given to the system by nil those connected with its administration. The hoard has in hand sufficient funds to enable it to meet all legitimate demands likely to be made upon it in the coming year, and will continue to show to borrowers the utmost consideration which is possible in view cf the board’,s , obligations to its debenture-holders..