FINANCE FOR FARMERS.

Hauraki Plains Gazette, Volume XXXIX, Issue 5312, 13 August 1928, Page 4

FINANCE FOR FARMERS.

RURAL INTERMEDIATE CREDIT.

THE BENEFITS 'OF THE ACT.

Dealing with the benefit to farjneiry of the Rural Intermediate. Credit Act in. the financial statement the Minister of Finance (Hon. W. Downie Stewart) points out that: “The independent organization for bridging the: gap beween the long-term mortgage finance .and the facilities offered by co,miner ci al banks, provide! for under the legislation passed last session, is now in ftill operation. “Briefly, the: object is to enable fanners to obtain credit on the security of stock and chattells at reasonable rates of interest, principally by encouraging thie. application of the co-operative principle through the formation of rural intermediate credit associations. Eleven such associations have' already been formed, and committees are .actively at work with the object of forming others. Those provisions of the Act which enable (loans: grafted direct to farmers with the collateral guarantee of some substantial p’er, s ion are being made by dairy companies a.s a means of assisting their suppliers to obtain the benfits of the system. Applicants will receive every assistance from the sixteen district Boards, composed mostly of practical farmers and business men. The- intimate local knowledge of these hoards will also react for the protection of the interests of debenture-holders. The Government ha.s assisted the inauguration of the- system, which is purely a commercial concern, by lending £400,000, free of interest for ten years. One-third of this amount must be Invested in Government securities, as the nucleus of a redemption fund for the debentures from the sale of which the .necessary capital will be. provided. A substantial amount of debentures has already been disposed 'Of without resort to. a public issue. It should be clea'rly understood, however, tliat the intermediate credit organization administered by the: Public Trustee is quite separate from the Rural Advances Branch of the State Atlkance's Office, which deals solely with lOjng-terin mortgages, of land.”