FINANCE FOR FARMERS.

Putaruru Press, Volume VI, Issue 226, 1 March 1928, Page 6

FINANCE FOR FARMERS.

RURAL CREDITS ACT. Scheme Discussed by Union. Discussed at Morrinsville. Following the gazetting of the regulations of the Intermediate Credits Association, the Morrinsville branch of the New Zealand Farmers’ Union discussed the advisability of forming a district association in Morrinsville with the object of taking advantage of the Act to provide finance for farmers. “ I think it would be an excellent idea to form an association in Morrinsville,” said Mr. F. Seifert. There would be a very small liability involved, and he thought it would be wise to be early in applying for a portion of the £400,000 provided by the Government to launch the scheme. Until bonds were sold this was the only sum available.

The president, Mr. J. Allen, referred to the fact that Mr. A. M. Samuel, M.P., in explaining the scheme to members, had referred to the fact that the Act opened up an avenue for public-spirited farmers to help their less-fortunate neighbours by forming themselves into an association, even if they themselves did not wish to take advantage of the scheme.

Mr. G. Pirrit said that Mr. Samuel had stated that in a closely-populated district such as Morrinsville an association would have to be formed to secure finance, and that the individual method of finance would not be applicable. This, it had been stated, was for the convenience of settlers in sparsely-populated districts, where it would be difficult to form an association. Mr. H. Clifford asked whether the farmers comprising the association must live adjacent to one another. The Secretary : Not necessarily. There is no restriction on the area that could be taken in. Mr. Clifford : Could the twenty farmers concerned in the formation be located in sr.ch districts as Tatuanui, Tahuna and Motumaoho, for instance ? The president said he understood that any 20 farmers could form themselves into an association. Mr. T. J. Ryan said he had considered the matter from the point of

view of the dairy companies with the idea of co-operation. The regulations contained a lot of red tape, although the first portion was quite clear to interpret. Members of local boards were entitled to receive an honorarium of a guinea a day and travelling expenses up to £1 10s, which was an interesting point. The regulations were very detailed, and were in fact more bulky than the Act itself. He had not yet had time to fully go through the whole schedule. Mr. Ryan proceeded to explain a number of the more important features of the scheme.

One point was that an association could not be formed until a district board was formed. Apparently this was what had been done in Hawera, where a move had been made. The president said the Commissioner of the Rural Credits Board should be communicated with and requested to form a board embracing the Morrinsville district, so that steps could be taken to form an association.

The Secretary : What district shall we call it—Waikato or Thames Valley ? Mr. Seifert : It should be Piako. At any rate Morrinsville should be the centre.

A resolution was passed on the lines suggested by the president. Mr. Ryan, thought the Act could be worked through the dairy companies, which could use their machinery to foster the scheme. He considered that a move should be made by the dairy companies to amend the Act to make this possible. Mr. Seifert was of the opinion that such an idea should come from the National Dairy Association, and a remit might be forwarded for consideration at the next conference. Mr. G. Pirrit contended that such a project would not prove a success. There were many farmers who were not suppliers of dairy companies, and if the proposal was carried into effect runholders would re excluded. Mr. Pirrit added that the scheme could be better developed by the Farmers’ Union branches. No action along these lines was taken.