THE LAND BANK.

Shannon News, 6 October 1922, Page 3

THE LAND BANK.

GOVERNMENT SCHEME TO HELP

SMALL MEN.

STATEMENT BY PRIME MINISTER

Speaking at Mr Field’s- banquet In Levin this week, the Prime Minister made an important statement in regard to a State Land Bank. Mr Massey said, that, as Minister of Finance, he had been thinking out some method of improving the finances of the people generally. One of our wants at the present time was several millions of money available for lending on

mortgage. (Applause.) There had been a tremendous amount of borrowing by local bodies, and that form of security was looked on with more favour than farm lands. There was precious little money going to the

farmer at present. Fortunately the moratorium was not coming off just yet. Hei had been looking into the subject of agricultural banks, and a

committee had been inquiring into the position. He Avas ' bound to say that they found the result rather disappointing,. but were not going to let it go at that. An agricultural bank was not going to be much good unless the Government found the money

or placed its guarantee behind it. He was going to put legislation through to allow' people to take advantage of the agricultural bank system if they wished, but the experience of the people in regard to joint and several securities had not been very satisfac-

tory in the past, and that was the position of the land banks. Continu- , ing, the Prime Minister said a sum of two millions was being paid into the Advances Department within a day or two for loan on mortgage. They would not be able to lend it at

per cent, because it cost 5 per cent, perhaps a trifle over. He proposed to lend it at 5j per cent. (Applause.) He was going into a new departure with the heads of the lending departments, by which it was hoped to lend money on chattel security. There were numbers of small farmers, thoroughly re-

liable and hard-working, who had precious little capital, and there were many men who would-like to make n start in a small way but had not got the cash. Mr Massey instanced a settlement in Canterbury where men . were put on 5-acre blocks and were all doing well. This class of farmer was not looked on with favour by the banks and lending institutions. It w,’.s suggested that they should get

advances of £250 to £3OO. The Department could do that without any serious loss to the State. It was practically copying the 1 , one variety of agricultural bank that had been a. great success. They were going thus to try and benefit the small farmer. (Applause. “And they say,” added the speaker, “that this is a big man’s Government.”