STATE BANKING.

Shannon News, 13 May 1924, Page 4

STATE BANKING.

DAIRY FARMERS' VIEWS

The Wellington provincial executive of the Dairy Farmers' Union met m Palmerston recently, Mr P. J.■ Small, provincial president, presiding. Mr J. H. Taylor (lhakara), who at the last meeting addressed the executive on the subject of State banking, again touched upon the matter. "I realise that the State regulates the living conditions of the people," he stated, "but the ■time-has conic when it should Pint a check on the land gamble." He added that this had resulted in some sections of the community making huge profits. In dealing further with the topic he alluded to the increase in the amount of nvort gages and to tthe bankruptcies of farmers of which (here were HO in 1921. He hoped the executive would take some action to assist the farmer to fight land speculation. • Mr Small -(Newbury): "The firms in New Zealand to-day are lending money cheaper than it can be got in Eng- , land and under these conditions could the New Zealand Government tjive the farmer cheaper money?" He agreed that a State banking system had advantages, hut there were great diflVculties in the way. Mr W. GimMett (Levin): "I thought Mr Tavlor was to bring down some J definite scheme. This is a very knot- [ iy problem." * Mr Williiams (Pohangiiia): "The evils which Mr Taylor seeks to remedy would not, be remedied by a State bank, though an agricultural banking svstem would be of assistance to 1 farmers." He added that they might stutlv the agricultural credit system obtaining in England.. When Dhey asked the Government, for a. State bank Mr Massey Would refer them to the State Advances Department as the best of its kind in the world. However this department had, on the authoritv of the Premier himself, exreoded its limitations and had had to curtail its operations. The speaker . advocated an agricultural banking svsfeni. • ' Mr Teaae said that, if tftie State be.came the sole lending power, it would mean that all lands would virtually revert, to the State, which would impose restrictions on its sale and purchase, such as were found in Queensland. ' It was suggested by' the chairman that they should merely send out to the union's branches brief definitions of State and agricultural banking, and allow them to discuss Ohe matter, when some fresh ideals and some tangible proposals might be forthcom-

ing. The meeting then discussed what should be put before the brandies, the majoritv of members objecting to a. proposal 'in Mr Taylor's suggestion "that the State should become the <<ole borrowing and lending power." Mr Tavlor fiftaJly agreed not. to press this latter clause and moved the following resolution for circulation to"branches: "That a. State bank wiflv an agrieuitural credits depart ment, be established to undertake a'l the. functions of. banking." The resolution was carried unanimously.