AN AGRICULTURAL BANK.

Shannon News, 13 July 1926, Page 3

AN AGRICULTURAL BANK.

On Friday evening Air Me Alpine, Dominion Organiser of the N.Z. Farmens’ Union, addressed about 20 members of the Shannon branch, of the N.Z. Farmers’ Union on the question of the formation of an agricultural hank in- the Dominion. In opening his address he said he would first of all clear up the continuously common statement that the Farmers’ Uijion was the hig man’s union. This was a-most erroneous statement as fully 90 iper cent, of the fanners in the Dominion were dairymen. There were very few hig farmers in the Dominion to-day. He explained that the Union was run :by only the most worthy men and that every section : of the dairying industry was repre- j seated by the best men possible, who | worked with the one idea to benefit 1 .the farmers of New Zealand. • ! In dealing with the question of an I agricultural bank he said the farmers ! had got to fight fo:r it and lie would j urge them as commonsense farmers ’ to be loyal to their leaders. He said agricultural hanks were not a new thing. They had been in existence for over 300 years, Russia claiming to be the birthplace. Now they were to be found in nearly every country in the world, as it was recognised they were the means of providing the farmer with cheaper money and longdated loans, thereby increasing primary production. It had been said that if farmers could not manage their bank better than they had some of their institutions they had better leave it alone. , Losses made tby the farmers’ institutions had been made owing to .the farmer being unable to- pay his debts. The banks had been thoroughly tried and had never failed. He < said the bank would only be available to farmers and they could get all the money from Ehgland they wanted because of the adequate security behind it.. Each borrower would subscribe in shares to cover mutual liability, .as for instance,' if a farmer was.,getting a loan of £IOOO he would take up £IOO worth of shares, which money would be repaid to. him when the loan was paid* off. Loans would 1 be advanced on 66 per cent, of the productive value of a property taken over an average of five , years. In each district a committee of three would be appointed; to investigate applications and they would be men who would have a thorough knowledge of that particular district. If mney was required to bring in unimproved land they would advise progress payments as the work proceeded. Naturally the good farmers, would get the largest advances. The speaker also dealt at length of the benefits derived from the agricultural banks m United States and Denmark where, he said, farmers are able to get long dated loans a.t 4.} and 31 per cent.. The address proved most interesting and Mr McAipine was accorded a hearty vote of thanks.