RURAL CREDITS

Shannon News, 20 November 1928, Page 2

RURAL CREDITS

TWENTY ASSOCIATIONS FORMED IN DOMINION.

LARGE VOLUME OF BUSINESS.

WELLINGTON, Nov. 17

At a meeting of the Rural intermediate Credits Board, a statement presented by the commissioner, Mr. J. M. MacDonald, showed that good progress had been made in connection with the administration of this new system of rural finance, and that a satisfactory volume of business had been transacted by the Board under all headings. At the meeting, consent : was given to the registration of rural intermediate credit associations formed in the Wairarapa district and at Te Aroha, while it -was also reported to the Board that a further association had been formed at Wright’s Bush in the Southland district and will shortly be approaching the Board for consent and registration as preliminary to commencing active lending operations. The information before the Board as to the personnel of the Wairarapa and Te Aroha associations indicates that the associations are composed of a very satisfactory type of farmer, and it may be expected that the operations of these associations will reach substantial dimensions upon a sound basis. The total number of associations formed throughout the Ddminion is now 20. ' Applications by dairy companies and other guarantors for acceptance of their guaranties in support of loans granted under part 111. of the Rural Interjnediate Credit Act, and for an increase of the limits already imposed by the Boaru in regard to guarantees previously accepted, were dealt with at the meeting, in addition to proposals involving the utilisation of the discounting method of granting advances. Up to the present, 34 companies and Arms have concluded arrangements with the Board and guarantee loans to clients or suppliers, of which 26 are dairy companies, while 15 cvucerns in all have completed arrangements to discount notes and bills.

A large number of applications for loans were considered by the Board,' these applications being additional to those which are dealt with by the district boards under the powers delegated to them by the Board. Notwithstanding the fact that at this period of the farming season the demand for financial accommodation on the part of farmers is usually less owing to the market being steady. A volume of applications of a satisfactory nature -is being received, and it seems that before the next farming seasoj* commences, a substantial sum will have been lent out by the Boardrupon rural securities.