LAND PROBLEMS

Sun (Auckland), Volume 1, Issue 16, 9 April 1927, Page 18

LAND PROBLEMS

FACILITIES FOR FINANCE INFLATED LAND VALUES The farmers of the Dominion have persistently demanded facilities for agricultural credits beyond those available in the past. During the last session of Parliament, says the “Mercantile Gazette,” a part of the recommendation of the Rural Credits Commission was adopted by the Government, and the Advances Department was authorised to give effect to the Government’s scheme. In addition to this the Bank of New Zealand was authorised to establish a long-term mortgage branch, and those schemes are now in operation. Whether they will meet the demands of the agricultural classes remains to be seen. Land values generally are said to be inflated, and how far this will affect the lending institutions named in carrying out their objectives cannot vet be ascertained, but it is obvious that lenders cannot be expected to make advances on inflated land values. A year ago the Irish Free State Government appointed a Banking Commission to investigate questions relating to agricultural credits, business and public finance. This commission was of unique con position, and included British. American an l colonial banking interests. CREDIT CO-OPERATION NECESSARY This commission has issued its report, in which it is recommended that to assist agriculture in Ireland, the establishment of an Agricultural Credit Corporation is necessary, which is to act as a clearing house for local co-operative credit societies, to deal directly with co-operative creameries, and other types of trading societies of a definitely agricultural nature; to promote, if possible, federations for marketing purposes, and in general to assist in financing the manufacture and sale of agricultural products. It may make loans to individual farmers, or groups of farmers, for productive purposes, or for the improvelm nt of holdings, buildings, and equipment, and may also rediscount bills, and purchase or sell bills and other securities in the open market. The corporation is not in any undue wav to be permitted to interfere with the commercial business of the banks, nor should it object to the entry of th latter into the agricultural field. The facilities provided in New Zealand practicully equal what is proposed to be put into operation in the Free State. The difficulty that will be experienced in New Zealand is that our farmers are not attached to their holdings; most of them are ready to quit immediately if a fancy price is offered.