RURAL CREDITS BOARD

Sun (Auckland), Volume II, Issue 515, 19 November 1928, Page 12

RURAL CREDITS BOARD

ORGANISATION EXTENDS WAIRARAPA AND TE AROHA ASSOCIATIONS Press Association WELLINGTON, Saturday. At a meeting of the Rural Intermediate Credit Board the statement presented by the Commissioner, Mr. J. W. 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. Consent was given for the registration of Rural Intermediate Credits Associations formed in the Wairarapa district and at Te Aroha. It was also reported to the board that a further association had been formed at Wright’s Bush, in the Southland district, and would shortly be approaching the board for consent for registration as a preliminary to commencing active lending operations. 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 Dominion is now 20. DAIRY COMPANY GUARANTEES Applications by dairy companies and other guarantors for acceptance of their guarantees in support of loans granted under Part 111. of the Rural Intermediate Credits Act, and for an increase of the limits already imposed by the board in regard to guarantees previously accepted, were dealt with, in addition to proposals involving the utilisation of the discounting method of granting advances. Up to the present 34 companies and firms have concluded arrangements with the board to guarantee loans to clients or suppliers, of which 26 are dairy companies. Fifteen concerns in all have completed arrangements to discount notes and bills.

A considerable 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 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 marked a steady volume of applications of a satisfactory nature are being received, and it seems that before the next farming season commences a substantial sum will have been lent out by the board upon rural securities.