SMALL FARMERS BENEFIT

Sun (Auckland), Volume II, Issue 581, 6 February 1929, Page 11

SMALL FARMERS BENEFIT

(Kr-in

ASSISTED BY SHORT CREDIT

Since the inception of the new system of rural finance a substantial volume of business has been transacted by the board in the Auckland Province, and many small farmers have benefited financially. The first issue of £200,000 debentures has been taken up. In a review of the system’s operation in Auckland, the Commissioner of Ruriil Intermediate Credit says the provisions for the formation of co-opera-, tive rural intermediate credit associations among farmers have been extensively availed of in the Auckland district, and of the 20 associations formed throughout the Dominion. 11 are in the Auckland province. They are the following; Northern Wairoa (with headquarters at Dargaville), Otorohangu, Hauraki (with headquarters at Paeroa). Helensville, Waiuku, Hamilton, Morrinsville, Te Awamutu, Te Kuiti, Taumarunui, Te Aroha. The majority of the associations are in full operation and are dealing with applications from their members for advances, the volume of business dealt with in some cases be'ng substantial The funds which are advanced by associations to their farmer members are obtained on loan from the board. All applications made by members for are considered in the first place by the directors of the association, and then submitted to the board. DAIRY COMPANIES ASSIST In regard to applications direct to tho board by farmers who are not members of co-operative rural intermediate credit associations, it is necessary for any loans granted in this manner to be guaranteed by a company or person approved by the board tor not less than 20 per cent, of the amount of the loan. Several companies, mainly dairy companies, have undertaken to guarantee loans granted by thq board to tho suppliers; and up to the present the board has agreed to accept the guarantees of 12 companies up to a limit agreed to in each case between the company and the board. The board has borne in mind that applications should be considered as expeditiously as possible, Mr. McDonald explains, and it has delegated to the district boards constituted throughout the Dominion the power to grant loans up to amounts not exceeding £250. Applications exceeding this amount are forwarded to Wellington for consideration by the board. In order that there may be Do delay in connection with these applications, a committee of members of the board resident in Wellington meets weekly between board meetings to deal with applications for loans and other 1 matters requiring attention.

FINANCE ARRANGED The main source on which tlie board relies lor its funds for making advances to farmers is the issue of debentures to the investing public. The first issue of £ 200,000 has already been made and has been fully taken up. This issue was a private one and the money was obtained without any expense to the board other than the cost of printing tho debentures. It is anticipated that, when these funds are exhausted, the board will have no difficulty in obtaining additional funds by the issue to the public of further debentures. “In view of the large number of applications which the board anticipates receiving when farmers begin to make their financial arrangements for next season, it is desirable that applications should be lodged as early as possible. This will enable the necessary valuations and other formalities to be completed in good time before the loan moneys are required to be paid over. In this connection it may be pointed out that interest is charged by tho board only from the actual date on which : loan moneys are paid to the borrower.