HELPING THE MAN ON THE LAND

Taranaki Daily News, Volume LIV, Issue 68, 11 September 1911, Page 3

HELPING THE MAN ON THE LAND

CO-OPERATIVE RANKS. NOVEL SCHEME OF LAND SETTLEMENT. In the course of the Financial Statement, the Premier said: It is desirable to enable small men or small associations of men, to whom credit is not readily accessible under our existing banking system, to obtain it for productive purposes, or purposes insuring economy. This, in my opinion, ran be done by the formation of farmers' : associations of even comparatively small numbers. I propose to submit a scheme to enable this to be done. These will be incorporated, and empowered to borrow money for purposes of loan to their members on such security as they think fit. Rut repayment of money so borrowed will be guaranteed under proper conditions bv the State. This will enable it to be obtained at reasonable rates of interest from the ordinary bank, and if not so available then from other sources. Each member of the association will be subject to proper safeguards and conditions and be liable for the default of any one of their number. This last provision, it is conceived, will prevent waste or abuse of the system. The security for a loan to a small farmer under such a scheme is not as necessary as it is under present banking methods—the value of the property the small farmer can offer, but rather the industry, character and skill of the farmer himself. Such a scheme provides for an expert test of the moral risk involved in the personal knowledge the lending associations will have of the borrower, and for a watchfulness secured by a keen sense of collective responsibility cjf the capacity of the borrower to turn the loan to profitable account. Thus the qualifications of the small farmer for his business becomes in a large measure the security on which he can borrow, and -men with small, or even no material security, can obtain capital. Similar schemes lu.ve been found enormouslv beneficial bv small farmers in several European countries. They have not only made capital available to struggling men, but greatly cheapened the rates at which it could be obtained. .In Germany 950 co-opera-tive banks of one tvpe alone keep about £100,0110.000 steadily in circulation in credits in the country. Germany has indeed about twelve thousand of such banks in all, and by far the greatest number are employed in financing agriculture. I have every confidence in stating that as the result of close examination into the matter, this can be done without risk to the Dominion or injury to our financial institutions.

EASY LAXI) SRTTLK.MEXT. The system of farmers' eo-opevntivc banks for certain specified purposes, can usually be employed by Hie family land settlements, which 1 also propose to provide for. These settlements will be promoted on the following lines. Lands now inaccessible, but well suited for settlement, will be acquired by the Crown. Of these there are considerable areas both with native and European owners, as well as areas still belonging to the (.'rown. A scheme of public works will be submitted to provide communication to these areas by road or rail. Application for these lands will be called for and applicants may be of two kinds: (1) Individual applicants: (2) applicants ■as associated settlers. The latter will consist of not less than ten or more than twenty-live men. preferably married men or women with families. ]n neither of these cases will there be allotment by ballot. A careful examination of fitness of applicants- will be made, and suitable areas allotted to either. Public works consisting of roads or railways will be promoted contemporaneously v.'ilh the settlements, and where- applicants ji.rn without the means necessary to enable them to cany mil the work

of bringing their farrs' into cultivation up to a reproductive point, settlers will be offered work on the roads and railways, for either a certain number of days a week, or a certain number of weeks a month. ISy this means I anticipate these settlers will be enabled to carry on until their farms are sufficiently productive to maintain ttwii owners. Ample facility will be givei moreover to these settlers to forir farmers' co-operative banks and so oh' tain capital to help members. This proposal, by eliminating the ballot system will remove much of the present discouragement in failure to draw an allotment, and will also check to some extent the traffic which has here and there arisen in selections under our Land Act, I expect that this system will be applied to private lands to be voluntarily or compulsorily acquired from the present owners, both native and European, and also to large areas of Crown lands. It aims at promoting the dual purpose of public works, development and closer settlement, in order that these associated settlements may be made more attractive to settlers wirli young children. A relief telephone system, connecting the settlers with a centre from which medical aid and other urgent needs may be obtained, will be supplied by the Government.