AGRICULTURAL CO-OPERATIVE BANKS.

Taranaki Daily News, 21 May 1918, Page 3

AGRICULTURAL CO-OPERATIVE BANKS.

TH'EIK ESTABLISHMENT URGED. The necessity for establishing agricultural. banks in the Dominion was the subject of discussion at the Taranaki Farmers' Union Conference on Thursday last. Tiie Otakeho branch submilted a remit that the time had'arrived when, in the, interests of the Dominion, agricultural co-operative banks should lie established in the Dominion. Mr. Dourkc, in moving the adoption of tiie remit, said he realised that tills opened up a very big question, foo big a question. in fad, for him to tackle. Agricultural co-operative banks had 'been started in fiermany, where they had proved a. great success, and had greatly incensed Cermany's national wealth. They had also proved successful in the United States. India, and Canada, and therefore he did not see whv they should not be equally successful in New Zealand. AM would admit that there were benefits in dealing with a bank, because they onlr paid money on the actual interest thev owed, and did not, as in the case of a loan for a definite amount, pay whether they used all the money or notHe did not think that tiie banks at present were altogether in the interests of the small man or small farmer. At the present time, with the high price of land, high rates of interest and taxes, it was impossible for many farmers t.o go in for intensive farming. The establishment of co-operative banks would solve the problem. If the Farmers' Union could bring about- their establishment, it would be one of the best advertisements they ever had. Not only would they nrove beneficial to the country, but also to the towns, because the more intensive farming find closer settlement would enable more money to be spent in the towns.

Mr. Buekeridge, in seconding. said that the subject was a most important one, and in the time at his disposal he would merely touch on the fringe of so vast a subject. Agricultural hanks had been first started in CJermanv 70 years ago, so they could learn something from the enemy—-their friends in this case—in the organisation of their agricultural industries. lie read a couple of short extracts from valuable hooks dealing with the subject, as follows:—The first wa,H from "People s Banking." "The question now suggests itself: Has this marvellous wealth-producing power 110 gift for ourselves? i\Vc are thus far the only civilised nation that, lias done without. la that because there is 110 need, there are no opportunities to be improved, no labor that lies idle for want of eapita-l to employ it?" The other extract was from "Co-operative Hanking":—"From ISOd to 1900, Germany has, to a large extent through her credit banks, fought us in industry and commerce with our own money, for which, without similar institutions, we can find no use. Men of business want them, to keep money plentiful, and to make it cheap. The useful action of co-operative -banks in ■Germany lias, where they are to be numbered by thousands, reduced the current rate of interest for money, as their advocates will have it, by a full 1 per cent., certainly by an appreciaiblo proportion." Continuing, Mr. Buckeridge said that in 1910 Germany advanced about £240,000,000 for the purpose of putting poor men on the land. This vastly in" proved the earning power of the country If something like this could be done in New Zealand, it would be worth while, and it could be done by the establishment of such institutions. The lands in the Dominion must be settled for the purposes of reproduction. One of the finest assets of this country was the character of its people, their integrity, and their hard work; but few of them could get credit except upon the security of land or capital of some kind, whereas in Germany a man could obtain advances provided lie could get two of his neighbors to guarantee his integrity. Mr. Owen considered that there was an immense future before this question, and the sooner it was taken uo in real earnest the better. They could take a leaf out of their Allies' -books—France, in particular—without going to our enemy. Mr. Buckeridge: They learnt it from France. The president also favored the remit, -which ho considered was a matter that wight be taken up by the executives in the various provinces. Mr- Buckeridge: Let us "retain the credit for starting it. Mr. Lambie asked whether legislation would bo required, as ho understood that (lie Farmers' Co-operative Society in Canterbury was now advancing money. The secretary considered legislation would he necessary. Thfi remit was adopted.