MONEY FOR FARMERS.

Taranaki Daily News, 4 October 1922, Page 5

MONEY FOR FARMERS.

NEW LOAN SCHEME EXPLAINED. AGRICULTURAL BANKS QUESTION. (By Wire—Parliamentary Reporter) Wellington, Last Night. “The difficulty about agricultural banks is that they are not going to be worth much unless the Government puts the guarantee of the State behind the banks or puts money behind them,” said the Prime Minister at Levin. “I am going to ask Parliament to put legislation through that will enable the people to form agricultural banks if they wish to do so,” added Mr. Massey, “but the principle of a joint and several has not been popular in New Zealand lately, and that is the principle behind agricultural banks.”

The Prime Minister proceeded to sketch his proposal for strengthening the State Advances Office by adding £2,000,000 of new money to the funds available for loan purposes, and by providing machinery for small loans on chattel security. Officers of the department, said Mr. Massey, believed that the system that proved so successful in connection with repatriation could be applied more generally. The new branch of the department would be prepared to make small loans, probably not more, than £250 or £3OO on chattel security. The man who wanted to buy a milking machine or other plant, or to extend his business, would be able to apply for a loan, and if his ease was suitable he would get the money at a reasonable rate of interest.

“If we cannot establish successful agricultural banks we are going to get the result in another direction,” said Mr. Massey. “I am copying the one form of agricultural bank that has undoubtedly been successful.”