MONEY FOR FARMERS.

Taranaki Daily News, 10 November 1922, Page 5

MONEY FOR FARMERS.

HELP BY GOVERNMENT NEW LOAN FACIUTIES. y TIDING OVER DIFFICULTIES. The difficulties that some farmers had in meeting their engagements were referred to by the Prime Minister in his speech at New Plymouth last night. Mr. Massey said he had arranged for officers to visit various districts and where . possible get the mortgagee and mortgagor together to make home satisfactory adjustment. Up to recently over 100 eets of people had been brought together and had made amicable arrangements. A great deal more would have to be done in that direction, because they had got to look for the end of the moratorium period, which would be next year. Farmers’ organisations had approached him regarding the formation of farmers’ banks. lie was willing to help them and he had done so. This, however, would take time to arrange, because they were not accustomed to them. He trusted to do something next weason. During the last few weeks he had paid £2,000,000 into the Advances Department, and though he did not wish to be too optimistic, he hoped next year to be able to pay in another £3,000,000, increasing the fund by £5,000,000. That amount would be available for lending purposes. He would not be able to lend it at 4% per cent., though it was possible to borrow nt the lowest rate, because the security of New Zealand wa* splendid. The Government, lie said, had even gone further. They wanted to get aa near to the agricultural bank system as possible and had arranged a new department. They had arranged for |he Advances Department to leml to small men on chattel security, not on land mortgages, up to £5OO, and this would be very helpful to many dairy farmers, than whom no set of men needed mors assistance, especially those who wen starting. The men at the head of thit new department had special qualifications. He did not wish to make a profil out of the department, but it would b< unable to lend the money at 4| pel cent., as they would have to provide foi a reserve fund. Moreover, .they could not make the term of the loan longei than 5 years. At the end of that time if the borrower proved reliable and energetic, there would be no difficulty in re-arranging the matter. The Advance! to Settlers Department was lending u; to £lOOO at present, and he hoped be« fore long to be able to raise this to £2OOO.

Mr Massey stressed the point that the department was not out to lend large sums, but was trying to help the smaller man—the bona fide settler and not the speculator. There were other lending departments. The Public Trust Department was lending sums up to £25,000; the Government Insurance wpartment also lent sums to local bodic« r whilst the Superannuation Board also I lent a good deal. \ During the past year the State Advances Department had advanced £805,975 to settlers, £407 580 to workers and £798.410 to local bodies, a total of £1,921,905. The Public Trust Office had loaned £1,583,975, and the Government Life Insurance Department £201,860, a total of £1,785 824. The whole amount lent totalled £3.707.801. which he considered a pretty good record, in fact, the department was not weaker, but was stronger than ever. But the demand was greater than the supply, and that was one of the difficulties they had to meet.