CO-OPERATIVE BANKS
GOVERNMENT BILL CIRCULATED. PRIVATE LENDERS' INTERESTS. The Farmers' 00-operative Banks Bill, which, as already announced by Sir Joseph Ward, is not to ; be proceeded with tliis session, was lated yesterday. • It provides that any ten or more farmers- may .become incorporated as a co-operative bank. A farmer is defined as any person over 21 years of age who, being himself in occupation of land, "uses the same either entirely or .principally for the production of grain, stock, fruit, or dairy or poultry produce." Each bank is to be registered under a separate, name, with the Registrar 1 of Incorporated Societies, and oil a refusal to register there is given the rigKt of 'appeal to the Govenior-in-Coiuic-iJ. Banks incorporated under the Act are not required to have a .registered office, bpt every bank shall have a board of management of not 'ess than five members, the chaurhiaU' to be elected annually, and throe to form a quorum. The chairman is to be f'e manager of the bank, and no member of the Board is to be entitled to receive any remuneration, except reasonable travelling expenses. The State Loans Department is empowered to snake advances •'<) banks not exceeding in any case, and all such loans are to be a charge on the landed interests of tin?" members. Advances are to be strictly limited to the extent of the landed interests ot the ; members of the bank. Companies at present carrying on large lending business with farmers will be'interested to know that cla l -.o 10 provides that "with the approval of the Minister of Finance in each cass any person or company other than the otate Loan Department may advance to any member of a bank (under this Act) such sum not exceeding in any. case the sum- of £sou as the Board approves. All isuch advances and interest tliereon shall, be guaranteed .by the Government," No advance is to be made to any member of a bank for any purpose other than the improvement or carrying 011 of his farm. • The Bill also contains provision for payment by Hanks to the superintendent of the State Advances Department (called the State Loans D' - partment under tlio Bill) a fee m 'proportion to the ariiount advancedby the bank. There is also provision for the •winding' up of banks and for tiw making of rules and regulations governing procedure.
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https://paperspast.natlib.govt.nz/newspapers/WAG19111025.2.22.11
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Wairarapa Age, Volume XXXII, Issue 10459, 25 October 1911, Page 5
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397CO-OPERATIVE BANKS Wairarapa Age, Volume XXXII, Issue 10459, 25 October 1911, Page 5
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