INTERMEDIATE CREDIT

Evening Post, Volume CIX, Issue 88, 14 April 1930, Page 13

INTERMEDIATE CREDIT

MONTHLY MEETING OF BOARD

The monthly meeting of the Bural Intermediate Credit Board was held in Wellington, the following membors^being present:—Colonel J. J. Esaon (chairman), Messrs. J. W. MacGonald (Commissioner of Kural Intermediate Credit), Norton Francis, T. E. Corkill,' J. Brown, B. E. Hayes, J. N. Massey, M.P., and \V. Waddel. , • : The Commissioner reported that tho board's, business showed very satisfactory progress, and thdt there:was every indication that a material increase would be recorded daring the coming winter months. Apart from, the normal development of the board's business it is anticipated that- the reduced returns which are at present being derived from sheep and dairy produce; and the increased . cost of. -obtaining financial accommodation : through .the ordinary channels will result in-an increased , demand upon the board ,by farmers... In this connection jt..is.._of interest to record that the rate- of interest charged to borrowers under, all headings remains at 6J per cent, per annum. ' . ■ < ' . '

■ ..Action is being taken.to form. further co-operative-rural intermediate credit associations in different parts of the Dominion for the purpose of providing farmers in the districts concerned with a ready means of submitting their applications for loans to.the board. During the past month.- consent was giyeii to the registration- of: the association formed in the, AVhangarei district, largely as a : result of interest shown by the directors of the ■:. Maungatapeire Dairy 'Fa-ctory; The-: statutory ■, meeting of tho association is shortly to-be held, and it will immediately thereafter commence., lending operations which will cover the requirements •of suppliers, to, practically. all .the. dairy companies in the- Wharigarei district. The formation of an association in the Balclutha district is also assured, ami it is anticipated that the ■ association will bo in a position1 to make loans at an early date. Movements to form associations in the "Waikouaiti-Palmers-ton district aiid in, the northern and eastern portions of the Southland district are well advahcedj and. in "all instances prominent farmers in ihe'locality have promised to lend their assistance.by becoming members of the associations oven although they do not personally require to avail themselves, of the facilities to : be provided, In the Hawkes Bay district consideration is being given to the formation of associations in the various parts of the district, to serve ,the financial needs of the- farmers, and^ meetings arc being arranged so that the intermediate; credit scheme may be explained-to intending members of the associations, and, the formation of the associations given definito consideration. . ...

The proposals to form, associations mainly affect ■ sheepfarniing districts, and may be ascribed-to the recent increase to the limit-for, loans granted by the board from' £1000 .to £2000, making the system suited, to .the needs of sheepfarmors and grain-grow-ers than was previously, the case, and the subsequent provision by the board of an overdraft or limit system1 for sheep and grain accounts. The active interest displayed by these classes of farmors: is an assurance that-the credit facilities ■provided by the board are well suited _to their needs. .' .; . ■ . '.

At the meeting the board dealt with a number of policy matters arising out of the increase of business, with sheepfarmers. The volume, of-; business ..transacted with dairy farmers is also' being well and should increase rapidly during .the ... coming .winter months when the greatest .financial demands are made. It is clear that there is a steady change-over lon the. part of these farmers to the' intermediate credit system. ■.. In- : the. case ■of the dairy loans granted by the board prior to the commencement; of the season or during tj^e. early portion of the season the -annual repayments; prescribed by the- board have in the majority of eases now been received in full, thug making it possible for, borrowers to receive their milk cheques without deductions during the winter months. The substantial repayments received have been applied by the board in the granting of financial accommodation to other borrowers.

The board dealt with a report as to the applications and other matters affecting the board's lending; business dealt with by the local committee of the, board, and confirmed the action taken by it. The committee, which is comprised of three members, of the board resident' iii Wellington/ meets weekly or more frequently if "required to ensure that sucli matters ■ are dealt with promptly. . .' ■ ■