FARMERS' BANKS.

Auckland Star, Volume LV, Issue 261, 3 November 1924, Page 5

FARMERS' BANKS.

THE PRIME MINISTER'S VERSION. .STATEMENTS CHALLENGED. The Prime Minister's statements regarding farmers' co-operative banks in Denmark and the United States of America are challenged by Lawrenc. Johnstone, the farmers' bank advocate, who refers to them as "grossly inaccurate and utterly misleading." The statement that "the U.S.A. only provided f 1,800,000," whereas the correct amount is 54.000.001 l dollars, over £10,000,000. is a fair sample. That in only the initial capital, and the Government also pun-bused very large issues of farm mortgage bonds. In both countries the motgage bonds are tax free, and in Denmark, at least, a special Act mftkes these iK.nds a security for trust funds. Regarding the limitation of amount of individual mortgages, there is absolutely no limit cither in Denmark or the United Slates, so long as the security vs offered. The limitation referred to by Mr. Massey applies to quite a different" mailer -the 'system of advances by ..ur Government ltselt under a scheme to help ihe r-mnll holder. Inner this provision the limit (* £.i,io if |ess than _* acres, and £070 if less than li acres. The statement that "borrowers must, personally handle the bond" and take the risk'of disposing of them," is no longer correct in Denmark. Since |B1?>. when the Central Co-operative Bank was opened, the Wrowcr merely gives notice that, he require', rash for his bonds, and be can get it. I through his own branch bank, from the Central Bank the turnover of which has increased from £51.000.000 in lDl.i. io nearly t1.000.d00.000 last year. In the United Slates the Federal (o-operathe Banks do not hand the liorrowers tinbonds, and never have done so. The borrower receives the .-ash. The "Saturday Evening Post says that" the United States of America has probably provided facilities, directly and through other banks, for live billions of farm credit.'' Mr Johnstone concludes thus: v itn the exception of the last statement, which every member of the House has. I understand, received, all the facts and figures I have quoted may be checked in the Government Agricultural Library, and (with those of fifty other countries i are available to ih- Cabinet and member, of Parliament. There are inanv other mis-statements regarding these o-operunve banks, but th.-<e rreetion- should suffice to show hOW .nnd, reliance can be placed on the Prime Minister's statement, ill this matter. Probably it is due O ignorance. His reference to those advocating farmers' l.auk-. I uill .»-- by."