RURAL CREDITS.

Auckland Star, Volume LXIII, Issue 56, 7 March 1932, Page 8

RURAL CREDITS.

RECORD OF PROGRESS. FOUR YEARS' ACHIEVEMENT. ADVANCES TOTAL £877,984. PRIME MINISTER'S TRIBUTE. (By Telegraph.—Own Correspondent.) HAMILTON, this day.

The Jirst conference of the kind in the Dominion between representatives of rural credit associations and members of the Rural Intermediate Credit Board, was held in Hamilton to-day, about 50 delegates attending from South Auckland. In a message to the conference the Prime Minister said the growth of the system since its inauguration in 1928 had been steadily maintained, and the results were a source of gratification to the Government. The fact that a new system, to which no parallel hitherto existed in the Dominion, had been enabled within tour years to make advances totalling no. less than £877,984 to farmers, tit a reasonable rate of interest, and under conditions favourable to the borrowers, was a matter for congratulation. The satisfactory result was a tribute to the care with which applications for loans had been considered, and the watchfulness exercised over accounts after the loans were made. Mr. Forbes expressed appreciation of the services of members of the central board and district boards, and the directors and executive officers of the associations. Much of the service was purely voluntary, and tlio whole farming industry was under a debt of gratitude to them. Excellent Prospects. "Although present difficulties rendered the occasion hardly suitable for the immediate and rapid expansion of the scheme," said Mr. Forbes, "I feel satisfied that with a reasonable improvement in the prices of primary products there will be great scope for expansion of the system, with consequent benefit to an increased number or farmers. The careful administration of the. boards -and associations will serve to demonstrate that even it times of acute difficulty.the rural credit system can be successfully administered, and with a returning condition of prosperity the board will be in an excellent position to appeal to investors throughout the Dominion to provide money for investment in the board's debentures, with the object of extending and developing the present facilities."

In his address, the chairman, Mr. J. N. Massey, M.P., eaicl the total amount paid out by tlie board to February 29 was £881,715. The total business dealt with or under consideration at January 31 reached £907,912. The Waikato had shown a greater expansion than any other district. Forty-one associations were operating throughout the Dominion, and there was a probability of more forming. He referred eulogistically to the association's directors and officers and the Public Trust Office. Future Funds. Mr. Massey eaid that in future the board must rely for the greater part of its funds on moneys subscribed by investors in the board's debentures. Unless a satisfactory flow of money were assured the eyeteni could not develop when conditions improved. The board considered that at present there was ••

necessity for the maintenance and increase of production, and that its funds should be made available as far as possible in support of that object rather than in discharging , existing obligations. Relief had been granted borrowers when it was found justified, and the present policy would tie continued in that respect as far as possible. The board insisted on the repayment of the loans within five years. There was a great danger to the funds of the associations and the board at present owing to the unfavourable results accruing where securities were realised. Wherever possible borrowers and securities should be nursed, in order to avoid such realisations, not only in the interests of the funds, but to keep as many as possible on the land.