RURAL CREDITS.

Auckland Star, Volume LXVI, Issue 239, 9 October 1935, Page 11

RURAL CREDITS.

LOSS FOR YEAR OF £2300.

OPERATIONS OF THE BOARD,

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday.

On its actual year's results tho Rural Intermediate Credit Board last year made a loss of £2323 compared with a profit of over £5000 in tho previous year. This is attributed to the reduction of 1 per cent in the lending rate from September, 1934, a decrease in investments and tho fact that since August, 1934, the board has teen unable to make arrangements for the temporary investment of its surplus funds. As a result large balances remain uninvested.

During the year the board made advances to associations of £195,512, advances to farmers of £62,338, and discounted bills totalling £1442. In seven years, having loaned £1,138,000, the board has only made losses totalling £504. However, the report shows that one association which liquidated has paid 15/ in the £ and receipt of a dividend to meet the balance is assured. Losses on loans granted by the Central Southland and Mid-Canterbury associations have been met by calls on their shareholders. Another association which made a loss met its deficiency from paid-up capital and reserves, while two substantial losses by another association whose capital and reserves are exhausted make winding up desirable. There are 41 associations carrying on business and the report states that there appears to be no likelihood of the early transfer of control of the rural intermediate credit system to the Mortgage Board.