RURAL CREDITS.

Auckland Star, Volume LXVIII, Issue 302, 21 December 1937, Page 6

RURAL CREDITS.

Teu years ago, in the Rural Intermediate Credit system, there was established a self-help organisation for farmers Ivhich has been of invaluable assistance in the critical decade since its first establishment. The Board which administered the Act has noNv retired, its duties being taken over by the State Advances Corporation. The Board accomplished splendid service in establishing the system, making large credits available to farmers on stock and chattel securities at a low rate of interest, progressively reduced as money became cheaper. Thirty-six co-operative associations are now functioning as a result of the Board's assistance, and in addition to the £266,000 borrowed from the Board these societies have lent many thousands to members as interest and principal accumulated. Tho annual report of the Morrinsville Association is a shining example of the value of intermediate credits. This association has lent £16,431 to its members, relending all repayments as fast as they have come in. It has not made a bad account, every borrower has kept his repayments up to date, and none has asked for relief, and they have been able to borrow at 5 per cent, against the 8 to 10 per cent which English farmers, without a similar system, have to pay on chattel loans. It is a pity that even more use is not made of these credits, for in the areas where full use has been made of them they have saved hundreds of farmers from disaster. The Morrinsville organisation is to be complimented on the fine example it has given to other districts.