RURAL CREDITS

Bay of Plenty Times, Volume LVIII, Issue 10359, 23 April 1930, Page 3

RURAL CREDITS

? Question of Farm Values. THE STATE ADVANCES. At the annual meeting of the Morrinsville branch of the New Zealand Farmers’ Union Rural Credit scheme arising out of the president’s suggestion that the branch should set out to accomplish some definite object during the coming year, Mr Seifert made a suggestion that the branch should consider how rural intermediate credit associations could co-operate with the State Advances Office in offering expert advice on land offered as security for a State Advances loan. As chairman of the Morrinsville Rural "intermediate Credit Association, he asked for the assistance of the Farmers’ Union in working out the idea he had in mind. By setting up credit associations consisting of experienced farmers the Government had, in effect, said farmers were capable of managing the lending out of money to other farmers. The Rural Credits scheme was a long way ahead of the Advances to Settlers scheme, which was centralised in Wellington and depended on the advice of valuers. He maintained that these valuers did not have such good information as practical farmers who formed the officials of the Rural Credits Associations. He thought the State Advances Department should seek the advice of the Credit Association in a district before making advances. Both institutions worked together to the extent that many farmers had advances from both. There had been millions of pounds of money advanced on farm property without th£ advice of farmers being sought. He thought the whole business of lending money to farmers should be placed in the hands of farmers, at least their advice should be sought. When a farmer in a district applied for a loan the State Advances Department should ask the advice of the Credit Association in the district. In this way the power of making advances would gradually come into the hands of farmers, which was a desirable end. It was a big subject, and he suggested it should.be discussed by the branch at its next meeting. He did not want the branch to send on any remits to the provincial conference until it had gone into the matter fully.