RURAL CREDIT BOARD

Dominion, Volume 21, Issue 190, 14 May 1928, Page 10

RURAL CREDIT BOARD

BUSINESS AT LAST WEEK’S MEETING A further meeting of the Rural Intermediate Credit Board was held at 'Wellington on Friday. All of the members of the board were present, except Mr. T. E. Corkill, who is at present absent in England. It was brought to the notice of the board that there were a considerable number of farmers throughout the Dominion who desired loans of small individual amounts for the purchase, of fertilisers for increasing the productivity of their properties and similar purposes. The board had previously decided that it would not put into operation the provisions of the legislation which enabled it to carry on the business of discounting farmers’ promissory notes and bills of exchange until it was in a position to judge whether the needs of borrowers under the two main methods of lending, i.e., to intermediate credit associations or on loans direct to borrowers guaranteed by sound companies or substantial private individuals, were fully provided for. As it appeared that satisfactory provision could be made for the requirements of these classes of borrowers, the board decided that the discounting business would be utilised.so as to provide individual farmers with finance, to an extent not greater than £lOO for each individual farmer, upon the security of promissory notes given by the farmer to the dairy company or stock and station firm or similar company with which be is dealing, and endorsed by that company to the board. It will of course be necessary for companies effecting discounts with the board in this manner to satisfy it as to their financial position. Approval was given to the registration of associations which have been formed at Hamilton and Te Awamutu. It was also reported that associations had been formed at Feilding. Mauriceville, and Marton, and that matters are well advanced in regard to the formation of other associations at IVaiuku and in the North Taranaki district. . The application of a. co-operative dairy company for registration as a co-opera-tive society under part IV of. the Rural Intermediate Credit Act. 1927, was considered and approved. This is the part of the Act which authorises the board to grant advances to bona-fide co-operative companies dealing in agricultural or pastoral products, upon the security of such produce. . Careful attention was given to the simplification of the procedure in making applications to the hoard for loans, so that applications for loans and other transactions with the board. may be dealt with in the most expeditious manner possible. A committee of the board, comprising the members resident at Wellington, has been authorised to deal with loan applications and other phases of the board’s business, ■ which, in the interests of its clients, require prompt attention. Other powers have already been conferred on the district supervisors and the district boards which will greatly assist. in achieving the desired object.