INTERMEDIATE CREDIT

Dominion, Volume 24, Issue 50, 22 November 1930, Page 15

INTERMEDIATE CREDIT

Thirty-eight Associations

FEW BORROWERS IN ARREARS

Further progress has been made in various parts of the Dominion with the formation of co-operative rural intermediate credit associations with the object of facilitating the submission by farmers of applications to the board for loans, according to statements at the monthly meeting of the Rural Intermediate Credit Board in Wellington this week by the Commissioner of Rural Intermediate Credit, Mr. J. W- Macdonald. Colonel J. J. Esson presided, and there were also present Messrs. J > .,J'4 V Mac “ donald, J, Brown, T. U. Corkhill, Norton Francis, J. N. Massey, M.P., and W. Waddel. :' „ , Since the previous meeting of the. board the Northern Hawke’s Bay Association, with headquarters at Hastings, had been registered and the statutory meetings ot the associations formed at Papakura and Pahiatua had been held. Definite progress had been made toward the formation of an association in the Otamatea district (North Auckland). The existing proposals to form associations at Mangonui (North Auckland) and in the Thames Valley, Central Hawke’s Bay, Marlborough and Banks Peninsula districts have also continued to receive attention, and it is anticipated that associations will shortly be formed there. The total number of associations formed up to the present is 38. The commissioner reported. that the annual meetings of the majority of the existing associations had been held recently. The accounts presented to the meetings indicated substantial increases in the business recorded by many associations, although -in some cases the farmers in the districts have not taken full advantage of the 'benefits of the system, General appreciation was expressed of the advantages conferred by the system, the consideration given oy the board to the recommendations . of directors of associations and the relations existing between the associations on the one hand and ’the board and its local officers on the other. The board received a report as to the cases in which borrowers, either direct from the board or through associations, were in arrears with their payments. Despite the adverse economic conditions prevailing and the fact that provision is made in the ease of every- loan for a substantial annual reduction of principal in addition to the payment of interest, there were comparatively few cases in which arrears of payment existed. This position was considered by the board to be extremely satisfactory. The board confirmed the action taken by a local committee in regard to loan applications and other matters dealt with since the previous meeting of the board. Although the period of the year during which farmers as a rule arrange for their financial requirements for the productive season is now past, applications continue to be received steadily, this indicating an increasing tendency on the part of farmers to avail themselves of the intermediate credit system. It is anticipated that a substantial volume of applications will continue to be received throughout the summer months. • It was reported to the board that sufficient funds were available to meet the requirements of applicants for some considerable time to come.