INTERMEDIATE CREDIT

Dominion, Volume 25, Issue 168, 12 April 1932, Page 10

INTERMEDIATE CREDIT

Power to Grant. Loans OPINION OF BOARD It was agreed at the monthly meeting of the Rural Intermediate Credit Board held recently at Wellington that the power to grant loans not exceeding specified amounts should be vested in the directors of associations subject to confirmation by committees of district boards consisting in each case of the District Intermediate Credit Supervisor and another member of the district board provided that the board’s usual requirements in regard to the margin of security and the other matters of which directors are already aware are strictly complied with. Previously it has been necessary to submit applications for loans of this nature to the district boards for the final decisions, the decisions of the directors being in the form of recommendations.. The board also; approved the extension of the powers of directors of associations, District Intermediate Credit Supervisors and local committees of district boards to grand re-advances of the proceeds of stock and produce sold and of principal repayments received. In some of the cases concerned it has, up to the present, been necessary to submit applications for readvances to the Rural Intermediate Credit Board or the Commissioner of Rural- Intermediate Credit though directors, district supervisors and local committees of district boards have had power to grant re-advances to a limited extent. It is the policy of the board to delegate matters of administration to the local organisations where experience lias shown that with the safeguards provided the position of debenture-holders will be kept secure. Naturally, in the case of an entirely new system, such as the rural intermediate credit system, the extension of delegated powers must be carried out conservatively if the confidence of investors Is to be maintained. As a result of the discussions which took place at the Hamilton conference the representatives of the associations concerned obtained a better understanding of the board’s requirements and of the work’of the system generally. It is recognised that the holding of such conferences should benefit not only the associations, but also the board and result in a better administration of the system.

In view of the excellent results achieved at the Hamilton conference the board decided to hold a further conference at Palmerston North in .Tune next, which will be presided over by Mr. Norton Francis and will incinde delegates from the associations operating in the Taranaki, Wanganui, Manawatu, Hawke’s Bay and Walrarapa districts.