RURAL FINANCE

Dominion, Volume 26, Issue 68, 13 December 1932, Page 14

RURAL FINANCE

Meeting of Credit Board supplementary loans It was reported at the monthly meeting of the Rural Intermediate Credit Board that the power recently delegated to co-operative rural intermediate associations to grant further advances in certain cases without reference to the board was being exercised in a careful manner, and that the directors and secretaries of the associations fully realised their responsibilities in the matter. The board considered that from present indications it would appear that it was justified in granting this delegation of powers. The meeting was presided over by the Commissioner of Rural Intermediate Credit, Mr. J. W. Macdonald, in the absence of the chairman, Colonel Esson. The other members present were Messrs. John Brown, Norton Francis, J. N. Massey and W. Waddel. Apologies for absence were received from Colonel J. J. Esson and Mr. T. E. CorkilL The board recorded its regret at the death of Mr. S. J. Smith, who had acted as District Intermediate Credit Supervisor, Masterton. and chairman of the Wairarapa District Board since the inception of the scheme. Further co-operative rural intermediate credit associations were reported to have held their annual general meetings and the position disclosed was generally satisfactory. The business transacted by some of the associations during the year had been small, but this position was to some extent anticipated owing to the reluctance of many farmers to incur additional expenditure in the present uncertain conditions. Cases had occurred where sheepfarmers and grain-growers and those engaged in mixed and agricultural farming had applied for loans, but it had been found that though the securities offered would enable the board to ■■• rant amounts sufficient to repay exiting liabilities they would not permit of additional credit being provided to meet current expenses until the next -mason’s returns were received.. To meet ■ lie position the board had decided that ■ a appropriate cases supplementary adduces may be granted increasing the onus temporarily beyond the boards i-mal margins on the understanding hat the additional amounts would be ■opaid from the next season’s reurns from the farm when they were .ec°ived. The board’s branch officers md the officers of co-operative rural intermediate credit associations were being advised of the detailed conditions which would govern the granting of -ueh loans. It was anticipated that this extension of the board’s usual policy would lead to an expansion In the business of associations in the South Island, where, up to the present, the progress had no*been so marked as in the North Island.