A FARMERS' BANK

Evening Post, Volume CVII, Issue 131, 4 June 1924, Page 4

A FARMERS' BANK

t a 'arge section of the farmers of New Zealand is convinced or has been persuaded into believing that the way of financial salvation for themselves is through the establishment of an agricultural bank. There is much to be said for the proposal. Indeed, it was officially rpcognised by the Chairman of the Bank of New Zealand (Sir George Elliot), when he stated at the annual meeting of the Bank, two years ago, that "so long as farmers are prepared to shoulder the full responsibility, there is not the slightest reason why they should not try. the experiment." Mr. Massey, speaking at Dunedin, seems to take much the same view. He is reported to have said that farmers could have their bank, meaning, presumably, that .. he vould facilitate the passage of legislation to that end; but, he added, he was expected to lend £100,----000 free of interest, taxation, and stamp duty. Naturally enough he asked: On what security? That was a plain business question, and must be met with a plain business answer. The farmers must put up the security. Moreover, <that security must be ample and sound beyond question. Can they do it ?It is very difficult for others than farmers to say, because it is said by some of them that they have already invested largely in free-of-interest Government loans (not a poor man's investment) and by others that they are so poor that their poverty is proved by the fact that only 4000 farmers out of 85,000 were able to render. themselves liable for income tax. The issue is perfectly simple: the bank can be had, the money required can also be had on the condition that adequate and acceptable security is offered. The matter now rests solely with the farmer.