LOANS TO FARMERS

Evening Post, Volume CV, Issue 140, 15 June 1928, Page 11

LOANS TO FARMERS

PARLIAMENT'S INTENTIONS BANKING OPINION Mr. T. Shaller Wcston, in moving a vote of thanks to tho directors at the annual meeting of shareholders of the Bank of New Zealand to-day, congratulated tho chairman upon his extremely able and comprehensive address. There wore two points upon which ho would venture to say a tew wjrds. The exemption from income tax of interest derived from mortgages to farmers was a matter that had been carefully considered by the last Taxation Commission, and it had unanimously decided that it was inadvisable to recommend tiny palliative of that kind. In 1920 exemption was made with regard to money invested in debentures of local bodies. That was done to meet the emergene,)' of that special period, luit it gave rise to anomalies and difficulties, and the provision had since been repealed. Personally he thought—ami he was sure the members of the Taxation Commission were of the same opinion—that the difficulty now faced by farmers in getting accommodation was only temporary, and was fast passing away. Therefore, it would be inadvisable to make amendments in the general principles of taxation in order to deal with what,was, after all, only a temporary difficulty. With regard to intermediate rural credit it had been pointed out that the Act was intended to serve the man who had not what was ordinarily looked upnn as very good security. He thought llio committee, of the Lower House which dealt with the Bill last year had tlmt in mind when it added a clause enabling the applicant for an advance to fortify his security by the guarantee of a personal friend or a business man who had confidence in him. That clause, inserted in the Lower House last year, had been criticised by one of the strongest supporters of the intermediate rural credit scheme—a farmer. But ho (Mr. Weston) ventured to think that the committee of the House did a wise thing when it inserted the clause. The directors of the bank had had 'a hard time during the past two or three years, said Mr. Weston, and the shareholders were indebted to them for the manner in wihch they had faced the situation. It was pleasing to see that the bank's chairman in London was Mr. Michie, who had played an important part in tho affairs -of tho bank when he was in Now Zealand. It was indeed pleasing that, among tho big men on-tho London board of tho bank, a New Zenlander should bo chairman. (Hoar, hear.) Ho would like also, ho sakl, to bear testimony to tho courtesy and kindness invariably shown to all \'isitors to London from New Zealand by the manager, Mr. Robert Mill. With regard to tho general manager (Mr. Bucldeton), Mr. Weston said ho could but repeat what he had often said, that it was generally recognised that ho had the interests of the bank solely at heart. "In fact I don't know that Mr. Buckleton has any occupation in life apart from considering tho interests of tho bank and its shareholders," said Mr. Weston. Ho thought that not only the shareholders but tho people of New Zealand were much indebted to Mr. Buckleton for tho bravo and broadminded manner in which ho met tho difficulties of some six or seven years ago. Mr. Weston also directed attention to the importance of the branch managers of the bank, and urged that their interests, should not be overlooked. Sir George Elliot, in returning thanks on behalf of directors, assured the shareholders that the managers of the various branches wore not forgotten. "So far as their salaries are concerned," he said, "I think they are well taken care of." He agreed with Mr. Weston-'s remarks on rural credit.