MONEY FOR FARMERS

Evening Post, Volume CX, Issue 41, 16 August 1930, Page 11

MONEY FOR FARMERS

EUKAL CREDIT SCHEME I

WILL FINANCE BE FOUND ? |

(By Telegraph.) ...._-.■ (Special to "The Evening Post.")

MASTERTON, This Day

Some interesting .references,,.t,o the Bural. Intermediate: Credit :schdm!e and to .the methods by which if isrpropoaed to finance it were made, at !iheiinee.ting of the Provincial: :Exe6utw Te; pf tha Farmers' Union'yesterday.-'. ;'- ..

Mr. J. Hi Bremner asked- '-whether Tarauaki criticism of the" rliur.il£..inter-mediate.-Credit administration » lpcal natter or «f genera.;."scope". Pahia.tua was keenly interested"in^tnis; qiics-

_ Mr. Alex Boss, who. is" chaifman" of the Wairarapa Bural' Interme'diateCredit Association/'-said he wjjs-licit" jjrfcpared to say at that, meeting.::..wba.t; t -,. ha thought of the criticism of other associations. The machinery. .of ■•.the: intermediate credit; scheme was .new,, iaud. could not move smoothly right-a\yay.' The Wairarapa Association ■ hail> found some serious defects which rib doubt would be righted in time; The system, was a good one on a bad foundation. It relied eventually on funds from the investing public. At present the original funds were almost exhausted. '■■'■ The bonds that were being offered'were not so attractive as Government cates, and he believed that.they would not get any money through their medium; the terms, were not I, attractive enough. The whole scheme 'was on a bad foundation simply because' the Government would not :take .the.oresiponsibility of finding the money. ; If .-..the Government found: the- moneyi-the schiem* would go swimmingly. -. • ... . . Mr. W. B. Martin:, '-'HwvVe'an..thai Government find the money?'! ' • ~

'Mr.'Koss said the Government; should get money for intermediate-credits at the same rate at which ordinary ernment loans were raised. ; At present the Government did not guarantee ;th« rural credit bonds, although- they were behind the scheme to the extent of £400,000. Probably the people in.Taranaki who had been criticising. the . administration of the: scheme were., wondering why they -were- not- able;t«! ; get' money for clients who seemed to' hay« a good claim. The same trouble.had been experienced by the Wairarapa Association. . ■ : ■;: '~ "NEARLY DEPLETED.'' : Mr. E. Pattison said thai;, apparently the central board was simply staving off as many demands as'possible. ■; It was evident that funds were nearly depleted. ' :■ "■ :. -•■. v : -v7 Mr. Bremner said th« illogipaV thing was that they were urging districts to form fresh associations. .-,.■■ Mr. Koss said-that the'intermediate credit bonds were not bearer .bonds, and were not saleable like loan.scrip..!. The Government. was not behind ;them except to the extent of 5.400i000._ Morally,- the Government. was behind-. th» rural credit bonds) but,.legally it-was The. secretary (Mt.\ James-:-"Watson) said that the interest rates on th&bond3 were 4^ per cent.-for.twelve-months and 5£ per cent, per annum.-for five ' Mr." H. Cotter said' 4hat" eve'% the Farmers' Union, in' investing reserve funds, lia,d preferred, to place, its .'funds with a building society rather-.than in rural credit bonds. ■■■■ -■ ■•■ '.-,; ■_ .■ -..-• Mr. Boss'said this vwas not quite a fair statement; .The . Farmers.' -Union, in making the ■ iavesftoent; mentioned, desired to keep its reserve:liquia.- : ; = A GOOD iNViBSTMENT; / The Dominion treasurer. :• (Mr, ■ Chadwick) had said thaf-as-a'.fi.ye-year. investment, rural.. • credit.■ bonds wer« quite good. ' ;-■•',.• ■'■■'..' ' Mr. Cotter said He understood. th» building society investment was not at call, and that, the part of the reserve invested in that way was not required to be liquid.. :■:' . '■,■'■ ■ . Mr. Boss rejoined .that the treasurer undoubtedly had said that ..rural credit bonds were a good, five-year investMr. J. L. Heeklei; said the Meat Producers' Board had! invested £ 13.500 i* rural credit bonds." ;..::'; .; ."".:■ .' At this, point,the discussionilapaed.