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STATE LENDING

UNIFIED CONTROL

FINANCING THE FARMER

■The unified control of the State lending departments is suggested By the committee, which recommends the setting up of a Government mortgage board, which would tako over the long and short-term loans which arc administered by the Lands Department, tho State Advances Department, and the Uural Intermediate Credit Board.

"The total investments Df the Lands Department and the State Advances Office and the Eural Intermediate Credit Board-amount to about £68,000,000; in addition; there are other Government lending institution's," states the report. "This is a huge sum, and, in view of the great responsibility of the State and tho importance of influencing the flow of credit in those directions where it is most required, action is urgently needed to unify and •co-ordinate the activities of all the lending departments, to spread tho risk evenly and equitably in the interests of all concerned. The organisation contemplated is desirable in the interests of efficiency and economy. In addition, the close touch maintained with borrowers by the field staff would give the board suffieiont knowledge of its mortgagors to enable it to assist farmers through adifficult period like tho present in a much more satisfactory manner than now. obtains.. As it is, the State Advances Board is at a disadvantage in deciding which mortgagors deservo assistance and which do not. Often good men aro unduly penalised and perhaps inefficient farmers receive consideration that is not warranted.

"It is recognised that cases must be dealt with on their merits, and many farmers have had their interest charges temporarily reduced owing to their inability to pay more with the prices of farm produce at the present level; but the situation of the dairy farmer in particular calls for action ou a more comprehensive basis. Accordingly, it is considered that the proposed board, when established, should review its farm securities and, in collaboration with the Government, investigate how far it is possible' to go in the direction of adjusting mortgage charges when prices of farm produce are low and making up tho leeway when prices improve, at the same time assuring to the mortgagee an even flow of income. With the consolidation and adjustment of mortgages under this board, it should bo possible to finance with mo/cgage bonds, tho loans to be of the longterm amortised type with interest adjusted to current rates at, say, fiveyearly intervals."

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/EP19340914.2.100.6

Bibliographic details

Evening Post, Volume CXVIII, Issue 65, 14 September 1934, Page 10

Word Count
397

STATE LENDING Evening Post, Volume CXVIII, Issue 65, 14 September 1934, Page 10

STATE LENDING Evening Post, Volume CXVIII, Issue 65, 14 September 1934, Page 10

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