"RURAL CREDITS

Evening Post, Volume CXXVIII, Issue 99, 24 October 1939, Page 10

"RURAL CREDITS

FUNDS AND BUSINESS

The joint managing directors of the Rural' Intermediate Credit Board (Messrs A. D. Park and T. N. Smallwood) report for the year ended June 30, 1939, that the Rural Intermediate Credit Act, 1927. under which the scheme was established, made provision for the granting of an advance of £400,000 from the Consolidated Fund, one-third of which was required to be specially invested by the board as a redemption fund. The balance of the loan was available for the general purposes of the board. The Act also provided that the redemption fund should be augmented by adding thereto the 'ncome produced by the investments of the fund and half the annual profits of the board. After taking into account these accretions the redemption und had accumulated a total sum of £229,031 12s as at June 30, 1939. Although the board had power to raise loan moneys by the issue of debentures, in recent years the balance of the Government grant has been' sufficient for lending requirements. The advance of £400,000 was free of interest for the first ten years and the board first became liable for payment of interest on the amount as from July 1, 1938. In the event of the ordinary revenue of the board being insufficient to meet the interest there is authority in the Act to appropriate an I amount equal to the deficiency from Ithe Redemption Fund Income Accoui i Notwithstanding the reduction in the j number of associations, advances made Iby associations to members amounted Ito £67,594, as-compared with £45,131 'for the previous year. The amount | owing by all associations to the board at the close of the period was £ 141,058. which compares favourably with last year's total of £124,113. There has been a further reduction in the business transacted in disj counting bills, the value of bills discounted during the year amounting to £584, compared with £856 for 1937-38. ■Bills on hand at the close of the year amounted to £337. 7 The board expresses its appreciation of the valuable services rendered by : members of district boards, directors, land secretaries of associations, and j its own officers "all of whom have contributed to the successful management of the business."