FARMERS’ LOANS

Hawera Star, Volume XLVIII, 30 October 1924, Page 5

FARMERS’ LOANS

MEASURE INTRODUCED. SUMMARY OF PROVISIONS

STATE ASSISTANCE,

[A modified form of the much discussed Agricultural Bank Bill conceived by Mr Poison, and which, during the past twelve months, has been hotly debated both-in Parliament and at meetings of branches of the-Farmers’ Union, .has been introduced by the Prime Minister, under the title of the F-arm Land Mortgage Association Bill. The Bill will no doubt have far-reaching effects, and the summary of its main provisions, as telegraphed by the Star’s Parliamentary ‘ reporter, will be read with interest by farmers generally.] (By Telegraph—Special to the Star.) WELLINGTON, Oct. 30. The Prime Minister introduced the Farm Land Mortgage Association Bill, which'will authorise the formation of farmers’ loan associations, having power to raise money by bonds and deposits, and by a limited amount of State loans for the purpose of lending to bona fide farmers on freehold land up to the value of 70 per cent. The assoeiat ; ons will follow in their organisations the lines of public companies, though no dividends will be payable until all liabilities to the Government are repaid. Any farmer desirous of obtaining an advance must become a member of the association, taking one share for every £IOO loaned to him. The maximum loan is £SOOO. The method of obtaining capital is officially explained as follows: The Government may advance to the association for its first year’s expenses a sum not exceeding £2OOO without interest, and for a. term not exceeding ten years. The Government may also lend to the association sums,, not exceeding £50,000, Avithout interest, for a term of not less than ten or more than twenty years. The Act contemplates several such associations, and it is provided that the total of loans to all associations under this heading shall not exceed £150,000. The association is required to keep one half of the Government loan in liquid securities to provide for redemption of bonds and deposits. y Further finance to enable an assoeiation to extend its lending operations is provided by power to issue bonds of not less than five years’ currency at a rate of interest not exceeding 54 per cent, and to accept deposits for periods of'not less than five years at a rate of interest not exceeding 5 per cent.