LOANS FOR FARMERS.

Hawera Star, Volume XLVI, 31 July 1926, Page 5

LOANS FOR FARMERS.

BANK OF NEW ZEALAND'S SCHEME ENDORSED.

BY CABLE— PEESS ASSOCIATION—COPYRIGHT. CAMBRIDGE, July 30. Mr. Mervyn Wells, chairman of the Cambridge Co-op. Dairy Company, at the annual meeting of that body today, expressed his .sincere pleasure that the Bank of New Zealand, was making an earnest effort- to ameliorate the quinquennial renewal difficulty which imposes expense and anxiety upon farmers who have mortgages to renew. The bank’s proposal was, briefly, to provide £5,625,000 for investment on farming lands under -table mortgage at 6 iper cent, interest and one -per cent, sinking fund, redeeming the loan in 33 years. The terms .seemed reasonable for New Zealand, as the New South Wales Savings Bank, which pays no taxation, charges 61 .per cent, through its rural la nets clop a rt.mont. Jt- was a duty laid upon the* big national institutions to assist the primary producers, and lie trusted that all the other banks, insurance companies, and other opulent- enterprises would fol-’ow the excellent lead. No- danger lay in this proposal to agricultural banks..

Air. Wells said that- many farmers stagger along without any definite plan for the reduction of their mortgage debt, and their ismialL savings were swallower! up in conversions l and renewals. The proposed scheme on the amortisation principle- would establish many men and give them fresh heart. Their compulsory activity and thrift would react to the advantage of the Dominion as a whb-le. The Bank of England always found it incumbent to provide cheap money for the industrial associations of Britain, and had: reduced the bank rate to- 4 per cent. Ho thought- it- wonderful and most happy that our bank bad the power and the broad-mindedness to endeavour to follow the Bank of Elngland and provide cheap money for the farmers.