LONG TERM CREDIT.

Hawera Star, Volume XLVI, 20 May 1927, Page 5

LONG TERM CREDIT.

THE FARMERS’ NEED. ACTIVITIES OF THE STATE. (BY TELEGRAPH—PRESS ASSOCIATION.) WHANGAJREI, May 19. The Hon. J. A. Young (Minister of Health), in his address to-night, on the subject of State lending said that the farmers were experiencing real difficulty in securing financial aid from private sources of investment. Money was not only needed for the assistance of farmers and settlement generally, but for help in the housing oif our town folk. The State was looked to, and must assist in meeting the situation. Happy and contented people and good housing were more allied to a healthy population than many realised. The Minister explained the operations of the State Advances Office in relation to advances to settlers, and the new legislation of last year providing for long term rural credits. He said that £140,000 had already been approved by the board under the new scheme, but many were not yet ready to receive the money. In any case, the first .issue of .bonds would not go out for sale until £250,000 worth was ready. He urged that the public should buy bonds, which would be issued at .something over 5 per oent.—probably 5J per cent. They would have a currency of from 30 to 36 years. The interest rate to the farmers would probably be 6 per cent., but should not be more. He thought it would be worth while the State instituting a similar scheme on the same principle to meet the pressing need for homes for the people. What the farmer urgently needed in regard to finance was long credit, for it was not the rate of interest so much as the short period of credit that worried and killed, particularly with regard to repayment of mortgages. These difficulties must be met in a spirit of -will to surmount them, and that could only be done by approaching the sufferings of the body politic with an examining eye and band, so as t» remove as far as possible the causes of the trouble and apply those remedies which time and experience had indicated the best.