HELP FOR FARMERS

Hawera Star, Volume XLVII, 7 January 1928, Page 7

HELP FOR FARMERS

rural credits system EXPANDED. HOBART, Dec. 20. Among the Government’s schemes for helping men on the land is the provision of more and cheaper money. For 20 years it has been possible for farmers to obtain advances from the State agricultural bank. The maximum sum allowed to any borrower has been £looo. Under the new scheme the limit is £2OOO, on two-thirds of the total valuation, instead of on only GO per cent, of it. The practice of deducting the first half year’s interest when the advance is made is to be abandoned. Ministers have informed Parliament that such deductions are disadvantageous to borrowers and are not customary when loans are made. The State bank is to be authorised to make advances for not more than "0 years. Borrowers are to pay interest onlv during the first five years, and then begin to repay the principal sum: Payments of principal and interest are to be averaged for the whole period of a loan, so that a borrower, will pay the same amount each halfvea r.

Another kind of financial provision is for registration of securities on live stock, wool and crops. This is designed to enable farmers to hold their products until marketing conditions are favourable, and to obtain money in the meantime for carryingon purposes.