AGRICULTURAL BANK.

Hawera Star, Volume XLVII, 18 May 1928, Page 5

AGRICULTURAL BANK.

AND INTEREST RATES

VIEWS. OF FARMERS

That a strong effort should be made to establish an agricultural bank which it was considered would have a powerful influence in effecting reduction ol interest rates was the. opinion of the iarmers present at the annual conference of the South Taranaki Executive of the Farmers’ Union yesterday. The subject was introduced by Mr A. J. Haseltine when he was given leave to propose an extra remit: “That this meeting urge in the Government the need for the establishment of an agricultural bank.” In moving this Mr Haseltine said that a commission had - toured the world and issued a comprehensive report, the only result was the establishment of Rural Credits scheme. He was convinced that if the union increased its membership they would get their desires

. Mr Cocker seconded, sayiiig this should get the support of the Dominion Executive. They wanted rates of interest reduced and this would help materially. “That the Farmers’ Union support the efforts now being made to bring about a reduction of rate of interest charged by the Associated Banks on overdraft accounts.” iMr D. M. Cameron formally moved this remit and Mr Aroa seconded, the latter said that all should know what was paid to banks in interest while no allowance was given for a credit balance, and he added that there should be a lower rate charged. Mr Parker agreed with these remarks.

Mr Hodge said the remit had always received a sympathetic hearing and carried every year.

Mr J. P. Marx said that high rates were charged and all needed relief in town or country. All the commercial concerns should agitate for such a reduction. Mr Haseltine said it was a good argument for an agricultural bank and the only thing that would bring the reduction was the competition that weald come about from such an institution. Mr'Hodge approved. He said that ul. they got from the Agricultural Hank scheme advocated by Mr Polpon, was the Rural Credits, a. side issue to t lie bank. iMir Poison was sot on getting Lhe brink formed and if he had the members behind him, he - would succeed . Mr Cooker said the. agricultural bank would undoubtedly bring down rates of interest. A low bankrate meant a similar reduction in mortgage rates. He referred to the. fact that chattel advances were available under the Rural Credits scheme at 6} per cent, a thing never heard of before. Both remits were carried without dissent.