STATE-GUARANTEED BANK

Hawera & Normanby Star, Volume XLI, Issue XLI, 15 October 1921, Page 4

STATE-GUARANTEED BANK

FINANCIAL ASSISTANCE FOR PttODtJCEUS.

r jNEEp FCfl| BMlpt PROVISION, j \""' Vf^ ' ; '•' ,-i "''■;', -:.'."**^TJ?v .•','•!' ■..■ ■' ] : $ A *Bcse|ae' fbif ihef\si&blishment of submitted to thePominion^^cutiiye of the Farmers' Union by MiK#. fi. Joll (Hawke's Bay), on behalf; of; the Hawke's Bay branch of the union.:. _ • In outlining ' ih& Mr Joll said that his union' shad' carefully considered the advisability of; establishing a State-guaranteed bak&, and had come I. to; the conclusion: that the time was j opportune, and that! the proposal ■ should be put into operation without I delay. There was a real need that betI ter provision should be made'available !to financially assist the primary and I secondary producers of the Dominion. !In order to provide a solid foundation j upon which to build up the banking • business, it would be necessary to es'.'tablish ihe commercial; value of the- | land of the Dominion, to be deter- ' mined by agreement between the own- ; ers and the Goverrimeht "Valuation Department, and to remain as assessed for periods of not less than five years. It was also considered that there could be no security of ownership if the comi mercial value of the sovereign # was a fluctuating quantity, it was ttierefore sound policy to maintain that the commercial value of land should be established otherwise. A further proposal was that the bank should at all times, when called upon, advanco to applicants on . production of their paper three-fourths of the commercial value |of this land. . The president (Mr "W. J. Poison) said I the scheme was more or less crude, and would require to be entirely re- | modelled before it could be seriously | considered. In referring to the alternative scheme, brought down by himself, for a producers' co-operative I bank, Mr Poison said that this providied a means of securing the finance ! that producers needed. There was ! therefore no need to launch any experiJ ment of their own. The projected pro-, ducers' co-operative bank was largely j based on the agrarian banks in Europe, j which were built up by the best brains lof the Old World during the last 200 | years. The system embodied banking I arrangements which were the admiration of the Old World, and with slight modifications could be made to suit the requirements of the New Zearland producers. I In reply, Mr Joll said that the object of his union was simply to afford the executive a basis to work upon. ; Further consideration of the proposals was deferred.