RURAL CREDITS

Manawatu Standard, Volume XLVIII, Issue 238, 5 September 1928, Page 5

RURAL CREDITS

DISCUSSION BY FARMERS’ UNION

POSITION IN LEVIN DISTRICT. A report as to tho progress made in the Levin district towards the formation of a Rur.al Credits Association was made to the provincial executive of the Farmers’ Union on Saturday by Mr H. Denton, who gavo a verbal outline of the proceedings at the meeting of farmers held about a fortnight ago and which resulted in .a decision being made to form an association. He stated that, following the meeting, a number of farmers signified their willingness to come into tho movement. Mr J. H. Taylor had since obtained a number of signatures in tho district, and the speaker believed that the requisite number of 20 names to form tlie association was practically assured. The probability was that in the next week or two the association would be an accomplished fact. At Shannon it was found that there was no likelihood of forming an association, but he thought that several farmers from that district would go into the Levin association.

The president (Mr 0. P. Lynch) remarked that the security iasked by the Government from the farmer who wanted a loan was too much.

Mr A. MeLeavey stated that, if an intending borrower had the security required by the board, he could obtain accommodation elsewhere. Dir H. Kent: Only that you get it at 6 per cent in one case and from 7 to 9 per cent in the other. Mr Deriton said he thought that tho intending borrower would get a more sympathetic hearing from the board than from other lenders.

Mr H. Bowling said lie thought that a great many people wanted to borrow tho money, but did not like to' have their names gazetted. Tho chairman : What , does a little publication matter, so long as you get your money cheaper? Mr Jensen moved that a vote of thanks be accorded Mr Denton for the trouble ho had taken in organising the movement in tho Levin district. Tho mover said he thought that the scheme would work satisfatcorilv ,and that eventually it would he quite a sound proposition and the interest would be lower. At this stage tho union must encourage it. so as to get the system successfully launched. The motion was seconded by Mr Kent.

Mr H. MeLeavey said that, apart from the interest being cheaper than through other channels, it was to the farmer’s advantage to borrow through tho board, because investors would become more interested in the. farming community than when tlieir money was invested purely in commercial concerns. “If we attract their money, we will liavo their sympathy -and interest,” he pointed out. The chairman: I think you are quite right there. Mr H. Bond : We have been able to do nothing yet at Palmerston North. They must be too well off there. The chairman said that the best plan for tho northern part of the district would he for the Farmers’ Union to work together. The former body at Palmerston North was apparently indifferent as to whether an association was 1 formed or not. An opportunity of considerling the matter was afforded during tho Winter Show, hut only two men came to the meeting, which lapsed. Ho thought that if a meeting could have been held at that time, it would have started the ball rolling. With the assistance of the Dairy Farmers’ Union it might be possible in a littlo while to form ,an assocation in the northern district. Mr Denton said there had been a lot of misunderstanding of the scheme at the meeting at Levin. Many of those who attended it had been worrying about the 20 per cent guarantee. With an association, however, no guarantee was required. The chairman: The association itself is the guarantee; it stands as guarantor. It is only when you are applying for an individual loan that you have to get tho guarantee of 20 per cent from someone else.

Mr Benton went .on to say tliat he believed that the proposal came before the directors of the Levin Co-operative Dairy Co. The idea that the local committee had had in mind was that the system should bo worked by the Dairy Company, which might utilise its office and the services of its secretary, and which was possesed of knowledge relating to the farmers. Ho believed that this suggestion was not very favourably received by the Dairy Compiflly. The trouble seemed to him that only one-quarter per cent, .was allowed for working expenses; and if the association did not have the scrvico6 of an officer such as the secretary of the Dairy Company, it appeared that it would not bo able to carry on the business. For initial expenses the association was entitled to a loan of £25 for ten years free of interest. The chairman: I think the margin is not sufficient to work on in a small concern. It might be all right if there was a big turnover. In the northern part of tne district we have our union secretary and ho could perhaps act as secretary of tho association, but I don’t think he would get very fat on the emoluments he would receive from it. Tho motion was carried thanking Mr Denton and the Levin branch of tho union for their services.—Chronicle.