RURAL CREDIT SYSTEM NOT FINDING FAVOUR

Manawatu Times, Volume XLIX, Issue 3491, 29 October 1926, Page 8

RURAL CREDIT SYSTEM NOT FINDING FAVOUR

Wanted Commission’s Full Recommendations PRESSURE OX GOVERNMENT TO BE CONTINUED The provision of tihe Rural •Credits Act passed last session arc not wholly satisfactory to the farming community, and after some discussion at Wednesday’s meeting of the executive of tjhe New Zealand Farmers’ Union it was decided to continue to press for full effect to he given to file recommendations of the Agricultural Hanking Oommission. WEDDINGTON, Oct. 28. Mr. Ij. H. M’Alplne, organiser for the union, pointed out at yesterday's meeting of the Dominion Executive of the Farmers’ Union, that all his work in the. outlying districts had been accomplished on the strength of the strong stand the union had taken m demanding facilities to enable farmers to secure cheaper finance, and if the union did 'not continue to press for all it had asked for many of them would be lost. He urged that the union should make it clear that the farmers were solidly in support of their demands, and that they would ije satisfied with nothing less than the full terms of the Commission’s report. “We should continue the pressure,” remarked Captain Colbeck, “until the Government gives effect to the wishes of its members. We should concentrate on this matter until next session.” (Hear, hear.) Mr. R. D. Duxfieid thought it would be unwise to press the matter any further than it had been taken. Review by Mr. Poison. The president (Mr. W. J. Poison), a member of the Commission, said he thought he could see his way to discuss one or two general questions without divulging anything that came officially before the Commission. It was a matter of general knowledge that there were not many agricultural banks in the world which were known as such. There was really only one genuine co-operative bank thai was a bank of issue, and that was in Denmark. It was a genuine agricultural bank, and so anxious was it to run its business on bank lines that it appointed two bankers as general managers, and gave them extraordinary powers. The Commission had found that that bank had got into difficulties through becoming interested in shipping enterprises. The Commission had been unanimous in its decision not to recommend anything of the same nature. Apart from that the Commission’s report was precisely what the Farmers’ Union was asking for. In fact, it went further. The Commission had provided not only for long-term credit, but also for Intermediate and short-term credit 1 . Further, it had actually provided for credit being given to bacon factories, I dairy factories freezing factories —in in fact, any sort of genuine co-opera-tive enterprise in the country, whether connected with farming or anything else. The Commission went as far in every direction as had been gone anywhere in the world, welding together the various principles of the systems it had observed in many countries. The Central Idea.

Mr. Poison said he did not wish to appear to be criticising: anything- that the Government had done already. The Government did not have time hist session to put into effect the whole of the recommendations of the Commission. It could not have been oxpecled, in the circumstances, without tlie fullest discussion and deliberation, both in Cabinet and with its officers, to carry out the full scheme recommended. The Government had simply taken the central idea of the report, and had handed it over to the Advances to Settlors Department to have it tested. There could be no objection to that except the theoretical one that the Department was already so fully occupied with its own side of the business that naturally it must he I■> some extent opposed to taking on extra work. He did not want to charge the Department with being unsympathetic, but he was inclined to think it would not be very sympathetic to the new work. He had no proof of lack of sympathy. If the Government had seen fit to create a department controlled by a board with sufficient farming representation, he was satisfied that the idea would have been, advanced strongly as soon as it was possible to put it into opoartion. ‘T am satisfied/’ said Mr. Poison, “that if the thing was handed over to an elected board on the lines the Commission suggested, it would be quite satisfactory. I hope the Government next session, if it brings down further legislation, will agree to the creation of a board. Such boards have been successful wherever they have been tried. There have been no failures of long-term credit along the Imts the Commission recommended. The idea is perfectly sound.” He added that if advances were made beyond fifi per cent. Of the valuation the scheme would not bo considered sound. . . 3 After sonic discussion it was dccided on Ihe motion of Captain Colbeck, seconded by Mr. C. C. Munro, “that this executive continues to agitate for legislation embodying the provisions of the report of the Agricultural Banking Commission, and that provincial committees ho set up lo carry on the movement.”