Rural Credits

Northland Age, Volume 27, Issue 23, 26 August 1927, Page 6

Rural Credits

Farmer Needs Help, Sir J G Ward's Opinions

The State Bank Question

“I am right out to help rural credits,” declared Sir Joseph Ward (Invercargill), as a preliminary to the discussion of the difficulties of farmers’ finance, in the course of the financial’debate las't week. The State Advances Office, he pointed, out, had advanced 53 millions and done wonderfully good work, but We were not getting enough money in New Zealand to meet the requirements of its settlers. It could not be got from the banks unless they were'to reduce the amount available for the country’s commerce, so they must go outside the banks. “At one time I believed in the State Bank,” continued Sir Joseph “The mistake was made when this country did not take over the Bank of New Zealand when it was in trouble. You would then have had one bank owned by the country, but there should have been one requirement, that it be cut off completely from Government and Parliament. The directors should have been independent of the Government.” The member for Invercargill declared that he was positive that agricultural banks conducted on right lines would be advantageous. Answering ah interjector, he declined to commit himself to approval of the State guarantee until he knew the terms of the Government measure. Another important aspect of farmers’ finance was the valuation of land. There should be a permanent Valuation Board moving around the Dominion investigating mortgages. There were numerous second mortgages, and some went up to eight, and people were hnlding on to these second mortgages vainly hoping that the State would help them. The sooner they realised this would never be done the better. Mr A Hamilton : They get rid of them by selling up. Sir Joseph Ward: Farms are very difficult to sell, but these mortgagees think they are going to get out at the expense of the State.