Financing the Farmer

Northland Age, Volume 1, Issue 10, 11 December 1931, Page 2

Financing the Farmer

The annual report of the Rural Intermediate Credit Board shows that about a quarter of a million more has been advanced to farmers this year than last —£840,000, against £590,200 in 1930. “The Board’s policy is firmly established and is operating successfully,” says the report. A Difficult Year “The year has been a difficult one, owing to the reduced prices received for primary produce and the unfavourable season,” says the report. “It is all the more gratifying to record that the great majority of the board’s borrowers have met their committments in full.” The attitude of the board had been that adequate security for its loans should be insisted upon, and the applicants should demonstrate to the satisfaction of the board that under reasonably favourable circumstances they would be able to make a success of farming and to meet their outgoings. It was evident that no good purpose would be served by granting a loan to a farmer whose finances were involved. A primary object of the board, that a farmer should be supplied with progressive amounts of credit as his position improved, had been largely attained. “Farmers who have obtained loans from the board and who desire further advances for productive purposes, will have no difficulty in obtaining the requisite finance, provided their relations with the board have been satisfactory, their finances sound, and the securities acceptable to the board.” Concessions to Borrowers The board considered that preference should be given to applications for credit in which substantial amounts would be applied to productive purposes. “It has been found necessary to grant concessions to some borrowers during the year in respect of their principal repayments, and in a number of cases to postpone the payment of interest. Each case in which postponement was applied for was carefully reviewed, and if the mortgagee or lessor of the land was willing to co-operate and a concession was justified in the interests of the farmer and for the preservation of the security, the board granted such relief as was warranted by the particular circumstances. The board has in suitable cases entered into arrangements with the borrower and his other or encumbrances for the financing of the farm until the next ensuing season, and the equitable distribution of the farming proceeds among the various encumbrances. “It is pleasing to record that the number of cases where concessions have been required was comparatively small, and that the great majority of the board’s borrowers have met their committments in full.” Fertiliser Loans The policy of the board was eased a little in the matter of loans for fertilisers. The sum of £IOO,OOO made available by the Government, was entrusted to the board, with instructions that it was to be lent under somewhat easier conditions, and that any losses incurred should be borne by the Consolidated Fund. Loans not exceeding £75 were being made to individuals provided that a guarantee of 50 percent of that amount, satisfactory to the board, was obtained. Where such a guarantee was not possible, the board was prepared to make the advance provided satisfactory charge was given over the milk cheque or other proceeds.

Noted by the Auckland “Herald” in a recent issue that there is “a definite revival of pipe smoking” in the Queen city. So there is. Tobacconists tell the same tale. And the increased popularity of the pipe is not confined to Auckland. It extends all over the Dominion. Well, there’s nothing like a pipe for solid comfort, and Doctors say it is the least injurious form of smoking. It sure is provided the baccy is O.K. Unfortunately it generally isn’t. Can the habitual use of tobacco containing a big percentage of nicotine (a deadly poison) be good for the health ? And, remember, most of the imported tobaccos contain a big percentage of nicotine. The only tobacco which doesn’t is our own New Zealand leaf. That is toasted, and the toasting does the trick! —cuts out the nicotine in one act! No “bite” in toasted. It’s safe. Delicious flavour and aroma too. There are just four brands : Riverhead Gold, Cavendish, Navy Cut No. 3 and Cut Plug No. 10. Of course there are imitations. Every good thing is imitated. Beware! 220