FINANCE FOR FARMERS.

New Zealand Herald, Volume LX, Issue 18324, 14 February 1923, Page 11

FINANCE FOR FARMERS.

THE ( RURAL CREDITS ACT. EFFECT UPON SECURITIES. new; BANK BILL PROPOSED. Matters relating to farmers' finance were discussed last evening by' the provincial executive of the Farmers' Union. The chairman, Mr. R. D. Duxfield, moved that the Government be urged to raise money for the Advances'to" Settlers Department to the full limit, provided by the Act to lend to farmers. Ho said the Rural Credits Association Act passed last session was seriously affecting land securities. Financiers were being advised not to advance money on farms, as the Act provided that in the event of a farmer becoming a member of a Rural Credits Association such association would have first claim on the farmer's assets. He felt that some action should be taken in the matter. In view of the pending extinction of the moratorium a very serious position would arise. The Act of last session was a foolish one and would never be used to establish a bank. The Government should step in and provide some relief. The speaker also referred to what he lormod the " indiscreet " remarks of Sir Harold Beauchamp regarding land values. It was no use urging fanners to increase production unless money was made available for them to do so. If private financial institutions were withholding their money the Government was the only resource. Mr. F. Colbeck said that in view of the fact that the registered mortcoges of the country represented £229.000,000 the amount that could be made available through the advances to Settlers Department would be of very little use, particularly as the department win; limiting advances to £500. The. establishment of a real agricultural bank such as was.proposed in Mr. W. J. Poison's Agricultural Banking Bill was the only way to meet the situation. All the propaganda regarding the low values of land was meant to frighten the farmers out of helping themselves through their own bank. The executive should put all its energies into advocating the adoption of the proposed Bill. The Rural Credits Act was a scandal. '"."•-.. The chairman explained that his motion was to provide some immediate relief to farmers who were finding difficulty in financing. He agreed that every j effort should be made to have Mr. Poison's Bill adopted. The motion was carried. It was also decided, on the motion of Mr. Colbeck, to urge the Government to delete clause 6 of .he Rural Cronus Association Act providing for priority of claim, as it was most injurious to the farmers* credit. *

REGENT ACT CONDEMNED. dominion pr** Dnri's viewtßX TSXEGBAPH. — ASSOCIATION.] WANGANDI. Tuesday. Mr. W. J. Poison, Dominion president of the New Zealand . Farmers Union, questioned regarding 1 Mr. T. M. Wilford'a Agricultural Banking Bill, said he was glad to see the Liberal Party realised ,the importance of the subject, and hoped to have their sympathetic support when the union promoted its. Bill. Mr. Poison said something must be dofce at once about the extraordinary measure passed by the Government last session. If an enemy of primary production anxious to dsil a blow at the , farmer had prepared it he could not have made a more complete job of it. He i condemned especially clause 6 of the i Rural Credits Act, which imposes on » members of , the Rural Credits Association joint and several liability for the full amount of the association's debts. The result created grave risks for anyone j lending money to any producer. He had I consulted the solicitors of the Farmers' ; Union on the point, who advised that if ! the effect of this legislation were. known ; to lending institutions throughout the Dominion there would be an immediate demand for adequate reaction against it in connection with future loans. It was to be hoped that the Government would put the matter right at once, as it was very serious for producers.