ASSISTING FARMERS.

New Zealand Herald, Volume LXV, Issue 19838, 7 January 1928, Page 10

ASSISTING FARMERS.

LOANS FOR SHORT T^RMS, MONEY FOR' DEVELOPMENTS. [BY TELEGRAPH.—OWN . CORRESPONDENT.] DARGAVILLE, Friday. The legislation passed last session providing for financial assistance to farmers was reviewed by the Prime Minister, Mr. Coates, in a speech to settlers at Ruawai. Mr. Coates said they had the long-term 36£ years State advances, and it had been the aim of the Government to assist the farmer with intermediate credit. An association of 20 farmers could be registered with power to raise up to £IOOO each. The farmers would be handed the cash, and a supervisor of the Intermediate Credit Board and a local committee of farmers would supervise the spending of the money. In the Intermediate Credit Act there was also provision whereby farmers could, through co-operative societies, such as dairy companies or an association of farmers which would guarantee 20 per cent., obtain a loan of £SOO, the Intermediate Credit Loan Board finding the other 80 per cent. By this scheme- a farmer could purchase fertilisers and carry out fencing and draining. He could guarantee his sons or his workmen for the necessary 20 per cent., so that they could start on the land.

All the machinery was in the Intermediate Credit Act for a farmer to subdivide his property and place his sons or his workmen on it. Loans would cost from 6 per cent, to 6£ par cent. The Act would come into operation early in the year.