AIDING THE FARMER.

New Zealand Herald, Volume LXVIII, Issue 20840, 6 April 1931, Page 11

AIDING THE FARMER.

| LOANS FOR FERTILISER. THE GOVERNMENT'S SCHEME. GREATER ENTERPRISE URGED. Details of tho Prime Minister's plan for assisting farmers to fertilise their properties with the aid of the Rural Intermediate Credit Board have not been made known yet, and people interested in the development of the scheme are disinclined to comment until they know more. Several points stand out clearly, however, one of the most important being that unless the Government is prepared to go further and take greater risks than do those who are already helping the farmer, the scheme can hardly he of value to him. At the present timo the special difficulties of farmers are being widely recognised, and they are being assisted to a remarkable extent by mortgagees, stock and station agents, lending institutions, merchants and manufacturers. These are allowing as much credit as possible, and will continue to do so, but there are many farmers who cannot get credit, hecause of their almost hopeless position. Will the Government's scheme help these ?

When the question was put to Mr. M. Stewart, manager for Messrs. ■ Kempthorne, Prosser and Company's fertiliser department, he said he understood the position to bo that the Government was going to take no risk. It would provide a fund of money through the Piural Intermediate Credit Board, but loans from this would have to bo guaranteed by tho intermediary who arranged the farmer's business. In the event of failure the board would have recourse to the intermediary. The Prime Minister made it clear in his statement that "the funds would be advanced by tho board strictly in accordance with its usual principles of lending," and that no speculative or doubtful advances would be warranted. That did not appear to hold out much hope for those who were unable to get credit in other directions at the present time.

The Government has approached tho three Auckland manufacturers of phosphates, Messrs. Kempthorne, Prosser and Company, the Challenge Phosphate Company, and the New Zealand Farmers' Fertiliser Company, Limited, on the question of reducing prices in view of tho proposed credit facilities, but the matter has not yet sufficiently advanced for a definite decision to be made. "We are required to be assured that their proposal would increase the sale of fertilisers and result in greater business," said Mr. Stewart.