BUYING FERTILISERS.

New Zealand Herald, Volume LXVIII, Issue 20870, 12 May 1931, Page 10

BUYING FERTILISERS.

ADVANCES TO FARMERS. EASIER TERMS ARRANGED. ASSISTANCE BY GOVERNMENT. [by telegraph.—own correspondent.] WELLINGTON. Monday. Tlio Prime Minister, Rt. Hon. G. \V. Forbes, announces that a further important decision has been arrived at by the Government with the object of facilitating (lie purchase of fertilisers by the farmers during the current season. In view of the marked decline in the use of fertilisers, owing to existing financial stringency and I lie serious effect which this will have upon the next season's production the Government has given close attention lo the problem. Some time ago the Government made available £IOO,OOO for investment in the bonds of the Rural Intermediate Credit Board with tho object of stimulating the use of fertilisers, but the condition was then imposed that the moneys should be advanced through the board's usual channels and under the usual principles of lending. As the board has felt compelled in its general lending operations to adopt a conservative policy in vic.v of its duty to those persons who have invested in its bonds, the result has been that large classes of farmers who are urgently in need of fertiliser and whose position is reasonably soumj have been unable to avail themselves of the facilities offered owing to tho fact that they are unable to offer security in a form which complies with tho board's normal requirements. Provisions to bo Relaxed.

"lii view of (lie urgency <>f (tie problem," said Mr. Forbes, "and its importance to the country as a whole, hecause of the urgent need of maintaining production, the Government has now decided to authorise the hoard to relax its usual requirements in respect of a special fund of ,11100,000 now made available and to mako the obtaining of money by farmers somewhat easier. .At the same time it has been felt that in view of the heavy calls made upon taxpayers at the present moment the Government should not be asked to make moneys available indiscriminately, but only in those cases where (hero is a reasonable prospect of the amount being recouped out of next season's production. "The new arrangement made at the last meeting of the board involves the investment by the Government of £IOO,OOO in the board's debentures, but the Government will expressly authorise the board to relax its usual provisions in respect of this amount and will undertake to recoup the board from the Consolidated Fund for any losses incurred. At the same time the Government will rely on the board to keep in mind the interests of the general taxpayer, who will be called upon to meet any deficiency incurred. Security for Loans.

"Tt is intended that in making the amount available to farmers the co-opera-tion of dairy companies, stock and station agents and oilier institutions concerned with the needs of farmers shall be invited. As a general rule no advance will be made unless the applicant is recommended as suitable by the dairy company which he supplies, or a stock and station agent or other financial institution with which he does business. The limit to be advanced .in any one case will be £75 and the arrangement will relate only to fertiliser purchased after the date of this announcement. "It is considered only reasonable that those companies and institutions which are interested in an applicant's business should be prepared to co-operate with the Government in supporting an applicant's credit to a limited extent and accordingly each loiin granted will require to be guaranteed or the promissory note given by the borrower endorsed to the extent of 50 per cent, by a dairy company, stock and station agent, or other guarantor or endorser whose position is in the opinion of the board reasonably sound. " In those cases where an applicant is unable to produce a satisfactory guarantee or endorsement the board will, as a general rule, require the loan to be liquidated by a satisfactory charge on the proceeds, whether butter-fat. wool, stock, grain or other form of produce, for the next productive season."