CO-OPERATIVE BANKS

New Zealand Times, Volume XXXIII, Issue 7928, 11 October 1911, Page 1

CO-OPERATIVE BANKS

GOVERNMENT SCHEME DETAILS GIVEN BY SIR JOHN FINDLAY. SPECIAL TO THE 11 TIMES.” AUCKLAND, October 10. Tho proposal to establish co-operative banks in New Zealand on tho lines of tho successful Continental institutions was referred to in detail last night at Parnell by Sir John Findlay, lio said that if a number of men signified their intention to go on tho land and wanted tho money they would bo incorporated in a farmers' co-operativo bank, and would then have power to borrow from tho lending institutions or tho Government a sum to be fixed in proportion to their numbers and property. That sum would bo apportioned to them. They could lend it as they pleased, and it would be guaranteed by the Government. The bank would lend to any of its members without a penny of security. That was an alarming thing for the State to do, some people would say, but he would answer that it had been done in Germany, Belgium, and other countries, and had done an immense amount of good. A man who wanted .£SO to buy a horse, a cow, or a piece of farm machinery, could apply to the association and get it without bringing security, probably at ior per cent, interest. What security is there? It is the man's honesty, hie industry, and his character. Tho ideal of democracy is that a man of good character, able to male© use of money, should get it. (Applause.) “ Too good to be true/' interrupted ono of the audience.

Sir John Findlay: Well, wait, and you will soo it in operation next year. Ho went on to say that 930 of tho hanks wore lending a hundred millions sterling in Germany.

Another interrupter shouted, “ Pawnbroking,” to which the speaker's prompt retort was, “ I have heard that said before, but I am not afraid of a name.” Tho twenty men or so constituting tho bank were, ho continued, jointly and severally liable for the losses: and so, when a man cam© to borrow money from them they could say, “Well, you are not a sober, industrious man. Wo cannot lend you money, because you have not these qualities." Thus the effect of the farmers' c;;-operative bank scheme would be a moralising one. Tho farmer who could not get money unless he led a sober, industrious life, found it useful to lead that sort of life; thus the bank became an educative agent of powerful character. It was not intended to grant large sums through co-operative banks, because large loans could be obtained as at present from the A avarices to Settlers Department. The whole scheme was to enable a man with no money, but good character, to get money to assist him in Ms industry.