AGRICULTURAL BANKS.

Otago Witness, Issue 3672, 29 July 1924, Page 15

AGRICULTURAL BANKS.

WELLINGTON, July 24. “That we again emphatically impress upon the Government the necessity for legislation to enable farmers to form agricultural banks’’ was the motion moved by the president of the Farmers’ Union at the annual meeting to-dav. Mr Poison said it had been asked : What was the object of a bank when tnere was such a magnificent institution as the State Advances Department lending large sums to settlers? He yielded to no man in his admiration of the work of that department. He did not suggest that the department should not be gone on with, but it did not perform certain functions which an agricultural bank would automatically perform, and it did not get rid of many anomalies and imjxisitions which they suffered from under the ordinary banking system. Mr W. B. Matheson said the advance by the State of £IOO.OOO for the establishment of the system would bo a thoroughly sound investment. The Minister of Lands, in reply, stated that any remarks he might make would be his own opinions, and not those of the Government. He did not think there was any serious difference of opinion in Parliament to-day as to the virtues associated with agricultural banks. There were, however, differences of opinion as to how far the State should go in supporting the system. Reference had been made to £100,OCX). To his (Mr M’Leod’s) mind that was only a fleabite. He was quite sure if that amount would set up an agricultural bank it would be found in five minutes. As far as Parliament was concerned there was, however, the very large question how far should the State go m guaranteeing the bonds of such an institution, while the State itself was carrying a department not. altogether on the same lines, but was intended to meet much of the existing difficulty. If the day came when an irresponsible Government was in office the precedent set up in connection with agricultural banking would bo extended to fields, which he was sure farmers would set their faces against. He admitted the beneficial results of agricultural banking in other countries. Messrs Forbes, Field, »ykes, Masters, Bitcherier, and Macpherson, M.P.’s, promised to "ive support to a measure foi the establishment of an agricultural bank. The motion was carried.