LONG-DATED LOANS.

Otago Witness, Issue 3773, 6 July 1926, Page 16

LONG-DATED LOANS.

ADVANTAGE TO FARMERS. MASTERTON, June 28. “The Bank of New Zealand’s proposal to money on long term repayable mortgages is a fine compliment to Mr W. J. Poison’s work in getting more reasonable finance for farmers,” said W. B. Matheson, acting Dominion president of the New Zealand Farmers’ Union to-day, when asked for an expression of opinion on behalf of his organisation concerning the bank’s proposal. “In the early stages of Mr Poison’s campaign for a Co-operative Agricultural Bank,” continued Mr Matheson, “tlie proprietary banks were naturally annoyed, and clearly inferred that the farmers were being treated as well as was good for them, and that better terms would only tend i make them plunge into a worse financial position. When the Government set up a Commission of Inquiry the first indication of the financial experts’ weakening in their assurance was when it was deemed wise for two of them to accompany Mr Poison. During all these months in which the commission has been gathering evidence, the Bank of New Zealand also seems to have been busy, for an innovation such as it proposes is not designed without much care. Surely its move la a further indication that there is need for reform. When produce prices slumped in 1922 the farmers were forced to search for cheaper money. It is quite possible that the earning" power of money may before long have a considerable fall, and farmers will find relief in that way. In the meantime it is good to see this offer of the bank to try and meet the situation. I have no doubt that Cabinet sees as clearly as I do that any concessions or per. mits wished for cannot properly be granted to any proprietary company until the com. mission returns and its report has been made public and dealt with by Parliament.”