FARMERS’ FINANCE.

Otago Witness, Issue 3961, 11 February 1930, Page 69

FARMERS’ FINANCE.

BANK RATE ON OVERDROFTS. NEW PLYMOUTH, February 3. “It is an unfortunate time for the banks to raise the overdraft rate when the farmers are requiring all the finance they can get in order to hold their wool,’’ said Mr W. J. Polson. M.P. The curtailment of imports was important, but careful discrimination on the part of the banks might have effected that curtailment without penalising the farming community. Under the circumstances the Government might assist, greatly by supporting the bonds of the Rural Intermediate Credits Board to enable it to lend against wool, as it did against wheat. There was no question of wool control, which was “ highly controversial matter, but merely a matter of ordinary finance/’ Any essential commodity which is 50 per cent, below cost of production must recover in price to some extent at all events, said Mr Polson. With advances at present brokers’ values at GJ per cent, up to £2OOO, the Rural Intermediate Credits Board’s limit could safely’ be made against wool in approved stores in order to give the market a chance to rally, and would be of materia] benefit to the farming. community. The question was of sufficient national importance, Mr Polson thought, to warrant the Government taking action. Mr G. W. Forbes, in reply to a telegram from Mr Polson, had expressed the opinion that such a proposal should come from the farming organisations with some degree of unanimity before the Government could consider it. “ The proposal is one to which the producers might give considera- | tion.” continued Mr Polson. “ The necessary’ machinery already exists.”