RURAL CREDITS.

Pahiatua Herald, Volume XLIII, Issue 13086, 21 October 1935, Page 7

RURAL CREDITS.

THE ANNUAL REPORT. BUSINESS INCREASES. The annual report of the Rural .Intermediate Credit Board for the year ended June 30th, 1935, reads: . In accordance with the provisions of section 76 of the Rural Intermediate Credit Act, 1927, I have the honour., on behalf of the Rural Intermediate Credit Board, to submit a report on its operations for the year ended 30th June, 1935.

it is gratifying, to record that the new business for the past year showed a larger increase than that disclosed for the previous year. For the year ended 30tli June, 1935, loan moneys advanced by the Board under all headings totalled £84,952, •as compared with £78,417 for the year ended 30tli June, 1934, and £72,154 for the year ended 30th June, 1933. A further advance in the prices of dairy produce during the year ending 30th June, 1936, would stimulate confidence on the part o»f the dairy farmer and probably lead to an expansion of the Board} s business. Even with the increase recorded during the year under review, however, the volume of business transacted during the oarlier years of the Board’s operations lias not been approached. The reasons for this have been disclosed in previous reports.

.The total amount advanced by the Board since the inception of ihe scheme to 30th June, 1935, is £1.150,131 Tos 6d, and the net investments at that date were £260,144 5s 9d. It will be seen that over a period exceeding seven years borrowers have repaid the sum of £889,987 lOs 9d, or more than 7 7 per cent, of the amount advanced. Ill© arrears of interest at the 30th June, 1935, amounted to £314 only’, ihe members of the Board have placed on record their satisfaction with the results achieved in the collection of repayments of principal and payments of interest and their appreciation of the work of the officers of the Board and the efforts of borrowers to meet their obligations.

The Board lias recognised that it cannot, as a rule, expect to collect inpayments fixed under loans granted when the prices ruling for primary produce were higher" than they are now, and has, since produce prices receded, followed the policy ol treating on its merits each case where a borrower has asked that the repayments be reduced or deferred. N umerems concessions have been granted, . and the ability of the Board to give satisfaction in the majority* of cases is apparent from the fact that a comparatively small number of borrowers has had recourse to the Mortgagors and Tenants Relief Act, and in only isolatecl cases has the measure of relief obtained exceeded that which the Board would have been prepared to grant had it been approached for concessions. Ihe Board .has consistently met changing conditions by appropriate modifications of policy, and although, as might be expected, the Board and associations do not completely agree as to the measure of delegation which should be authorised, it is believed that the associations have generally appreciated the changes which have been effected and are strong advocates of fina lie mg through the Rural Intermediate t redit svstem. The rate of interest charged to borrowers when the system was first introduced was G'J per cent, per annum. This rate was reduced to 6 per cent, as from the Ist Mav, 1933. while in August, 3934, the Board decided that, although a substantial sacrifice would result, the rate should be further reduced to o per cent, per annum from the Ist September 1934. The reduction in each ease applied to existing as well as to future leans and was made in respect of all classes of the Board’s business. In continuation of the Board s usual practice associations have been allowed a margin of J per cent, from which to meet working expenses and create a reserve. It is considered that the rate of 5 per cent, is a very favourable one for borrowers who obtain loans on the class ol security acceptable to tlie Hoard, especially v, hen it is borne m mind that interest is payable on The daily balances in the accounts, and ceases automatically on amounts repaid from time to time*. PUBLICITY. Newspapers and farming journals: \ aluable assistance has again been rendered to the Board by newspapers and leading farming journals throughout the Dominion in publishing reports of the proceedings ol the Board, district boards, and associations, and conveying to the farming community matters of intcrost regarding the Rural Intermediate Credit system. Supplementary' lines of farming: Continued assistance has been given to the development of supplementary lines ol farming, sucli as pig-raising. The Board has co-oper-ated in the lecture and demonstration tour ol the North Auckland, -luckland, Waikato, King Country and Taranaki districts arranged by the Pig Recording Club, in conjunction with tin* Department of A<*ricidture and the New Zealand Meat Producers’ Board, and undertaken hy Mr E. E. Hale, chairman of the Y aikato Pig Recording Club. As the Board had an ample supply of funds available to assist farmers who desired to undertake or increase pig-raising activities, and who could comply with the reasonable requirements of the Board, Mr Hale was supplied with up-to-date information regarding the system, and a number oi the Boards pamphlets was provided for distribution to inquirers.

Agric lltural bulletins: The Bo arc i has undertaken tin* responsibilit y ol issuing and distributing quarterly agricultural bulletins prepared by the staff of the Massey Agricultural College, Palmerston North,

for the benefit of farmers. Four bulletins have been issued, their subjects being: (1) September. 1934. "The Feeding and Management ot Dairv Calves; (2) December, 1934, “Tuberculosis*’ ; (3) March, 1935 “Establishment and Maintenance of Pastures'; (4) June. 1935. “Management of Grazing in Relation to Production from Pastures.” Fifteen thousand copies of Bulletin No. 1 and twenty thousand copies of each of the other three bulletins were printed, and a distribution was made to farmers with the ready assistance of dairy companies and co-operative rural intermediate credit associations. Favourable comments which have been received and the willing co-operation of dairy companies and associations ill effecting distribution are evidence that the bulletins are appreciated. Value of association method: The Board has from time to time emphasised the value to farmers of the association method of obtaining loans, and the advantages to be obtained from having available the advice and experience of the farmerdirectors and the secretaries. The excellence of the work performed by the great majority of directors and secretaries is now well recognised, and it. is almost superfluous for the Board to place on record its appreci ltion of it. It is evident that there are many farmers who are in a much stronger position today than they would have been had they not had the benefit of flu* sympathetic- counsel and guidance of the directors and secretaries of associations. It is very gratifying to the Board to report that during a period ot more than seven years, including some ot the most difficult ever experienced in the Dominion, and with a total lending 'business of £1,138,240, only two losses have so far been experienced by the Board, the total amount; involved being £504 13s 5d only.