CO-OPERATIVE BANKS.

Poverty Bay Herald, Volume XXXVIII, Issue 12585, 16 October 1911, Page 2

CO-OPERATIVE BANKS.

The proposal to establish co-operative banks m New Zealand on the lines of the successful Continental institutions was referred m detail at Parnell by Sir John Findla» ; He said that if a number of men signified, their, intension to, go on, to the land, and wanted the money they would be incorporated m a. farmer's co-operative bank, and would then have power to borrow from the lending institutions or the Government a sum to be _„ed 1.1 proportion to their numbers and property. .: Ihat sum would be 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 m Germany, Belgium,, and other .countries,,. v and had done an immense amount of good. A man who wanted £50 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 4 or 4_ per cent, interest..^ What security is there? It is the man's honesty, his intlustry r -and his character.. . The ideal of democracy is .that a man of good, character, able to" make use of money,' should get it." (Applause). "Too good to be true, ' interrupted .one of the audience. Sir John Findlay : Well, wait «nd you will see it m operation next year. He went on' to say that 950 of the banks were lending a hundred millions sterling m Germany. ■ > ■. Another interrupter shouted. "Pawnbroking," to which the speaker's prompt retort -was, "I have heard that *>aid before, but I am not afraid of a name. The twenty men or so constituting the bank were, he continued, jointly and severally liable for losses ; and so when a man came to borrow money from them they could say,, "Well, you.-, are not a sober, industrious man. We cannot lend you money because;- you have not these qualities." Thus the effect of the farmer's co-operative ,bank. scheme would be a moralising one. The ■ 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 hot intended to grant large sums through co-operative banks, because large loans could be obtained as at present from the Advances to Settlers Department. The whole scheme was to enable a man with no money, but good character to get money to assist him in' his industry. .