FARM FINANCE

Poverty Bay Herald, Volume LIII, Issue 16389, 11 July 1927, Page 5

FARM FINANCE

LIVING ON PROMISES FURTHER ARGUMENTS FOR RURAL BANK Claiming that, although the seriousness of the position had been realised by tlic Government, not lung of a practical nature had yet been done to relieve the position, the piesident of the, Wellington branches of the Dairy Farmers' Union. Mr. N. Campbell, in addressing the Conference of the branches ■in Pal merston North, dealt with the question of farmers' finance, and deplored the tact that the associated hanks had seen fit to increase the rale of interest, by .'; per ceni.. .Mr. Campbell claimed that adequate linanee for the legitimate requirements of primary producers was to-day the greatest problem facing the dairying industry. It was evident, from the presessional addresses by the Prime .Minister, ttie Minister of finance, and the Leader of the Opposition, as well as from recent speeches on the floor of the House, that the seriousness of the position had been fully realised. Unfortunately, however, nothing of a- practical nature had as yet- been done/to relieve the position. The Advances to Settlers branch had been practically at a. standstill for the last two years. The Bank of Zealand long-dated mortgage scheme held out Ijttle hope of relief, while the Rural Credit Act passed last, session had not yet crime into working order. "The farmer so far," declared Mr. Campbell, "lias been living on promises, with the result that conditions have become worse instead of better. The Government lias practically promised to give wider effect to the recommendations of the .Rural Credit Commission in connection with intermediate credits. Personally I have come to the conclusion that no scheme will be of any practical value unless it has a strong financial backing. Until we accomplish a gradual and general evolution from tlie present costly and unsatisfactory short-dated mortgage, system to a long-dated system, no relief of any importance will be given to primary producers."

Mr. Campbell considered that the greatest blow the New Zealand farmer had received during recent months was an increase made by the associated hanks in the rate of "interest by !_, per cent.. Although' the increase was no doubt the result of a scarcity of money generally, the economic position of the average farmer, ami the large profits made and high dividends paid hy Yew Zealand hanks for many years past, hardly warranted such a. step at tie present time, 'the economic and political effects of the increase might yet- outweigh by far any pecuniary benefits, and so prove a. short-sighted policy en the part of those in whose hands reste.l the financial responsibilities of the Dominion. It would certainly prove a strong argument'in. favor of an fgricultural bank, which, in face of the "independent attitude taken up by tfij associated banks, appeared) to be recoming a greater neccssitv everv dav.