AGRICULTURAL BANKS

Southland Times, Issue 19655, 4 October 1922, Page 5

AGRICULTURAL BANKS

THE INITIAL DIFFICULTY. STATEMENT BY THE PREMIER. (Special to the Times). WELLINGTON, October 3. “The difficulty about agricultural banks is that they are not going to be worth much unless the Government puts the guarantee of the State behind the banks or puts money behind them,”' said the Prime Minister when speaking at Levin last night. He had mentioned that the subject was being considered by a Parliamentary Committee, and that the establishment of agricultural banks was not going to prove an easy matter. . “I am going to ask Parliament to put legislation through to form agricultural banks if they wish to do so,” added Mr Massey “but the principle of joint and several has not been popular in New Zealand lately, and that is the principle behind agricultural banks.” The Prime Minister proceeded to sketch his proposal for strengthening the State Advances Office by adding £2,000,000 of new money to the funds available for loan purposes and by providing machinery for small loans on chattel security. The officers of the Department, said Mr Massey, believed that the system that had proved so successful in connection with repatriation could be applied more generally. The new branches of the Department would be prepared to make small loans, probably not more than £250 or £3OO, on chattel security. The man who wanted to buy a milking machine or other plant or to extend a business would be able to apply for a loan, and if his case was suitable he would get the money at a reasonable rate of interest. "If" wc cannot establish successful agricultural banks we are going to get the result in another direction,” said Mr Massey. “I am copying the one form of agricultural bank that has undoubtedly been successful.”