RURAL CREDITS

Southland Times, Issue 22449, 12 October 1934, Page 8

RURAL CREDITS

A DIFFICULT YEAR. THE BOARD’S FINANCES. GRATIFYING POSITION. (From Our Parliamentary Reporter) Wellington, October 11. In common with other organizations dealing with farmers’ finance, the Rural Intermediate Credit Board has had a difficult year, but in its annual report to Parliament it is stated that the fact that borrowers from the board had been able to meet their commitments to so considerable a degree was a matter for extreme gratification. During the year £68,417 was advanced to farmers as compared with £72,154 for the preceding year. Since its establishment in 1927, the board has lent £1,065,179 to farmers, of which £690,216 or 74 per cent, has been repaid. Arrears of interest owing at June 30 last amounted to only £317. Through low prices numerous concessions have been made to borrowers, and the aim of the board has been to administer the system sympathetically, so far as this can be done without impairing the security of debentureholders. A process of decentralization has been carried on during the past year and amounts up to £350 can now be lent by district boards or committees. Changes have been made in the repayment system and now at least onetenth annually must be paid back by the borrowers. Dairy farmers have in the past had to give first charge to the board on their milk cheques, but to meet the position where landlords and mortgagees have demanded a first charge, the board has decided to consider recommendations that a second charge should be taken and the landlord or mortgagees’ claim must not be more than 25 per cent, of the cheque. Only in isolated cases up to the present has the board agreed to accept second assignments, as it required first charges except in special circumstances.