RURAL CREDITS

Southland Times, Issue 22766, 17 December 1935, Page 8

RURAL CREDITS

IMPROVED POSITION COMPANIES GUARANTEEING LOANS VALUE TO FARMERS (Per United Press Association.) Wellington, December 16. At the monthly meeting of the Rural Intermediate Credit Board the return of the position of companies guaranteeing loans and discounting promissory notes with the board which was presented by the Commissioner, disclosed that in the majority of cases the financial position had improved during the year and that where an actual improvement had not been recorded, guarantees and endorsements were still sound. Many of the co-operative Rural Intermediate Credit Associations operating under the scheme had recently held annual general meetings. In some cases the volume of investments previously shown had not been fully maintained, repayments made by borrowers having exceeded the amounts advanced to new members. That was evidence of the excellent manner in which borrowers had met their obligations. Some associations had recorded increased business and in almost every case appreciation of the good relations existing between the associations and the board and the value of the scheme to the farming industry had been expressed. The board approved of the extensions of delegations already carried out in favour of district organizations in respect of fixing annual repayments under the loans. Under the extended delegations associations, district boards and district supervisors will be allowed wider discretion in dealing with repayments and that would make for greater elasticity in administration.