RURAL CREDITS BILL

Stratford Evening Post, Issue 81, 3 February 1928, Page 5

RURAL CREDITS BILL

MR POLSON'S CRITICISM. PRIME MINISTER'S REPLY. Per Press Association. WELLINGTON, Last Night, Ihe Pnine Minister, the Rt Hon. ■r U . Coatea, stated to-day tliat his attrition had boon called to aJ report containing the substance of the remarks made by Mi: W. ,1. Poison at the recent meeting of t j lc Dominion executive of the New Zealand Fanners' Union when referring to the rural intermediate credit legislation. "It J.s )dea.r from Mr Poison's statements that the portion of the new legislation which provides for

the granting 0 f advances to individual fanners supported by sati.sfact- ;>'•>; guarantees," stated Mr Coate.s. Ihe report of the Royal Commission contained n (J such proposal, but provided that advances, to Miners should be made through the . formation of rural intermediate credit associatuMis consisting of not less than, L'(J members;, each of whom would be/ required to subscribe for shkres to a total value of one-tenth ot any loan obtained by him from the association, with a minimum of 25 £1 shares.

KNQO U RA ( i ia lENT OF COMPANIES. "The object of the proposed legislation, wats thus to encourage and promote!, the formation of co-opera-tivo limited liability companies with the object of obtaining finance for their farmer shareholders/' said Mr Coates, '/'the funds being provided from money to be raised by the Rural Intermediate Credit Board Juid advanced to the associations for tho purpose of making loans to their members. Provision was made in the Bill lor advances to individual farmors Oil the security of their stock and chattels supported by a, guarantee signed by one or more approved securities and guaranteeing ' the repayment of at least 20 per cent, of 1 (any .loan granted

Mr Poison's remarks appeal' to nnply that by thci inciu.sio.il of thcj additional provisions, the co-opei-jitdve principle has been defeated,'' Mr Umtea continued, "but it cannot be too strongly emphasised that the in lies b provision has been, made uih der the Act for the formation of as-4 Kowations exactly on the lines com-* teniplated in the Itoyal Commission's report, and the fullest opportunity is afforded for the formation of such associations. Mr Poison's, contention that tlie inclusion of the additional provisions has had the eifecb of nullifying the co-operate' system is nob well based, Tiio isuccess of the scheme will be practically dependent upon the extent to which the rural credit bonds commend themselves to .investors, and for this reason it will! be essential that ordinary business prudence shall bo exercised hi the granting of loans

CONSUMMATION FOR FARMMRS

"Tkcj Government ca'ii be roliecl on to seo that such a board is appointed to administer the Act as well as give the fullest consideration to the claims of fanners," Maid the Premier, "amd will see that they gain the fullest benefit from, the working of tho /Act consistent with tho maintenance of confidence on the part of investors. Ji i, s true, n implied by Mr Poison, Lhut the, bonds arc not guaranteed b.v the State, but tJicw Government has given substantial assistance to I lie scheme by making the sum ot ;C 100,(Kit) available without, interest, for the, period of ton yea.rs, and Hits postponed its claim to repayment of this amount in favour ol' investors in the bonds, who will obtain priority to the Government's claim in tin's respect.

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