HELPING FARMERS

Sun (Auckland), Volume II, Issue 509, 12 November 1928, Page 7

HELPING FARMERS

RURAL CREDITS SCHEME ADDRESS BY MR. J. N. MASSEY (Special to THE SUN) PUKEKOHE. Saturday. The distinct benefits conferred on farmers since the intermediate rural credits scheme came into operation were dealt with by Air. J. N. Massey, Reform candidate for Franklin, in an address delivered to about 90 electors at Punl. Ho stated that the board was working on sound lines, and was gaining- the confidence of investors. With the full support of the farmers it would be an agricultural bank in every sense of the word. Air. Massey also said that an Act to provide for city dwellers to participate in the rural credits scheme and establish themselves on small farmlets in the suburbs, was to be brought down at the next session of Parliament. The speaker said that the Intermediate Credits Board had started with a capital of £400.000, provided free of interest for 10 years. The sale of its first issue of bonds had increased the capital to £600,000. The rate of interest at which the £200.000 was raised was in favour of the board, but he desired the Prime Minister to announce what the rate of interest was. The New Zealand Co-operative Dairy Company’s use of the scheme was referred to by Air. Massey. Previously, he* said, the company had a subsidiary company with a capital of £75.000 for financing suppliers, this money being lent at 8 per cent, interest. One-third

of the monthly cream cheque of the borrower was deducted as repayment. The board, after investigating the soundness of the company, had allocated £75,000 to the company to lend out to its suppliers at 6$ per cent, interest, repayment to be made by deducting as little as dne-fifth. oneseventh and one-eighth from the cream cheques. Air. Alassey also dealt with the benefits which had been conferred on wheat growers in the South Island by the action of the board. A provision of the Act which Mr. Alassey considered would prove tlie most important of all, was that providing for the discounting of farmers’ promisosry notes of amounts up to £IOO. Under this section, a farmer could obtain up to £IOO for purchase of manures and other requisites at 6£ per cent, interest, and at a cost of only 2s 6d for stamping, on condition that the promissory note was endorsed by a substantial firm or private guarantor. He was accorded a vote of thanks and confidence.