FINANCE FOR FARMERS

Taranaki Daily News, 19 May 1928, Page 5

FINANCE FOR FARMERS

RURAL INTERMEDIATE CREDITS. DISCUSSION AT HURWORTH. (Ih'oni' Our Own Correspondent.) Thursday evening brought a good attendance at the Hurworth Hull, called by the Hurworth branch of the Farmers' I nion, to benefit by an address by Mr. McKay, of the Public Trust Office, on the subject of intermediate rural credits. Mr. Benoni White presided, and, before calling upon Mr. McKay, referred to the meeting as essentially one of farmer® held under the auspices of the union, whose prosperity depended upon all pulling together in united action, not merely from a local, but a national aspect as primary producers; and whether the produce was grain, roots, wool or butter, the common lot was shared in some degree by being up against perplexities and difficulties now attendant upon drawing wealth from the soil. The State was actively doing much in the way of service to ease strain, and to help in overcoming disadvantages, but the Farmers’ Union considered that more guidance and direction were needed in dealing with State schooling. This was being fought for. It was serious to consider that, with our towns already overcrowded with unsuccessful applicants for occupations, out of the 200,000 scholars being dealt with in State schools, only a small percentage on finishing education, went on to the land, or followed those rural pursuits upon which national existence really depended; the greater number of such scholars going to the towns to literally “tumble over each other” iq the scramble for jobs. From the school children of the present the farmers of the future are to be drawn; more encouragement and direction therefore should be brought to bear upon scholars to prepare for this future of agriculture, to fill the gaps, and help recover the balance of population, and check the drift to the cities. This condition the union was trying to secure, and all who linked up with the union would strengthen this movement for their own betterment, and the saving of the nation from possible disaster.

Mr. McKay’s address, lucid and in structive, covered the general ground already widely published in our local press; securing at its completion many pertinent questions on points of special interest. It was shown that the -formation and registration of an “association” incurred the initial outlay of £G 6s, which was more than amply provided for by the grant forthcoming from the district board of £25, free of interest for 10 years. This fund was increased for meeting working and over head expenses by the J per cent, difference between the 6 per cent, paid by the association for the loan money and the 6J per cent, charged to the borrowing member. Mr. McKay showed that under good and vigilant management an association might certainly accumulate a reserve fund which might eventually take the form of a dividend. The chairman drew attention to some special features dealing with individual loans (whether by members of an association or otherwise) as reported in the Press; that supervisors (board officers) approved of co-operative dairy companies whose financial position is satisfactory acting as guarantors for loans; securing gradual and easy repayments by deductions from monthly mil-king cheques. Another development US reported, was the willingness of credit boards to discount promissory notes up to £lOO when endorsed by companies with whom the borrower is dealing.

The question of necessary “scrutiny” into the nature of the chattel or other security, also into the “character” of the applicant for a loan, was made clear, and the power given an association to “foreclose” 'by calling in the loan money was clearly made a desirable power, to enable associations to keep the borrower up to a high standard of reliability, and as an additional assurance to the investing public. Fluctuations of currency iu the money market were inquired into, and when such took place a gradual adjustment could be made to meet a rise or fall, but in no case could the interest be raised upon the borrower exceeding 7 per cent. It was disclosed throughout the address that the outstanding principles

kept in view by the Intermediate Rural Credits Act was to afford financial relief to farmers with the greatest ease, expedition and economy consistent with all-round safety, and was a decided attempt to 'Help farmers to help themselves. At the conclusion a vote oi thanks was accorded Mr. McKay with acclamation. Mr. D. LeC. Morgan, secretary of the north provincial executive of the Farmers’ Union, followed on with a stirring appeal (with fighting spirit brought out by a few interjections) to all farmers to join the union, and stand by it loyally for moral support and numerical anil financial strength. A review of the wide field of work covered by the Dominion executive in promoting and influencing legislation was given, showing advances made in agrarian, interests, and generally furthering the welfare of farmers. The annual report of the live workentered into by the North Taranaki provincial executive was read, interspersed with telling comments, which should have conveyed to many a greater sympathy with the union’s objects. Mr. W. G. Stanton endorsed all that the secretary had said, and hoped that members of the union would not allow any trivial differences of feeling to mar the progressive work that was going on. A hearty vote of thanks was passed to Mr. Morgan. A proposal that the Mangorei and the Hurworth branches of the union should amalgamate was deferred for consideration until June 14, when a -special meeting will be called to deal with the suggestion.