RURAL CREDITS ARE EXPLAINED BY MR NORTON FRANCIS.

Star (Christchurch), Issue 18585, 10 October 1928, Page 6

RURAL CREDITS ARE EXPLAINED BY MR NORTON FRANCIS.

WILL HELP WORKING OF FARM PROPERTIES. A detailed examination of the various rural credit schemes in, .operation in the Dominion was made by Mr: Norton Francis, a member of the Central Rural Intermediate Credit -Board, in the course of an address to members of the Canterbury College Commerce Students’ Society last night. Professor A. H. Tocker occupied the chair. Mr Francis said that as a general rule, rural credit in New. Zealand to? day could be divided into two classes -long term credit, .usually provided by mortgages, and short term credit, which includes intermediate credit. Long term credit was required to purcnase farms: s short .. term credit to finance seasonal production. There were still instances where a farmer preferred to arrange all his finance through his banker and pay. the ruling bank rate on his overdraft. Such a method of finance could only be recommended when the farmer required only moderate advances, and was likely to make large reductions, in his overdraft in favourable seasons. Few bankers desired to make loans to customers against freehold land security, which were likely- to. remain permanent. They preferred the customer to get a fixed mortgage elsewhere and to lean on the bank for seasonal requirements only. After describing in detail various systems of rural finance, Mr Francis said that whatever organisation was to be successfully developed-in New Zealand must be suited -to the special conditions of New Zealand farmers, and these varied somewhat in' different ■ parts of the Dominion. The Rural Credit§ Commission reported that they could make no recommendation to improve short term credit facilities in New Zealand. The intermediate credit system was being tried out, and efforts were being made to extend the work of the Government Advances Department in the provision of long term amortisable loans. The test of experience should show how far these .methods were suited to satisfy the demand, and how and where they required to be extended, modified or adapted. The prosperity of the Dominion was dependent on the profitable wofking of our agricultural and pastoral lands,; arid, therefore, it was to, the.interest of all our people to. .\J>r<svide *' the rural; credits required 'nrider **ibest possible conditions. - j 1