LOANS WANTED ON RURAL SECURITIES.

Star (Christchurch), Issue 18615, 17 November 1928, Page 2

LOANS WANTED ON RURAL SECURITIES.

COMMISSIONER REPORTS FULLY TO NEW BOARD.

Per Press Association. WELLINGTON, November 17. At a meeting of the Rural Intermediate Credit Board, a statement presented by the Commissioner (Mr J. W. MacDonald) showed that good progress had been made in connection with the administration of this new system of rural finance, and that a satisfactory volume of business had been transacted by the board under all headings. At the meeting, consent was given to the registration of Rural Intermediate Credit Associations formed in the Wairarapa district and at Te Aroha. It was also reported to the board that a further association had been formed at Wright’s Bush in the Southland district, and would shortly be approaching the board for consent to registration as a preliminary to commencing active lending operations. Information before the board as to the personnel of the Wairarapa and Te Aroha Associations indicates that the associations are composed of a very satisfactory type of farmer, and it may be expected that the operations of these associations will reach substantial dimensions upon a sound basis. The total number of associations formed throughout the Dominion is now twenty. Applications by dairy companies and other guarantors for acceptance of their guarantees in support of loans granted under Part 111. of the Rural Intermediate Credit Act, and for the increase of the limits already imposed by the board in regard to guarantees previously accepted, were dealt with at the meeting, in addition to proposals involving the utilisation of the discounting method of granting advances. Up to the present, thirty-four companies and firms have concluded arrangements with the board to guarantee loans to clients or suppliers, of which twenty-six are dairy companies. In all fifteen concerns have completed arrangements to discount notes and bills. A considerable number of applications for loans were considered by the board. These applications are additional to those which are dealt with by the district boards under the powers delegated to them by the board. Notwithstanding the fact that at this period of the farming season the dern..r»d for financial accommodation on the part of farmers is usually less marked, a steady volume of applications of a satisfactorv nature is being received, and it seems, before next farming season commences, that a substantial sum will have been lent out by the board upon rural securities.