For the Man on the Land

Waikato Independent, Volume XXXV, Issue 3336, 27 July 1935, Page 7

For the Man on the Land

DAIRY ADVANCES LOANS FOE IMPROVEMENTS /An appeal was made to the companies associated with the South Auckland Dairy Association by the actingMinister of Finance, the Hon. Adam Hamilton, asking them to co-operate with the Government in its efforts to give financial assistance to dairy farmers needing it for dairy shed improvements by administering and guaranteeing loan advances, and by collecting instalments of the sums lent. The matter came before a meeting of the.exeeutive of the association in Hamilton on Wednesday, when a letter in reply to the association's inquiry for details concerning the Government's scheme was received from Mr Hamilton. The Minister stated that since the previous circular was issued it had lieen decided to modify the conditions under which ad varices would be made to companies who were prepared to finance their farmer suppliers. Question of Security The Government, said the Minister, would be prepared to make funds available to dairy companies for approved work on the farm a;ad would "Take security cither direct from the companies by moans of a first or second debenture, or if this was not considered desirable, security would be taken from the farmer either in the form of a promissory note endorsed by the companies or in some other form embodying a guarantee or! repayment In- the company. Any advances made in either of these ways would curry interest at 4 per cent, but the Government would pay to the companies an amount equal to l p n r cent per annum on the aggregate amount of loans outstanding at the end of each half-yearly period. This wouhl be equivalent to a payment of I per cent as administration expenses incurred by companies in deducting loan charges from the dairy cheques of suppliers. The Minister concluded by appealing to the members of the association for their co-operation in the desire 1o improve the quality of dairy produce. "Responsibility Too Great" The attitude of those present was

that the dairy companies were already carrying heavy financial loads, and could not assume the responsibility attaching to the guarantee of loans advances to farmers who probably had lost all equity in their properties and had orders on their dairy cheques almost, to the full collectable amounts. It was felt that too much authority would be given to inspectors to decide that a farmer must remove or carry out improvements to his dairy shed and expect, the dairy company the man supplied to guarantee the loan required for the work. The meeting was unanimously of the opinion that it was unfair to ask the dairy companies to guarantee such loans, and that the responsibility should be assumed by the Government. A resolution that the Minister be advised to this effect was carried.

It was pointed out that the conditions provided for advances of not less than £lO. The members considered that should a farmer require goods such as milk cans to the value of less than £lO, the dairy companies should be permitted to purchase bulk supplies with loans advanced by the Government and make their own arrangements with farmers for supplying retail orders. Tt was decided to ask the Government to grant this request.