The Waipa Post. Printed on Tuesdays, Thursdays, and Saturdays. THURSDAY, 8th JULY 1926. AN AGRICULTURAL BANK.

Waipa Post, Volume 32, Issue 1780, 8 July 1926, Page 4

The Waipa Post. Printed on Tuesdays, Thursdays, and Saturdays. THURSDAY, Bth JULY 1926. AN AGRICULTURAL BANK.

THE early return to the Dominion of (the three Commissioners who have been abroad for some months past investigating the prospects of establishing an agricultural banking system in New Zealand will serve to revive interest in the project. It is a matter of particular interest to the farming community, and of indirect interest to all the rest of the population of this country as on the prosperity of the farmers—the backbone .of the country —depends 'the prosperity of the towns and cities. The recent announcement of the Bank of New Zealand's chairman (Sir George Elliot) that that institution is seriously proposing to obtain authorisation for making longterm loans to farmers on freehold 'security is claimed by many to be an effort to forestall the establishment of a purely agricultural bank —an institution that, so we are told, would rob the Bank of New Zealand and the other established banks of much of their lucrative business. It may be of interest to note that shcemes for providing farmers with a better system of credit are being devised in various parts of the Empire. In South Africa it is proposed that a central board of

the Land Bank should divide the coun- |

try into agricultural loan districts or areas. For a start these areas -would he fairly large, hut they would in course of time be reduced in size. In ■each of these areas an agricultural loan society will he created. These loan societies will he branches of the Land Bank, and they will have practical farmers a& their directors. The capital of the loan societies is to be obtained by means of public subscription, and it is intended that no society shall come into existence 'u,ntil its subscribed capital has reached £SOOO. The object of the society is to make advances to its members against their crop s or other securities. The Canadian Government with the object of initiating a system of rural credits, proposes to create a Canadian Farm Loan Board. It is proposed to provide for financial assistance and purchase of land and seed, live stock, implements, and equipment upon the security of first mortgages. Loans are to be confinedto farmers, and not to exceed 10,000 dollar's (£2000) in any one case. The [Dominion 'Government is to provide the initial capital for the board to an amount not to exceed 5,000,000 dollars (£1,000,000) of which 1,000,000 dollars is to be cash. This will be the foundation of a Land Bank. The subsequent stock will be provided by subscription as follows:—The Dominion Government is to subscribe for 5 per cent, of the loans of provincial Governments and also for the same percentage of all loans within their boundaries, and each borrower will be compelled to take out stock to the value of 5 per cent, of his loan.