INTERMEDIATE CREDIT

Waipa Post, Volume 47, Issue 3386, 28 October 1933, Page 11

INTERMEDIATE CREDIT

HARMONIOUS WORKING OF SYSTEM APPRECIATIVE BORROWERS The Commissioner of Rural Intermediate Credit,' Mr 1 J. W. Macdonald, reported to the Rural Intermediate Credit Board at the monthly meeting that a number of co-opera-tive rural intermediate credit associations had held their annual general meetings recently. Jln practically every case gratification was expressed in the annual reports or at the meetings at the harmonious relations existing between the board, its branch officers, and the associations, and borrowers spoke appreciatively of the value of the system. One of the associations concerned had made loans exceeding a total of £50,000, and the success of its operations had demonstrated the benefit which resulted from the adoption of the rural community at a moderate rate system in providing finance for the rural community at a moderate rate of interest and under satisfactory terms and conditions.

' The chairman, Colonel J J. Esson, presided, and there were also present Messrs J. W. Macdonald, J. Brown, T. E. Corkill, N. Francis, J. N Massey, M.P., A. D. Park, and W. Waddel. The commissioner submitted a report on the conference of the. principal district representatives of the board and the executive officers of the head office, which was held recently in Wellington. The conference discussed a number 1 of matters of policy and procedure, and made recommendations to the board. These recommendatioons were ensidered at the meeting and. were approved in a number of cases.

It was stated that up to the present the board had retained the power to grant postponements of payments of principal and interest, but now that the board's policy was well defined and the district boards throughout the Dominion were fully conversant with it, it had been decided to delegate to a limited extent to district boards the power to approve postponements of principal payments. The extent to which the delegation would be made and the conditions to be imposed were now receiving consideration, and detailed suggestions would be considered by the board at its next meeting. The power to re-advance the proceeds of stock and produce sold had already been granted to district organisations, subject to limits as to the amounts involved and to certain necessary safeguards. The board approved an extension of this delegation, and increased the powers of the district supervisors in respect of loans granted by the board direct to farmers.

A number 1 of matters of procedure relating more especially to the administration of the system in the board's branch offices, which formed the subject of recommendations by the conference, were also placed before the board and were adopted.