RURAL CREDITS

Wanganui Chronicle, Volume 71, Issue 222, 19 September 1928, Page 5

RURAL CREDITS

LOCAL SCHEME FAILS WANGANUI CONDITIONS UNSUITABLE Although the system of rural intermediate credits has prized very successful in the Wairavapa Taranaki and other districts, it has failed to become operative in the Wanganui district. The reasons for this failure in Wanganui were outlined by Mr T. R. Allen, District Public Trustee yesterday. He stated that there were four factors to be taken into consideration when trying to form a Rural Intermediate Association. These were the nature of the farming in the district, the security of land tenure, the financial backing available, and the human factor.

“In the .first place, farms in the Wanganui district are not suited to the formation of an association —the sheep farmers are not big enough and there are too many small dairy farmers, with little, or no security of tenure.” sai/1 Air Allen.

“Among these farmers there are two types —those who arc capable, and doing well, and consequently needing no loans, and those who have no security of tenure, or ability to work for such security. Tile latter are of no use to an association.”

It was explained that those who supplied. or who cou'd supply, the financial backing were the stock firms and dairy companies. Ha farmer were to apply to a stock firm to back him in a loan from the local rural credits association, he would bo refused. “And naturally so,” said

Air Allen, “for that would be taking business away from those firms. Many stock companies make their living from loans —cast iron loans—to the farmers.”

Already the purpose of the Rural Intermediate Credits Board had been defeated, but there wore other things to prevent an association being formed in Wanganui—complicated business matters among the farmers and some interested firms, and petty jealousies between both.

“The scheme has so far proved a failure here,” concluded Air Allen, “and I can’t sop that it. will ever gain a footing in the Wanganui district.”