OWN BANK WANTED.

Waikato Times, Volume 103, Issue 17409, 23 May 1928, Page 9

OWN BANK WANTED.

FARMERS SWGIBTENT. STATE FNANCE UNPOPULAR. The thorny subject of an agricultural bank project was discussed ut the ' provincial conference of the Farmers' Union yesterday. After lengthy consideration it was decided to urge emphatically upon the Govsrnment the need for legislation enabling farmers to establish an agricultural bank. , Captain F. Colbeok (Morrinsville), in a lengthy address, pointed out the simplicity of the banking system and asserted the Government would not let farmers have cheap money. . The farmers claimed they had a right to manage their own banks and if they failed it was their "funeral." Mr A. E. Robinson, provincial secretary, said the State had clearly indicated its inability to handle farmers' Jlaance. The State Fire Insurance had experienced trouble in the same way. The time would come when bonds would be refunded within a period at a tremendous profit—a profit which would go to the State and not to the farmers. The Actual Capital. "The real capital of the country is undoubtedly rural land," Mr Robinson continued. "Everything else is maintained by subsidies. Artificial manipulation of values is causing most of. the trouble. When you talk about wealth you don't speak about the value of Auckland but lhe value of exportable produce. The land and its produce is the real capital of tin; country. The banks have been opposed to an agricultural bank from the start. You cannot afford to borrow money at a minimum rate of eight and a-lhird per cent." The speaker added that the Rural Intermediate Credit scheme would not get the farmers anywhere and the conference should ask straight out for an agricultural bank. Captain Colbeck pointed out that the whole question was based on capital. There was no legal barrier to the formation of a bank if the farmers collected sufficient capital to obtain a charter. However, they wanted a bank without capital. After further discussion the remit was carried. The following remit was also passed: "That this conference views with alarm lhe proportion of State Advances made on non-productive security."