RURAL CREDITS.

Waikato Times, Volume 111, Issue 18642, 21 May 1932, Page 5

RURAL CREDITS.

COMBINED DEPARTMENT

FARMERS’ UNION SCHEME.

TREASURY NOTES REJECTED

(Special Reporter.)

AUCKLAND, Friday

It was suggested in a remit moved at the Auckland Provincial Conference of the Farmers’ Union at Auckland today that the Advances to Settlers, Rural Credits, and Rural Intermediate Credits branches be amalgamated under the control of a board responsible to the Minister of Finance.

The remit proposed that the moneys to be loaned should he strictly restricted to rural securities; that the method of raising moneys be by Slateissued Treasury notes; and that loans he made to settlers at a rate which should be sufficient to pay actual cosls and contingencies, but not such as to provide a profit.

Objection to the board being under the control of tho Minister of Finance was voiced by Mr J. H. Furniss (Huntly), who is a member of a Rural Credits Association. “The restrictions imposed upon us from headquarters greatly minimise the help we can give to settlers,” he said. “We know men who are safe and will pull through If allowed to carry on, but our activities are hampered by the Government." Mr A. E. Robinson, provincial secretary, said the departments under discussion were run inefficiently, uneconomically and at excessive profit. The president (Mr A. A. Ross) was dubious about the scheme of issuing Treasury notes. It had been said unemployment could be remedied by Ine Governmcl.t issuing £15,000,000 worth of Treasury notes. This appeared to be another such scheme. It might be conceded that the monetary system was out of order, but Treasury notes should not be issued for any particular scheme. If at all, they should be issued for tho benefit of the whole country. “I don't think this would be favoured by responsible men,” he added.

Mr H. O. Mellsop (Franklin) : We should stick to one thing—full Inquiry into currency reform. (Hear, hear.) The opinion that it would be foolish to condemn the scheme without proper consideration was expressed by Mr E. L. Walker (Bay of Islands). Treasury notes were really a charge against the whole community made by the State, and on which neither the Stale nor anybody else faced interest.

The remit was carried, after the words, “that the method of raising moneys be by State-issued Treasury notes" had been deleted.