B. —14.

20

The amending Rural intermediate Credit Regulations made on the 17th September, 1928 (New Zealand Gazette No. 70, 20th September, 1928), included a provision authorizing the directors of associations, with the approval of the Board, to impose charges for the consideration of applications for loans, to be payable by the applicants whether loans are granted or not. The Board upon its part has, within its powers, done everything possible to assist associations to keep the expenses of administration at the lowest figure. All legal forms and accountancy and other records which are required for the use of associations in any number have been printed by the Board, and supplies made available to associations at cost price. Advice upon matters associated with their business operations is at all times freely given by the officers of the Board, and any suggestions which have been put forward by associations with the object of making for the more economical or expeditious conduct of their affairs or otherwise have been given careful and sympathetic consideration. It has been found to be a considerable advantage to combine the positions of secretary-treasurer and solicitor to the association, as the remuneration for the secretarial work is then supplemented by the professional charges levied in connection with the preparation of securities. In the case of eleven of the a ssociations formed up to the present, arrangements have been made for the performance of the duties of secretary-treasurer bv the solicitors for the associations. 40. Assistance rendered to Associations. —The importance, in the interests of efficiency and smooth working, of rendering directors and other officers of associations fully cognizant of the lines upon which the Board is working in considering loan applications, the extent of security called for, and the requirements of the Board in other respects has been fully recognized. The District Intermediate Credit Supervisors are, ex officio, directors of associations operating in their districts, and as far as possible arrangements are made for their attendance or representation at directors' meetings when loan applications are being submitted for consideration so that the principal requirements of the Board may be fully provided for. In many cases, however, the associations' offices are situated at some considerable distance from the District Supervisors' offices, and their attendance in person or by deputy is not practicable. It was on this account considered advisable to compile a booklet supplying directors and secretary-treasurers with information regarding the practical handling of loan applications and the associations' business generally, a general statement as to the principles followed by the Board in granting loan applications, and a guide to the various obligations imposed upon the directors and secretary-treasurers. Copies of the booklet were furnished to all directors and secretary-treasurers of associations throughout the Dominion, as well as to members of the District Rural Intermediate Credit Boards. This action should not only result in the more efficient handling of applications for advances to members of the associations, but also save disappointment to borrowers whose applications may be entertained by the directors but subsequently declined by the Board upon the ground that the security proffered is insufficient or that the application does not fulfil requirements other than those relating to the extent of security. Many expressions of appreciation have been received from directors and secretary treasurers as to the action taken, and assurances given that the booklet will prove of material assistance in the conduct of the lending business of associations, Provision was made in printing the booklet for additions and alterations as the policy of the Board is developed and extended from time to time. At the time of the formation of associations, also, the secretary-treasurers are supplied with detailed instructions for the keeping of the accounting records of the associations. As a further measure of assistance to directors in their work, it was arranged, as stated elsewhere, for the Deputy Commissioner to visit every district in the Dominion and confer with the directors of every association. This programme has now been completed, except that a special visit to the Northern Wairoa Association was not considered necessary, as the Deputy Commissioner was visiting the district at the time when the association was formed and was then able