13

8.—14

Reports of the proceedings at the monthly meetings of the central Board were furnished to the press, and special statements have also been issued from time to time setting out any major alterations in the provisions defining the scope of the Board's lending business or of the general policy adopted by it. The Board records its appreciation of the extensive publicity given by the newspapers and the journals mentioned to matters arising out of its business. This publicity has been extremely valuable for keeping the scheme before the notice of the farming community and of possible investors in the debentures issued by the Board. 24. Conferences with Associations.—lt was stated in last year's report that a comprehensive series of conferences with directors of co-operative rural intermediate credit associations operating in the Dominion had been carried out by the Deputy Commissioner so that any difficulties with which they had been faced in the conduct of the associations' affairs might be fully discussed, and that they might receive first-hand information as to the general lending policy laid down by the Board. This undoubtedly assisted to a considerable degree in the smoother working of the association method. It was not considered necessary to arrange for a further programme of conferences upon these lines during the past year, but in any cases where practical difficulties of any moment arose in regard to the operations of any individual association it was usually arranged, if possible, for the Deputy Commissioner to confer with the directors and investigate the possibility of a mutually satisfactory solution of the difficulties being arrived at. Such visits to the districts were not, however, confined to the consideration of matters affecting associations alone, and special developments or difficulties arising out of the other classes of the Board's lending business were dealt with locally with a view to making any improvements in the organization of the scheme which might be necessary. If practicable these matters have been dealt with at the time of the Deputy Commissioner's visits to the districts in connection with his Public Trust Office duties, so that the expense involved has been kept at a minimum. 25. Addresses to Meetings.—lf it has been possible, arrangements have been made for the addresses to meetings of farmers convened for the purpose of considering the formation of associations to be given by the Deputy Commissioner, so that the fullest information may be available to those present at the meetings in regard to the working of the system and the basis upon which loan applications are dealt with. Since the last report such addresses were given to meetings at Dannevirke, Hastings, Waipukurau, Pahiatua, and Wanganui, the meetings at Hastings, Dannevirke, and Pahiatua being followed by the formation of associations, while movements to set up associations in the other districts are progressing satisfactorily. At the invitation of the Royal Agricultural Society of New Zealand, a further address dealing with the system generally was delivered by the Deputy Commissioner to the annual conference of the society held at Wellington on the 26tli June, 1930. Apart from the meetings referred to above, a number of addresses have also been delivered by District Intermediate Credit Supervisors to meetings of farmers, dairy companies, and other gatherings of persons directly interested in the lending operations of the Board, and valuable results have been achieved either through the formation of associations or by the decisions of companies to utilize the provisions for guaranteeing loans or discounting notes on behalf of their suppliers or clients. GENERAL AS TO LOANS. 26. Nature of System.—Although every opportunity has been taken of explaining to the farming community the exact nature of the intermediate credit system and the objects aimed at by its establishment, statements which have been made to the Board by borrowers and others, and criticisms which have been given publicity concerning the classes of security which the Board is prepared to accept, and the standard of security which is required of borrowers, indicate an imperfect understanding in many quarters of the essentials which must be observed by the Board if the system is to achieve that position in the financial life of the Dominion which it was designed to take. The primary object of the scheme is to establish a close