8.—14

34

Adequate steps were taken to give publicity to this issue of debentures and special measures were adopted to bring it before the notice of persons and organizations having a direct interest in the provision of finance for farm purposes, such as the directors of co-operative rural intermediate credit associations, the central executive and local branches of the New Zealand Farmers' Union, and other concerns closely associated with the farming industry. The present issue of debentures to a total of £100,000 has been made to supplement the funds available to the Board for financing applicants over the period immediately preceding the production months of the present year, during which portion of the year the Board has been able, as a rule, to finance the requirements of new applicants out of the substantial total repayments received monthly from borrowers. Sufficient funds have been contributed in response to the issue to ensure that the requirements of borrowers over the period in question will be fully provided for. 55. Collection of Interest, Instalments, and Monthly Payments due by Borrowers. —• A gratifying feature of the year's work has been the promptitude with which the great majority of borrowers have fulfilled their obligations regarding payment of interest and instalments in reduction of loans. The system introduced by the Board for the regular scrutiny of all accounts, and the rendering of regular returns of arrears, has revealed that the condition of the investments in this respect is eminently satisfactory. 56. Accounts of Associations. —Guidance to the secretary-treasurers of new associations in the opening and keeping of the associations' accounts has been readily furnished where required. Advice and assistance have also been continued in the case of the established associations. To secure uniformity and to reduce the cost to associations suitable books and forms were designed, and these are purchased by the Board in quantities and supplied to the associations as required. 57. Volume of Business. —The comparative figures set out in the first appendix to this report show that the total investments of the Board increased during the year 31st August, 1929, to the 31st August, 1930, from £215,170 to £405,789, an increase of nearly 100 per cent, after taking into account the substantia I repayments received in the case of practically every loan. Substantial increases were recorded in every class of loan, the most marked increase being in respect of loans to associations under Part II of the Act, where the investments more than doubled in total, the figures being £89,530 and £209,434 respectively. Advances to farmers direct under the provisions of Part 111 of the Act showed a substantial increase from £117,987 to £181,841, the majority of the loans being granted upon the guarantees of dairy companies. The face value of bills and notes discounted increased from £7,265 to £13,882 and the loans to associations for preliminary expenses, referred to elsewhere, increased from £394 to £632. The following comparative statement, which includes the loans actually outstanding on the dates named, the loans granted but not paid over, and the applications under consideration then, sets out the total business transacted by the Board np to the dates named : 31st August, 1929, £317,630 ; 31st August, 1930. £664,136. VALUATIONS. 58. Valuations in connection with loan applications have since the inception of this scheme been made by private valuers whose services are utilized as the necessity arises, and this system has throughout proved satisfactory for the Board's requirements. The formation of additional associations and the expansion of the business in other directions have made it necessary to appoint additional valuers so that districts in which a valuer had not been available within easy reach might be adequately served. They have, as a general rule, been independent valuers appointed principally upon the recommendation of rural intermediate credit associations upon their formation or on the extension of their operations to districts not previously covered by them, or of companies employing the direct-lending methods for the benefit of their clients or suppliers. In these cases the qualifications of the valuers have been investigated by the district boards, which have advised the central Board as to all appointments of valuers.