8.—9.

for the Board in the administration of the system. Under this arrangement a number of the senior officers at the Head Office have acted as executive officers, and branch officers have carried out the duties of District Intermediate Credit Supervisors and District Officers in the various districts throughout the Dominion. It should be pointed out, however, that although the organization of the Office has been made available for the working of the system, the Office and the Board are entirely separate entities, and the responsibility for the administration of the rural intermediate credit system rests solely with the Board. The Board has on several occasions expressed appreciation of the services rendered by the Office and the care and attention displayed by its officers. The work involved in the administration of the system has been, if anything, more arduous during the past year than in former years, owing to the difficulties with which farmers have been faced as a result of the continued fall in the prices received for primary produce. By far the greater number of the Board's borrowers ire dairy-farmers, and the reduction in revenue received by them by reason of the decline in the value of butter and cheese has affected their ability to meet their commitments. The Board has continued its helpful policy of granting concessions where they are shown to be necessary and are warranted by the conduct of the borrower and the position of the security. The consideration of applications for concessions received has been responsible for a large volume of administration work, notwithstanding that the demand for new loans and the work arising therefrom decreased. The position of the Board's loans generally must be deemed to be very satisfactory, the arrears of interest being comparatively small. There is abundant evidence to show that the system is proving of great value to farmers during the present difficult times in enabling them to obtain financial accommodation at a reasonable rate of interest and under favourable conditions. The administration on behalf of the Government of the Special Fertilizer Fund referred to in the last report has been practically completed, and it is very gratifying to find that the loss which will be suffered by the fund will be small. As the loans were made with the support of personal security only, the result is satisfactory and reflects credit on the farmers concerned and on the Board. CONCLUSION. 59. I desire once again to express my indebtedness to the Executive and to the staff of the Office for their devoted services and unremitting attention to the arduous duties imposed upon them and to the willing acceptance of the increased responsibilities which the existing conditions have brought about. With them I desire to associate the Agents of the Office, who so ably represent it in various parts of the Dominion. I have, &c, J. W. Macdonald, Public Trustee. The Eight Hon. the Prime Minister.

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