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1929. NE W Z E AL A N D .

RURAL INTERMEDIATE CREDIT BOARD (REPORT OF THE) FOR THE YEAR ENDED 30th JUNE, 1929.

Presented to both Houses of the General Assembly in accordance with Section 76 of the Rural Intermediate Credit Act, 1927.

Sir* — Wellington, 26th October, 1929. In compliance with section 76 of the Sural Intermediate Credit Act, 1927, I have the honour, on behalf of the Rural Intermediate Credit Board, to submit a report on its operations for the year ended 80th June, 1929. 1. In the period covered by the report of the Board presented last year the activities of the Board were mainly directed towards the administrative side of the rural intermediate credit system. The inauguration of the system necessitated the evolution and adoption of a definite policy for the Board on matters covering a wide range of subjects. In addition, the machinery provided by the Act for the administration of the system had to be set up ; and this involved the appointment of district boards throughout the Dominion, and the taking of suitable measures to provide for the representation of the Board in every part of New Zealand. Not less important was the establishment of the special co-operative rural intermediate credit associations which the Act authorized to be incorporated under the Companies Act, 1908, for the purpose of obtaining loans from the Board for their members. It was necessary for the Board to take active steps to facilitate the formation of associations and to instruct the farming community regarding the advantages to be gained thereby. 2. At the opening of the year covered by the present report the Board had at its disposal efficient machinery for carrying on its operations, but though in the period covered by the Board's previous report much work had been done in the direction of bringing the system into full operation, it was still necessary to exploit thoroughly the channels which had been opened, but with the utility of which the farming community was not yet fully conversant. The steps taken during the past year to consolidate the ground made in the earlier phases of the scheme will be treated in detail in the course of this report. It is sufficient to state for the present that during the year the work of administration was facilitated by the delegation of additional powers to district boards and district intermediate credit supervisors, and by visits of members of the central Board and senior administrative officers to most of the districts in the Dominion. 3. On the lending side of the Board's business encouragement and assistance was given to the formation of new associations by placing at the disposal of the promoters the benefit of the experience of the earlier associations, and by arranging for addresses to farmers explanatory of the benefits of associations. Existing associations were assisted by conferences between their directors and representatives of

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