FARMERS' CO-OP BONDS

Press, Volume LVII, Issue 17127, 23 April 1921, Page 13

FARMERS' CO-OP BONDS

A LETTER TO SHAREHOLDERS FROM MR RELPH.

It is unnecessary for me to stress tho point that many Farmers require temporary financial aid to enable them to 'tarrvW' during the present phase of stringency. We hare assisted our clients to the utmost of our ability but if we are to give still further help it is requisite for us to secure more Capital. In the ordinary course of events, wo should have had hundreds of thousands of pounds more coming m at the present time from sales of surplus stock. Instead of the average tanner being in a position to pay off bis advances, I find that it is needful for us to allow a little laiitiMe. To force Farmers at thh time to*fiquidate their obligations would mean financial disaster fqr many of them, and for tlie Dominion as a whole. This wo do not want to do it we can possibly help it. The permanent assets of this country are as valuable and as sound as ever. Ihe existin" difficulties are due to a shortage ot feadv monev, resulting from excessive importation and reduced prices of farm products—merely temporary disabilities. Tho Dominion's prosperity demands that every Farmer should be assisted as much as possible to enable him to keon working, and to maintain his farm and property in a productive condition. To call up our -uncalled capital at tins time, while it would bring in a considerable sum of money, would embarrass the very people whom we wish to assist, as the bulk of our shareholders are "me'n on the land." To offer additional Preference Shares at a high rate of interest, would mean a burden on tho Company for all time, besides which it would be unfair to our existing Shareholders. After consulting leading Financial Experts, tho Directors came to the conclusion that some plan of securing temporary Capital should be adopted, and it was decided to issue £500,000 worth of Bonds, having a currency of five or ten years/ at the option of the purchaser. Of these, applications for -0250,000 are now invited from the public. The Bonds are offered in an attractive manner, which will, I. feel sure, appeal to the general investor, and I am certain that the issue will be quicklv token un. The Bonds are in Bearer Form, and can be transferred like banknotes, and carry interest at the rate of 7i per cent., free of Income Tax, payable half-yearly/ They arc in threo denominations of £25, £SO, and £IOO. ' ;' 4 I feel confident that there is. plenty of money stored up in the savings of prosperous wage-earners, professional men, and business executives. It will be a national benefit to bring this money into circulation, where- it is most needed, and will do most good; that is, to further assist the Farming Community. . Even amongst our o.wn sharebrokers I know there must be a good proportion who are able to take up these Bonds. It is a splendid investment. 1 would remind Shareholders that ever ■since the inception of the New Zealand Farmers' Co-op. Association of Canterbury, Ltd., in 1881, it has been remarkably successful. We now have nearly 12,000 Shareholders,, and our turnover last vear reached the largo sum, of £5,501,M0. During the thirty-nine years of the Association's existence, we have paid an average rate of dividend of a little over 8i per cent. have built up a splendid Reserve Fund, and during the whole of that time wo have rendered material assistance to our members. To take one- item alone, namely, that of commissions, I would mention that the rates, ruling here today are half of what prevails in other parts of tho Dominion. The Association directly and indirectly has been responsible for the sayingof many thousands of Bounds te'the* farmers of Canterbury. Judged by ordinary financial standards, tho Farmers' Co-op. has been wonderful successful. Looking at the matter from the p.oint of view of savings to Shareholders, it has been of untold benefit. , I fully recommend the present issue of Bonds to any of our Shareholders who halve ready money available. Tho security supporting; the issue amounts to over one-and-a-half millions. Those who have not already perused a. Prospectus would do well" to secure a copy from any of our Branches, or from any Branch of the Bank of New- Zealand Copies are also available from any member of tho Stock Exchange, or a copy will be posted 'direct from tho Head Office, if desired. E. '"W. RELPH, Superintendent.. Christchurch. April 23rd, 1921. . <?