FARMERS’ FINANCE

Dominion, Volume 21, Issue 118, 16 February 1928, Page 11

FARMERS’ FINANCE

Sir,—The safety of our Dominion depends on the soundness of farmers finance, "Primary Producer,” in tins morning's ■ issue of Tine Dominion, draws attention to this momentous tact when criticising Sir H. Beauchamp s statements at a meeting of the shareholders of the Equitable Building and Investment Co., Ltd., when he said: V, e have discontinued making advances to farmers, and are now confining our operations to loans on properties in Wellington and suburbs.” Sir 11. Beauchamp, commenting on "Primary Producer’s*’ letter, admits the company referred to bad "Ixien most unfortunate in respect to its. advances on broad acres,” "though Hie directors in every case were careful to obtain valuations of land from men who were regarded as experts and practical farmers." , ~ He adds, "the shareholders, I am sure, will approve of tl-u, alteration in the policy of the board." Such statements from a man of Sir H. Beauchamp’s eminence in financial circles require much careful consideration and attention to his further statement, "that special financial facilities have been afforded to farmers by, not only the various State Departments, but by” many lending companies in this Dominion/* "So far as t he State is concerned, I claim that land values a lew years ago were greatly inflated by the cheap and abundant monev which was then placed at the disposal of farmers. These and other remarks re amortisation by Sir Harold Beauchamp, together with his advice to farmers some years ago to be careful, indicate the acknowledged capacity of a most highly appreciated and respected banker. Farming is like banking in some essentials, such as the necessity for busi-

ness capacity and knowledge of the unstable values of money, as is shown by lluetuating rates of interest. The Stalo and bunking institutions blundered in assessing values of broad acres, as did also the less experienced of the farming community; yet Now Zealand, recovering from its inflation, finds that farm lands are sound securities, and that there arc men of ability and probity who can calculate safe assessments for advances. May 1 ask whether similar inflation did not occur in civic centres, also, and whether amortisation principles, have not appeared to assist in stemming the possible deflations. Financiers, while hoarding the golden eggs, will find it necessary to attend to the health of the ese if they wish to rear auriferous goslings. It is possible to devise sound amortisation schemes for farmers. If the State and bankers condemn such for farm lands, they may with equal wisdom condemn all credit, and render their one talent—l say it with all reverence — to "The Great Capitalist," and reap their just condemnation. The safety of our Dominion depends on the soundness of farmers’ finance. — I am, etc., ANDREW BUCHANAN. I’almerston North, February 13.