The Feilding Star. Published Daily. THURSDAY, OCTOBER 5, 1893. Liquid Assets

Feilding Star, Volume XV, Issue 83, 5 October 1893, Page 2

The Feilding Star. Published Daily. THURSDAY, OCTOBER 5, 1893. Liquid Assets

We have all heard lately a good deal about the banks curtailing business — calling in overdrafts suddenly, and so on — and without doubt there is a solid foundation of fact supporting these evil rumours. But, there are always two sides to a question. While we confess our knowledge that certain advances have been somewhat suddenly called in, we also are acquainted with the fact that they have been on broad acres, or other similar concrete securities. Now, the recent unpleasant experiences of banks and bankers in Australasia have taught financiers that, when under the exciting influences of what are known as " booms," they departed from the well-laid-down rules of banking and advanced money to sheep-farmers or land-speculators with a reckless disregard of possible future consequences, they to a great extent ignored commerce and commercial men. We do not intend to go over the old ground again, because our readers are already satiated with the subject, but we will confine ourselves to pointing out how well-justified were our opinions expressed some months ago when we said the banks had no right, under any pretence whatever, to enter into competition with private owners of money who were desirous of investing it in landed security. As we said before, they have had their lesson, and have apparently resolved to shun such evil courses for the future 80 far as we can understand from the somewhat limited information at our disposal, the new policy of the banks is to be the good old one of dealing j in " liquid assets," which means that a truly commercial business will be encouraged. Bills discounted which have a currency of, say, three or four months, are a decidedly more fertile source of revenue, and at the same time carry less risk in ordinary cases, than any other class of negotiable securities. Of course we only refer to acceptances from the shopkeepers, or distributors, to the general merchants, and not to similar documents given by the consumers to local dealers, although the latter may be good enough to hold as collateral security if the storekeeper wants a little assistance by waj: of advanco in his current banking account. Indirectly this should give a great impetus to business, and thereby materially assist in the commercial progress of the colony by stimulating commercial enterprise which has been for the la si tew years partially paralysed, or in fact dying from the inanition caused by capital being locked up or badly invested. We anticipate that in a very brief period there will bo a marked chaoge for the better apparent in business of all kinds, and that the epoch of commercial prosperity we indicate will be reflected on the farmers who have done so much to make this colony what she is as regards enterprise in opening up markets for frozen meat iu other parts of tho world.