WELLINGTON NOTES.

Hokitika Guardian, 24 July 1924, Page 1

WELLINGTON NOTES.

AGRICULTURAL HANKS

(Special to “Guardian”.)

WELLINGTON, July “1

As far as can lie gathered from bankers and others there is absolutely no objection to the farmers establishing agricultural banks provided there is no State guarantee. If the farmers can iiml the capital and the men to run such hanks there is no reason why they should not lie established. The ■State is already involved in a lending siheiije in tlie .Slate Advances Department and it would he unwise of the State to guarantee the capital or the assets of any Agricultural Hank. The question i- whether there i- a real netessitv for an Agricultural Hunk. In Kuropc where rural hanks flourish their services are given to small men exclusively. Surely it will not ho contended that the small failures are not adequately catered for by the Advances Depart incut, lit the states of the Cnniiiioiivvealth the limit of State loans was from Cl.OOtl to L'2,000, while in New Zealand the limiL was L'J.’il 10. which is far too much, for the larger amount tends to stimulate laud speculation. However business men in Wellington can see no objection to Rural Credits Hanks being set up by the farmers should they so desire so loop as they are willing to find the capital. In this matter the Prime Minister is fully supported hy responsible business men who consider that Mr .Massey is fully seized of the position.

ESSENTIA I. DUALITY NEEDED. It is contended that the essential quality needed for the successful working nf Agricultural or Rural Hanks is the true spirit of co-operation, which is lacking in this country. It is pointed out that very few, if any, of the cooperative concerns started hy farmers have been successful. IncHicient management has hud a good deal to do with it, hut with greater co-operation better results would have been obtained. Where such hanks are successful co-operation in it- widest anti highest sen-e exists. The German Agricultural Hanks have been a great success, hut in their case they ileal with a rural population that may lie said to he fixed. The farm properties remain in the family from generation to generation, there is not much Iraflicking in farm lands and the characters and poculnritics of the clients of an Agricultural Hank have lo lie taken into consideration in making loans. The absence of the co-operative spirit in New Zealand is emphasised by lhe fact that it has been impossible to form any co-opera-tive marketing organisation. Compulsion lias linen found necessary, and so we have the .Meat Control Hoard, the Dairy Produce Control Hoard, and there is likely to he a Fruit Control Hoard and a Honey Control Hoard, liven ihe Wool Committee had to he endowed with powers of compulsion, merely to regulate the quantify of waul to lie offered at each sale. It is dilliciilt to see liovv compulsion call he applied to tin- Agricultural Hanks and for that reason the chance- of success are small.

ISLAND FRUIT. The Hooding of the Wellington mar hot with oranges from lhe Cook Islands is a recent incident, and pave rise to a warm discussion in Ihe I rouse. At the request nf the producers the Government decided that ill" Island • learner should tail alternately at Auckland and Wellington thus giving the producers two markets. Wclliuginn besides serving an exten-ihle hinterland also serves tin- South Island nr a veil ■idctahlc portion of it. When tin- steamer was due at Wellington

very hip consignments ol fruit came from Auckland and when the Island consignment arrived the market was glutted, and oranges .-old at a shilling a dozen, to the great In-- ( ,f the Islander.-. It is possible that 1 here was a design in the consignment of Iru.t from Auckland on the eve ol the arival of the Island steamer, lhe Min i-ter in Charge of the Cook ltd. l. ids (Sir Maui Honiara) contended ill the House that the Auckland fruit merchants shipped Iruit down lo Wellington and tlie South Island with the object of queering the Wellington market. He also stated that all soils of pressure was brought to hear on the Government to try and slop the boat being diverted to Wellington. Admitting all this the fact remains that the Wellington merchants displayed a niih Utah!,.' want of business aptitude. They could and should have loresc.-n the p:r-silii 1 1 1 v oi the market being queered, for they knew there was eon-j siderable opposition to tin* diversion of the strainer, and they should have taken steps io 1 oiinleract its ellects. ('o-operalive eilort- were kicking in Wellington, hut such elfurts were most pronounced in Auckland. Houetcr, the diversion of the Island steamer is to continue in the interests ol the Islanders. anil no doubt in due course the coil Hiding interests will settle down into sonic sort ol harmony. In

spite of what may he said to the contrary Wvllin-ton people get through a considerable quantity of fruit in l!:e fo;irsi» <ll iho vonr.