WELLINGTON NOTES.

Hokitika Guardian, 5 November 1924, Page 1

WELLINGTON NOTES.

DAIRY INDUSTRY AMENDMENT BILL.

(Special to “Guardian”.) WELLINGTON, November 3. A correspondent signing himself “Butter-fat” writing to a local paper takes a very gloomy view of the Dairy Industry Amendment Bill, and expresses the opinion that it will cause an increase in the number of bankruptcies of farmers, lie gives the following instance as typical of hundreds of others:—“A” owned a dairy farm and was compulsorily, although illegally, allotted 800 shares of Cl each iu the dairy company he supplied with milk, lie paid up .C2OO and then sold to " 11.” “A ” then bought another farm and was compulsorily and illegally allotted GOO shares at Cl in another company, and these shares he paid up lo CIOO and then sold out to “C.”

“ A ” is now the happy possessor of a third farm, and lie has been compulsorily and illegally allotted 100 shares at Cl which he had paid up to CSO. II the new Act goes through “A” will owe CGOO to No ] company, CoOO to No 2 company and CJ2O to No company or C 1,120 in all. Now iu addition “ B ” was illegally compelled to lake up 800 shares in No 1 company and lie has since sold out so that between tlic three owners the -sum of C 2,100 is required to he taken up in shares on the lirst farm, and this is about six times the value of the owner’s equity. So that the life of these “ cockies ” may he thoroughly happy the new comers, some of whom have only paid up a few pounds iu capital, have passed a resolution that no interest he paid on the paid up capital of non-supplying slut reholders and, as the non-suppliers have no votes they are powerless to protect themselves. This means that their interest is confiscated by the suppliers, and the nonsuppliers shares are rendered worthless if paid in full. This Act will seal the doom of co-operative dairy companies, and will also make tlie sale of dairy property impossible. If the Act is seriously considered, provision should at least he Hindu to enforce dairy companies, which get their capital by compulsion, to pay the interest thereon at not less than hank overdraft- rates, and also to give every shareholder a vote according lo his capital in the company. It is these experiments in finance that are undermining the confidence of the country and the country’s prospects. RURAL CREDITS.

The Karin Land .Mortgage Association Rill introduced by the Government has been condemned by hankers and business men because it introduced tlm Bolshevik principle of subsidising one section of the community at ihe expense of the whole communty. The Dominion Executive of the Farmers’ Union condemns it because it is of no value to them as il would not even assist the farmer willi an average sized holding. The Bill is not what the farmers have asked for nor is it what they want. The farmers want the right to establish Agricultural Ranks mi the lines of Danish institutions. Mr Massey knows this and has known it for many years, and why he persists iu trying to fool the people who are quite as alert and ns intelligent as lie. is one ot those political mvslmies beyond solution, lie lias already embalmed in the Statute Rook one -;f ii | lit I and Useless measure mi rill nl credits, lull the mie lie is now fathering is about the stupidest and most vicious measure that has over been nut before Parliament. It has probably been made vicious in order to secure its defeat, and alternatively its value to the producers being nil, it would, if passed remain on the Statute Hook as a useless piece of legislation. The Government journal “ The Dominion” endeavours to make the Bill appear an honest etfort of the GoveinmonL to meet the wishes of those who desire to see Agricultural Banks established. It says: “If hind bonds are capable of finding as good a market as advocates of agricultural credits have claimed, then the smallness of the proposed Government loans certainly need be no obstacle to putting the scheme into operation. In offering these loans the Government is giving those who contend that agricultural credits are capable of being developed a lair and reasonable opportunity of proving their case.” By pegging down tbo rate of interest to M) per cent the Government makes it impossible for the bonds to be marketed and the introduction of the Bill is just one of those c(forts of the Government to save its face, although Air Massey has made a somersault on the question of Government assistance.

MARKETING RONDS. The Wellington City Council is marketing‘l.} per cent bonds iirnl is finding; the "ionlest dillienlty in getting the honds sold. There is u mistaken notion that tliese sought securities have merely to he placed on tin ni.u hot to lind a ready sale. Omni" the past two years. The market has been Hooded with these bonds, but they have now to face keen competition I'm in commercial ventures, which yield a better return to the investors. 1 lie amount of money seeking investment in "ill, edged securities is very limited and with so manv competitors m the market the money is soon mopped pp. If the Curin' Land Mortgage Association Hill is really put into operation the land bonds that would have to be issued at 1} per cent would he very coldlv received for the security would |,e unsafe without a Government "uarantcc, and the Government' dare not give that "inirantce.