WOOL CHEQUES.

Hokitika Guardian, 11 December 1924, Page 4

WOOL CHEQUES.

I.K.H'IDATINH FARM KISS’ DKB I S. AUCKLAND. Dec. 7. The wool cheques collected as a result of the Auckland wool sale total well over £7:s:).ii-:-i, |,ut the people who arc behind the scenes ami have an intimate knowledge of the financial position-. of the farmers of the district, slap- cmplm t e all v Dial nut .ill per rent, of till* half-million of money will ever lu> handled by the men on tinland. for the hulk of the cash must go towards the liquidation of debts, some of them long overdue. I hat the “oockicsYLlinve incurred to the hanks and LtaHßifc mercantile linns. £gßßßj*jmn-si-." comii'ciitcd a high "HicifraMKOtn- of the nilct ioneei ing linns. “irAvas a wonderful sale, and il is a thumping good thing for tin- eauiilr.v. hut the point that seems 'to have been missed is that it i* not all profit or anything like it.” The fact that farmers arc unable to raise loans on their land has perhaps led to a belief that for the past year or two they have been scraping along without money, and that the circiuuslances that money could not be obtained oil the security of broad acres lias proved a kind ol blessing in disguise l , because it prevented the farmers from raising fro.sh mortgages. This, of course, is quite a fallacy. The farmers have bad to gel. cash by honk or by crook, and their stock, their crops and their wool have had to he given as security for financial accommodation. Of the men who bought in the boom period it is estimated that at least 77-per cent, arc in debt. Kven the farmers of the fertile and prosperous Waikato have heavy liabilities to meet. In that district alone there is something like CIOD.OOB owing to a single mercantile firm, not- to mention numerous other creditors, such as the banks.

“There is a lien on practically every clip in one large area in the North of Auckland,” was the somewhat astou-i-hing statement made.. "II is surprising how few farmers there ale. even .•iinnlig those in a big wav. who are able lo pay their way with their own cash. For several years past arrears of interest have been accumulating, either wholly or ill part, quite a number of men being unable to pay more than half the amounts due each term. Thus the wool cheques in many instances win go straight to the creditors. The farmers, of course, get the benefit, hut the point is that the big prices obtained for the wool will not inaugurate a period of affluence ami squandering. such ns townspeople might he tempted to imagine when they learn that the clips from some (lucks realised almost as much as £1 a sheep.

I Some idea of the position may lie gathered from, the fact that for three years the farmers got iid per ll> for their wool and at that time it. cost them !)d per lb. to produce. At present wool can he turned over at Is per II). without the farmers incurring a loss, hut after an exceptionally had winter a bigger price is needed. One man recently list half of his hoggets, which, of course, left him with considerable leeway to make up. Before the farmers will he on their feet they will require at least two more good seasons. If prices remain lirtti fur that length of time, one may safely count on the “eoekies’’ being able to indulge a little in luxuries.

(•_’) within a land defence system; and (3) easily accessible h.v both land and sea transport.