WELLINGTON NEWS

Hokitika Guardian, 10 September 1925, Page 4

WELLINGTON NEWS

RURAL CREDITS

(Special to “Guardian”.)

WELLINGTON, September 7

A good many people are wondering; why the Government thought it necessary to send a eonmiission abroad to inquire into the working of Agricultural Banks when it is known that all the information on the subject has been in the possession of the Government. There is a suspicion that the sole reason for sending the commission tiwav was to get rid of Al r \\ . J. Poison, who was becoming a nuisance, m a political sense to the Helena Party. Not that there was any merit in Mr Poison’s advocacy of agricultural banks to warrant the support that lie appears to have secured, and this can only be accounted for in the fact that nowadays the noise oi the big drum is mistaken lor classical music. The Government was not justified in appointing this commission which is (erlain to cost the taxpayers about c-j.ll!id if not more. Systems of rural credits are ill operation in Australia and the Government could easily have sent a departmental oflieor to inquire into these systems which are likely to be more applicable to New Zealand than the systems in vogue in Contiucntnl Kiiropo or even in the i nited Slates. The Commonwealth Government is about in establish a system, of rural credits, and a Bill is now helore the federal Parliament dealing with the subject. Apparently it is not intended to finance individual primary producers, but to help co-operative ;iml other associations concerned with the marketing and distribution of primarv products. It the Bill passes in the form in which it was introduced the Kill-ill Credits Department of the mercial Bank may make nd\ antes on the security of primary produce placed under the control oi the (oinmonwealt li Bank to a) the Commonwealth Bank or other hanks, tbi cooperative associations tunned under the law of the Commonwealth and (e)

such corporations or union-corporate bodies formed under the law ol the Commonwealth, a State or a territory under the authority of the Commonwealth. as are specified by proclamation. No advance is u> be lor a period ef more than one year. file Burn! Credits Department may, on behalf ol nnv institution mentioned above, discount bills secured upon produce placed under the legal control ol the C ontmnnwcalth Bank. Primary produce means wool. grain, butter. cheese, fresh, preserved or dried traits, hops, cotton, sugar and such oilier produce as is prescribed. As to the provisions of capital, the Treasurer may lend to (he Kura I Credits Department sums which shall not exceed L'.'i.OlKf.OtiO ; one quarter of the annual profits of the note issue department are to he paid into the Kura I Credits Department until tho amount so paid reaches L2.<H10.111)0. Then the Commonwealth Bank may raise money by issuing debentures to an amount not exceeding the amount, advanced oil primary produce by the Rural Credits Department, and -till outstanding, or to tour times tile aggregate of the sums lent by the Treasurer to the Ktirnl Credits Department, moneys paid to the department out, of net profit of the note issue department, and the Rural Credits Department Reserve Blind. DAIRY PRODI'C K PRICES. The prices current in London lor New Zealand salted butter are very much on a oar with those ruling last year, if anything the prices ruling 12 months ago were better than those current now. Thus last week Now Zealand salted flutter was qtiolpd at ll)7s. while twelve months ago the price was 2075, and two years ago it stood at 18(is. Lasi year there was a stcadv advance in prices and in the second half ol’ October New Zealand butter sold at 2205. The conditions last year were different from ultal 11',1‘v are non. Twelve mouths ago the Australian exports were very small and supplies were soon exhausted. I lie market was short until the new supplies from Australia and New Zealand name oil to tin* market. This year Australian supplies have been heavy

mul promise In conlinue su in vieu ul llm I n mi n! >t< ■ elimatie conditions. The market is nm nmv short of supplies although there may mil lie- much Id spare. ( hccse prices on I lie other liaml aiv vitv iniioli heller than they Mere a year ago. The l.omlon quolntion last week was 107 s against Ills twelve iiiiint hs ano ami I.los two years lino. The high nriees ol 1H22 led in an iin reused production in the following season whieli brought down prites. and the low prices ruling last year broughtahoul a ( iirtailinent of prodtietion in the past season with the consequential rise in prices, ami the movements are likely to lie repented. All the factories which can make cheese Mill do so to secure the current lush prices.