WELLINGTON NEWS

Hokitika Guardian, 29 September 1925, Page 4

WELLINGTON NEWS

.'JOINT STOCK LAND HANKS.

(Hpijci.il to "Guarcii'.n”.) WELLINGTON, Sept. AT A 11 uniLer of companies and linns have recently issued their annual reviews and while mnst ol them are nverbiirdeiieii with slatisties ol more or less value, one or two contain mailers of interest. Bor instance. Messrs |*vne. (iolild and (liiimiess Ltd. ol ( hristcliurcli. in tlieir review suggest l hat some system of joint stock land hanks, as are in operation in tin* I'nited States, should lie established in the Dominion, and ill order to popularise the hands of these land hanks, a. I nins or homily ol some sort should he giveil to investors in prclereiice to a reduction in taxation or a (level umeiit guarantee, until they have experienced the henefit ot having their money invested under a security en- ,. r i 11 : s a I a roe number ol farms, instead ~! one. the security being represented l,y bonds. These 'hanks should be so e.uist it uled ill'll, with adeipiiite preen tit ions. existing lending nist i t ill ioicand |.rnate lenders liruiigit timir -Jailor.-' eon Id lorm their ou i: banks lor i lie investment ot tapital coder their control. The necessity for enm|.u!s„ry sinking foods in c. m oveiiuit ’.vilh lice.- laid Ijtlili' urge.l iio.i ii IS suggested that tile amount d bi nkilllc fend repayable cadi year in reduction ol the mortgage lean should lie not less than one per cent. but in the event el had sen.-ins Ihe amount of sinking fund instalments might he

i. •nail l*-d l i stand over ami L ie' I : - nro made impossible mile..- the instalment.-. Here I'tv- 1 veals in arrears. 'I he retirement each year of hands to a value of the amount e >1 looped lor sinkinn I'u m 1 instalments should Usually ho sllilicicni to provide cash lor those h uidholders requiring nayiiiont ol their bunds for cxiepl iuiml reasons I 'dole date and thus prevent bonds from lulling below par unless interest r:ie - had risen iiieanw liile. I here ts a lurther advantage in paying oil' bonds mil. of -inking fund i iista I ineiils. as u avoids the 1 1. i I lieu 11 y of re-i nvi smell t a; ihese sums at possible lower rates of interest than are payable on the Imuhls. Once lirmly esiahlished, the sv.stem of land hank bonds lar investment. of iriisi funds in pielcronee to Ihe pieseii! system of loans mi lnortlar as lias been the ease in other eoinil ih's. 1 1 is s utmost ed that the land I inks should not he worked under any

State guarantee. or in conjunction with any I loveriiment ilepart mein . Bor ally . ueh hank I.) siiei eed the lending rate to the farmers must, lie low, and the 1 rouble at the moment is that investors will not lend ou land except at a reasonable rate of interest. It- is doubtful whether the land hanks could issue bonds hem inti: loss than o' nor cent., and llien there must he some special concession |o make them attractive. Many local bodies are finding it very diflieuit to get their o', per cent dehent lire.- taken up fy the public. There seems to he an impression that I lie services rendered by capital should receive less reiniitiornlnn than i- |:ii 1 1 for oilier services. The owner nf capital does not subscribe to this and so we linil that the (lovernmeiit’s etfort to peg down the rate ot interest is re-netintr on the State. The (tovernineiil is besieged with applications for Inaiis In •i'll use it is offering to I nil at n low rate of interest. Now ii is admitted that for liie (level iilrlen t to do all the lend ino would he a I calamity. That, however, is not inducing private capital to help the G.ivernment. TUB SIT! IK F. AND DA llf V INt!. Sa far the strike ol British -eanieo has not had any serious ollcrl mi the dairy farmers, hut that does nol mean that serious t nnseqlienees will not resuit. Practically all tile .'implies ~f daily produee available up to August 2S were cleared by Ihe - - Turakina. which will enable the companies u> draw against llwir August make and meet the monthly payments due a few days aye. If the Jtrike is no; i ailed ulf very soon I lie real pirn h v. di l e felt on or about O' lob -r '-’O. wh o the payment tor the September output will have to le> found. If. however. the sliipmeiit , can be made lor .-ay October II then i lie ililuculty ahoul pnv could he met. Kven apalt Iron! this ii i- prohalde iloit the companies eoiihl obtain advance., op butler in store, a practice not hitherto unknown in couect ion with a ..-hinpins? sti ike. This may !,e all rigid lor llie present. Pot later on the valim ~| the prodmu will suffer. There is of course a s. archy ol lint ter in I.omlen at t !c‘ i.i... 111 <* 11 1 and the price lias . rise-n to '! I it; ami will probably go higher. Ihe Haiti,, provinces are :!■. i non ing the

tivam. and 1 ' are ru.-liiag butter to tee Loudon market. The New Zealand Labour Daily is pas-Le. in oiler words ii is helping the Beds, and tie. 1 dairy farmers should remember thi mi election dav.