Untitled

Hokitika Guardian, 18 August 1926, Page 2

Points in regard to matters affecting the welfare of the man on the land

are very fully reviewed in the Rural Credit report presented to Parliament last week. In a general discussion of the subject of rural finance, the report goes on to show how orderly~marketing is hound up with the financial issue. The importance of orderly marketing cannot be ignored in the consideration of rural finance. In both Europe and America experience has shown that the two are indissolubly bound up together. Such is ah extract from the report presented to Parliament of the Royal Commission which investigated the operations of rural credit systems abroad. Continuing, the Commissioners stated that credit as a means to orderly marketng was as important as the provision of capital required in the purchase and operation of the farm. The realisation of agricultural products was intermittent and irregular through price fluctuations .attributable to seasonal conditions, over-supply, trade depression, interrupted communication, and other unforeseen causes. “The need,’’ they added, “is created not only for intermediate credit, but also for intermediate storage, regulated in such a manner as to render the produce stored an acceptable security. This problem confronts the farmer all over the world. The United States had contributed towards its solution by the passage of merchandising legislation which is having beneficial results. In Great Britain the question is being carefully investigated. . .The length of the period of turnover, and the fact that , marketing is largely a seasonal operation, also affects the situation. The farmer’s return for his produce is often affected by the pressure of financial circumstances, which force him on the market at a moment when it is prejudiced by the conditions already referred to. Short-term or intermediate credit can often ho judiciously employed to prevent undue hardship, but orderly marketing must not he confused with speculative holding. The farmer may bo assisted to avoid exaggerating the conditions of a depressed] market by overloading it, but ois tin' other hand, precautions must he taken to prevent the misuse of credit bv speculators, or those who wish to avail themselves of it in the hope of realising unwarrantable expectations as to price.”