AMPLE CASH IN SIGHT

Hokitika Guardian, 17 March 1928, Page 1

AMPLE CASH IN SIGHT

BUT NONE FOR. FARMERS. There is plenty of money available in Auckland for investment just now, but none of it is for the farmer. This is an epitome of fact obtained by a “Star” representative from Auckland linns whose business keeps them it; close touch with the financial market. One who is connected with the audit of many big concerns stated that recently there had passed through his hands hundreds of securities, many of them representing substantial sums of money, and not one was on farm land. Many of the mortgages who lent money on land have sustained losses, and most of them inconvenience, consequently they have missed no opportunity to get their money out. AVliai has actually been happening in recent years, arid is still the ease, is that whenever public money is available through the State advances or any oilier Government source, tlie farmer uses the money obtained to satisfy existing liabilities. lie satisfies possibly three or four private mortgages, and betters his position by having his indebtedness consolidated under one mortgage and at lower interest rate. Rut not one of those morlgagees will put the money thus collected hack into another farm. lie probably consults his solicitor or sharebroker, and not one of these will recommend investment in larm lands. It happens, therefore, that the linns of the Government in trying to improve the financial conditions of the farmer are only partially successful. Even the lending of money at cheaper interest rate is only of limited application, for while it benefits the individual it has a tendency to lower the general rate ol interest, and this in its turn tends to send capital out of the country in search of a better return. So that through one cause and another tlie actual volume of money available for the use of farmers and the further development of our primary industries is virtually stationary. Investors look with a cold gaze on the men who are the backbone of”tlie country. Despite tlie heavy writings off in rural properties, they are ' still not confident that values have reached bedrock, and until this position is assured, the former will be an unwelcome borrower. At the present time the hulk of private investments are made with insurance companies, hanks, and the more popular commercial undertakings, and quite.a substantial quantity goes to Australia. The insurance companies have on hand large sums for investment, hut none of this is available for tlie farmer, who must thank his lucky stars that lie lias had a, couple of good seasons, and is not quite so dependent upon tlie cities’ money bags as be was a few years hack)