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Lyttelton Times, Volume VI, Issue 368, 14 May 1856, Page 6

To the Editor of the " Li/Uelton Times."

Sir, —I fear that the cause of the farmers will gain little hy the rash and unadvised letter of " R.E.M.," in the Canterbury Standard, of Thursday last. Let us look for a moment at the cause of the present low price of wheat. It seems to me that the position of the fanners at the present lime is similar to that of a merchant, who, seeing one year a great dearth of a particular commodity, imports the next year greatly in excess of the requirements of the place, and instead of realizing the handsome profit he anticipated, hums his finders, or, in other words, makes a loss. The fanners, for the last lew years, have seen wheat at an unusually hi^h price, and, without taking into consideration that the various causes contributing to maintain those prices were rapidly vanishing,— I allude to the Melbourne people turning their attention 10 she production of wheat, 'uul to the part of Australia usually exporting- that article having been visited by great droughts,—the farmers on the Plains luid themselves out entirely for wheat, instead of dividing their crops.

With regard to the censures lie passes upon the Union Bank, for its want of liberality, I would say that it is the very accommodation given by that establishment that has assisted to bring about the present glut in the markets. Most of the horses that were imported last year were actually sold by the Auctioneer on the understanding that bills would be taken for them, of a discountable character, at the Bank and, I am sure that many farmers regret now that they were not contented to use the means they had at their command, instead of runnin*into debt for the purpose of increasing their produce, which has turned out unsaleable.

The position in which " E.E.M." would wish to place the Union Bank, would be very analogous to that of the notorious Pun), Strachau, and Co., the only difference being that tU.ev invested their customers' capital in Continental railway schemes, and lie would have the-Union Bank invest theirs in the cereal crops of the Plains.

The best advice, I think, that can be given to the farmers at the present crisis would be, instead of troubling their heads about "hnuis, upon which they would have to pay liifivy interest, is to cm-tail their expenses, anil folfi% the laudable ad vice of Jupiter to the waggwi driver.

I remain. Sir,

Your obedient servant,

X. Y. Z