CORRESPONDENCE.

Manawatu Herald, Volume XLVIII, Issue 30502, 24 June 1926, Page 1

CORRESPONDENCE.

(To The Editor)

Sir, —If ever there were an inspirational subject' for farmers it is afforded by the latest report o{ the Bank of New Zealand, Here wo have a Bank, which has not been famous for generous treatment of farmers during recent years, becoming philanthropic. I had almost said “suddenly becoming philanthropic." but it must not l>e forgotten that this Bank recently placed hors de combat from ordinary earnings, one and a quarter millions loaned to the State Advances at a, gloss interest rate which can only vettnn less than one-third of what that stmt would earn in ordinary business. This Bank, during the slump, lnrned down broad, acres wholesale, issuing special instructions, whilst at the same time it freely financed the prospective sales of rag.-, etc., overimporied by many millions. Xuw. when farming is precarious, the B.X.Z. proposes Id institute a immgiol system of departmental Agricultural Banking-— not with its own legitimate capital, hut as a yet• 10-bo-legnlisod .side line. The ([reeks are hearing gifts! It is an open secret that the Bank-, did mb object io a I.and Mortgage Bank per sc, when the Bill was before the House. Why should .they.' Thai the Banks should object to further compel it ion in the proliinble departments of their business is understandable, hut land finance is not one of these. The necessity for friendly finance of farmers’ insliluiioiis —freezing works, ole., —can lie gleaned from that part of Sir (Icoig-e Elliot's report which says that ii seems inevitable that the whole freezing- works indusirv will he left in Ihe hands of a "few proprietnrv "one;-! us."- These “proprict;ov concerns" Sir George Elliot does mb name, Inti those interested will Hud some of their mimes and much intensely interesting information concerning them in the "summary of the Report of the Seder,al Trade Commission of the C.S.A. on the Meal Backing Industry” —reprinted by the X.Z. (loveriiment ami obtainable from the Gnvenimenl printer. II were better Hint •■ill existing banks weie cleared out, loekg slock and barrel. Ilian that we slioml have amongst us tlie slate of affairs portrayed in that pamphlet. Sir George Elliot is engaged in political vmidmnking. He must know quite well that no Government, and least of all the present Government, can resist the growing demand for an Agricultural Bank, but he is laying a trnek which he hopes will lead away from anything more than land mortgage linance. Yours truly, A. E. ROBIN SOX.