OTHER PAPERS’ OPINIONS.

Putaruru Press, Volume VII, Issue 277, 28 February 1929, Page 4

OTHER PAPERS’ OPINIONS.

CO-OPERATIVE FINANCE. | Investigation of the financial position of certain co-operative dairy companies; , with “'a view to their credit being used to reinforce the individual credit of some of their loanseeking suppliers, is being made by the Rural Intel-mediate Credits Board. This item from the board’s last monthly report tends to further emphasise the importance of sound finance in the affairs of dairying companies. Occasionally there has been a tendency to chase will o’ the wisps by indulging in a class of trading in stores, in competition with established traders. If a co-operative dairy company can run a store, and can sell to its suppliers satisfactory farm implements and commodities needed, in the farm home, and can sell these goods comparatively cheaply and yet on a basis profitable to the dairy company, such .evidence of skilful trading does not call for rebuke. But where, instead of profit, losses result, and where there is a speculative business out of keeping with the paid-up capital, a co-operative dairy company can hardly be said to be giving its suppliers the safest and soundest service. Such a position would be detrimental to the security of a company, and would not help it to help it.-; suppliers’ credit under any money-lending scheme. If the question were asked in which of the two directions a co-operative dairy company can give better service, the answer would surely be that the company that avoids extraneous speculative business and guards its own financial soundness serves its suppliers best.—Wellington Evening Post.