BANKING AND FARMERS

Rotorua Morning Post, Volume 2, Issue 374, 8 November 1932, Page 4

BANKING AND FARMERS

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(To the Editor) &

Sir, — From the article 1 ed by the New Zealand Fs Union, Auckland, in your issffii tober 26, 1932, the conclii^ arrived at that this responsl is conductirig a non-construcfr paign against the banks. 1 torted views which are evide; the articles are somewhat disc and the writer of it certaoj any elementary knowledge f banking industry. The imj that the banks are pickpoch tainly demands an explanatif the president of Uhe New ! Farmers' Union, Auckland banks buy and sell credit and titled to a reasonahle profifc 1 other trader. The differencel a bank and a merchant is did discern, one buys and sells cr make a profit while the oth and- sells goods for the purp making a profit, but the Ni land Farmers' Union, Apckls : innuendo, has indicated that' crime. It is unbelievable tt parochial views should sutss icularly as the farmers tfe have established trading f which buy and sell goods son other than to earn profifarmers have established dai panies which sell their pros the consumer at a profit, buti Zealand Farmers' Union, ^ does not approve this princij idea behind the Ottawa Co? was to f orce prices up by trad ments and other means for? fit of the producer, at the e$ the consumer and this objeovery strongly supported by d ers of this Dominion, The banks of this coufib ■ conf erred extraordinary h® on the farming community! Dominion and have inateriaH ed in the progress whicli 1 made since New Zealand $ ised. The prudent policies ■ unquestionable stability of Jin New Zealand have madeifor the banks to obtain dep a considerable proportion oi''posits has been lent to cr$ primary producers and all^ tries. But for the assistaB^ banks, the farming industry? in a more parlous condiW but the attitude of the Farmers' Union, Aucklandi ! gous to the dog that bit " that fed it. , , Banks must and do.ma® stantial reserves as secnritJ, depositors, their operation3; a result of the prudence ^ of their managements, fieeD ful but their success has ^ unwarranted criticism fi'0®, Zealand Farmers' Union. has aimed animadversion at but it is a pity that they did1 upon the misguided atten# certain co-operative conc^ trolled by farmers io c°n. teur banking business wjr°! taining adequafe . liqui^ ■ I shall be pleased if 7®" this letter suitable publiciv sirability of refuting tbe and unwarranted propag3^ New Zealand Farmers' land, will be qiiite evideft , I ain, etc. .. J

Wellington, Nov. 4. jflfl