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South Canterbury Times, Issue 2409, 6 December 1880, Page 2

The “ Warnambool Standard ” of November 9 contains a lengthy article on the farmers’ co-operative movement in South Canterbury. The “ Standard ”is one of the leading and most influential provincial journals in Victoria, and it represents a large and prosperous agricultural constituency. Its opinion on a question affecting the fanning cominanity is therefore of some value. After referring in complimentary terms to the lectures on co-operation delivered some time ago by Mr William Bateman, of Christchurch, the “ Standard ” proceeds to closely criticise the aims and prospects of the Association. While concurring in the object sought, our contemporary expresses considerable doubt regarding the feasibility of the process. Although the “ Standard” admits that fanners in New Zealand finding themselves “ handicapped by a combination of interests” are quite right in seeking a remedy, it refuses to believe “ that this application of the co-operative principle is likely to prove successful in the colonies generally,” and it adds : “ However it may be in New Zealand—about which we express no decided opinion—it would be clearly impracticable in Victoria.” The one great obstacle which the “ Standard” sees in the way of co-operation is the inability of the colonial farmer to dispense with the credit system. It says :—“ The storekeeper is too often the creditor for a prolonged period, and almost the banker of the strugglingfarmer ; and thus agriculturists are not, generally speaking, in a position to pay cash for their goods or to assist in establishing co-operative associations.” The fact that the Warrnambool “ Standlard” is “ watching with interest the jesitlb of “ the experiment now Wing in- “ augurated,” will, we hope-, stimulate the farmers of this district in the effort they are making. It shews that their example is likely to« have an influence far beyond Canteshury or even New Zealand. The remarks that we have quoted indicate too plainly that the pernicious eflfeots; of a rotten credit system by which the- agricultural community have been prostrated of late years has been felt not only hero but generally all over Australia. It is perfectly true that the storekeeper has been the creditor and banker of the struggling farmer, and it is no exaggeration to add tlmt in many cases he has been his baiHff and his undertaker. How many farmers in New Zealand have been ruined or brought to ruin’s door by this credit system —a system which the “Warrnambool Standard” says they cannot dispense with 1 It is for the fanners of this part of New Zealand to demonstrate, for the edification of the “ Standard ” and the Victorian fanner, that in this matter they are singularly mistaken. The Co-operative Association has been formed for the purpose of enabling fanners to get rid of this credit system, and to get out of the clutches of their storekeeper-bankers, or rather pawnbrokers. The farmers of New Zealand have had enough of forclosed mortgages and liens, and ruinous rates of interest during the past]harvest, and, if wo are not mistaken, they will give the credit giving storekeeper and his attendant bailiffs a tolerably wide berth for the future. The object of the Association—and the “ Standard ” apparently overlooks this—is to make every fanner his own banker, and to relieve the storekeeper of the cruel necessity of having to give credit for prolonged periods at 50 per cent per annum interest, irrespective of other business profits. The Canterbury Farmers’ Cooperative Association has rung the death knell of a hand-to-mouth pawnbroking deferred payment system; it has taken root, and is growing vigorously despite the cold water of its opponents, and it is destined to do the work of a reaper and binder—to reap a prosperous return for its shareholders and investors, and to hind together the great agricultural interests of these colonies.