LOANS IN EXCESS OF SECURITIES.

Shannon News, 21 September 1926, Page 4

LOANS IN EXCESS OF SECURITIES.

i N.Z. FARMERS’ COOP.. ASSN, j DIRECTORS’ REPORT. CHRISTCHURCH, Sept. 20. : Drastic proposals for dealing w-itli the capital of tire association are contained in a report of the directors .of the New Zealand Fanners’ Co-opera-tive Association, to he presented at the annual meeting of .shareholders. The report says the investigation of I the directors have revealed that many | of advances are at present and have ' been for some years far beyond the ! value of securities held or the abil- ; ity of the borrowers to pay. They also find there are large items of stocks which have regularly appeared in the balance sheets of previous years at values much in excess of their real worth. Included in the provisions to meet losses, estimated at £420,855, are the writing down of share capital, the using of nett profits of the past year, and the allocation of £45,000 from reserve for had debts.